Wildfires likely to jolt rocketing California electricity costs

By Jason Plautz | 01/15/2025 06:26 AM EST

Southern California Edison faces spiraling recovery costs and potential liability claims.

A firefighter battles the Palisades Fire.

A firefighter battles the Palisades Fire in Mandeville Canyon in Los Angeles on Saturday. Jae C. Hong/AP

The destructive wildfires that have raged for more than a week in and around Los Angeles are already estimated to be among the most expensive disasters in the country’s history, with upwards of $250 billion in damages expected.

The fires could pile on even more utility costs to the spate of disastrous California wildfires since 2020 that have contributed to the highest average electricity rates of any state outside of Hawaii.

Firefighters are still tackling multiple blazes, fueled by dry conditions and high winds. The largest, the Palisades fire, has burned more than 23,000 acres. The Eaton Fire in northern LA has burned more than 14,000 acres, and the Hurst Fire has burned nearly 800 acres. An estimate this week from AccuWeather said that the total damage from the fires could land between $250 and $275 billion. According to Los Angeles county, at least 24 people have died in the fires.

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Investigators are still determining the extent of the damage and what could have sparked the blazes. Regardless of the outcome, observers say that the cost burden on utility Southern California Edison (SCE) could be significant.

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