The CEO of Southern California's Edison parent company said Tuesday that the company could suffer "significant losses" related to the deadly Eaton fire, which ignited Jan. 7 and burned 14,000 acres.

Edison International CEO Pedro Pizarro said on the company's first-quarter earnings call that an investigation into the cause of the fire is underway and no conclusion has been drawn, with Edison's equipment triggering the fire.

But Edison's investigation into the fire began did not reveal any other possible sources of ignition, Pizarro added.

"There is no other evidence" and "because of the pending lawsuit, Edison International and Southern California Edison will likely cause material damage related to the Eaton fire."

Edison had previously admitted that it might be responsible for the fire and said earlier this month that being dormant may be the cause.

But Tuesday’s comments are by far the most obvious signal that the company could cause huge losses from devastating wildfires.

"It's still very early here, and the responsibility today is simply unestimated," Pizarro said. "I'm not sure when it can be estimated."

The Eaton Fire killed 18 people and destroyed thousands of houses and other buildings. Early estimates set the cost of damages at $10 billion, but experts say that number will increase. The total estimated economic losses caused by wildfires in January exceeded $250 billion.

Rosemead-based Edison, Southern California, is an investor-owned utility that powers approximately 15 million people in a 50,000-square-mile South California. Edison International, along with the country’s largest utility, also owns a trio of energy consulting firms.

In total, Edison International employs more than 14,000 people, and was valued at about $30 billion before the wildfires in January. The company's valuation closed at $22.6 billion on Tuesday.

If Edison had to bear the losses caused by the Eaton fire, the utility would be partially protected by an emergency fund created by state lawmakers after the earlier wildfires. The fund aims to protect utility companies from bankruptcy, which must pay huge expenses if the utility is found responsible for wildfires.

When the fire began, videos of flames at the bottom of an Edison Transmission Tower in Eaton Canyon sparked suspicion that the utility was at fault. According to the Times, the fire was triggered in the months before the fires sparked, the state utility safety regulator raised questions about the issue of Edison, Southern California, maintaining aging transmission lines. Edison's equipment triggered 178 fires in 2024.

“When we deal with TKM and Woolsey, we will have the wildfire fund we will receive,” Edison International Chief Financial Officer Maria Rigatti said on Tuesday.

The emergency fund should cover up to $21 billion in compensation on behalf of a utility, but as of December 2024, only $14.7 billion was collected.

Under state law, if the review finds that the review takes action in a way to prevent a fire, such as limiting the power by turning off the power in a strong wind, the utility does not have to use the wildfire fund to make up the wildfire fund to make up the wildfire fund. But if Edison is unwise, it will have to pay back $4 billion.

“Based on everything we know today and the information we review, we believe Southern California Edison will make a good intention to show that it is prudent,” Rigerty said.

Edison International reported first-quarter net income of $1.4 billion and earnings per share on Tuesday, up from $1.13 a year ago.

Stocks closed at $58.73 on Tuesday, half of the year so far, down 26%.