California utility selloff on fires seems overdone, says Wells Fargo

Wells Fargo says the Southern California wildfires are weighing heavily on shares of Edison International (EIX) but that there is no indication the company’s equipment is involved. The broader weakness in other California utilities, including PG&E (PCG), Sempra Energy (SRE), and California Water Service (CWT), it likely due to the heightened wildfire risk of the event, the analyst tells investors in a research note. At this point, the reaction seems overdone, contends Wells. The firm views the lack an electric safety incident report being filed by Southern California Edison as a “definitive positive” for Edison International. It would seem to indicate that electric utility equipment was not involved, Wells contends.