California Utilities Fall as Investors Worry About Fire Fund

California utility giants Edison International and PG&E Corp. fell amid investor concerns about the size of a state wildfire fund set up to backstop power companies if their equipment is linked to a catastrophic wildfire.

Edison shares dropped as much as 6.6% on Friday after the utility told regulators that attorneys representing insurance companies have asked them to preserve evidence in connection with the deadly Eaton fire in Los Angeles. PG&E plunged as much as 12%, the most since March 2020.

Authorities haven’t determined the cause of the Eaton wildfire or the other major blazes burning in Los Angeles. The ...