What happened
Pacific Gas & Electric (PG&E) shares declined 9.8% in U.S. premarket trading, while Edison International slid 3%.
The sell-off came after the California legislature revised Senate Bill 492, a measure aimed at reducing wildfire risk and improving disaster recovery.
Why it matters
The amendment to the bill could affect how utilities manage wildfire liabilities and recovery costs, leading investors to reassess the financial impact on these companies.
Changes to wildfire-related legislation are closely watched because they can influence utility spending, insurance availability, and shareholder exposure to future disasters.
Key facts
PG&E fell 9.8% in premarket trading.
Edison International dropped 3% in premarket trading.
The California legislature amended Senate Bill 492.
The bill is focused on reducing wildfire risk and enhancing disaster recovery.
What to watch next
Investors will likely monitor further details of the amended bill and its potential effects on utility budgets and rates.
Market reaction may continue as more information emerges about how the revised legislation will be implemented.