The onslaught of wildfires in Los Angeles and surrounding southern California communities has caused a dramatic drop in the stock of Edison International, the utility that serves much of the affected area, affecting the utility’s 401(k) plan investors who hold company stock.
Edison is the parent of Southern California Edison, which has announced shutting off power to some customers in the region.
Edison’s stock fell 10.2% on Jan. 8 to close at $69.50 on trading volume that was five times greater than the average daily trade. Stock markets were closed Jan. 9 due to the national day of mourning for President Jimmy Carter.
Participants in the Edison 401(k) Savings Plan invested $321.5 million, or 5.7% of total plan assets, in company stock for the year ended Dec. 31, 2023, according to the latest Form 5500.
That percentage is well below the 20% level for a single investment that indicates a retirement plan isn’t properly diversified, according to the Internal Revenue Service.
“Given the unsafe conditions for electric power restorations, customers may experience several days of outages,” Edison International said in a Jan. 8 news release. Southern California Edison “will restore service as soon as it is safe to do so.”
As of 4 p.m. PST on Jan. 8, the utility reported 413,639 SCE customers were without power, the news release said.
Southern California Edison provides utility electricity to 15 million people across southern, central and coastal California, the news release said.
