The Eaton Fire in central Los Angeles County poses a potential credit risk to power provider Southern California Edison, which operates electrical lines in the area where the destructive blaze first started,

The utility has notified the California Public Utilities Commission that it had received a number of notices, from attorneys representing insurance companies, to preserve evidence regarding the Eaton fire.

Altadena residents said in separate lawsuits that the utility’s electrical equipment had sparked the fire, which grew to consume 14,000 acres.

Though the origin of the catastrophic Eaton Fire has not yet been determined, the lawsuit faults the electric utility for failing to de-energize wires despite a red flag wind warning,

The L.A.-area fires may pose the first big test of California’s wildfire fund, which was set up in 2019 to protect utilities from bankruptcy.

Locals are accusing Southern California Edison of accidentally starting the Eaton Fire. KTLA's Annie Rose Ramos interviewed David Eisenhauer with SCE on Friday, Jan. 17, 2025.