Why Edison International's Shares Plunged 13% Today

Shares of Southern California utility Edison International (NYSE: EIX) plunged as much as 13.3% in trading Tuesday after a brush fire began to spread in the company's territory. At 3:20 p.m. EST shares were still down 12.8% on the day.

A wildfire wouldn't normally be a problem for a utility, but in California, utilities can be held liable for property damage if they are determined to have caused the fire. The cause of this fire is uncertain, but it falls squarely in Edison International's territory, so there could be a cost for the company.

Image source: Getty Images.

Source: Fool.com