The stock price of Edison International decreases by over 10% amid ongoing wildfires in California.

The wildfires in California are causing fear and uncertainty among investors, as Southern California Edison, the power utility for Los Angeles, is directly affected.

The stock was down 13% in afternoon trading Wednesday.

As multiple large fires rage around Los Angeles, strong winds are predicted to make them harder to control. This has led to the evacuation of tens of thousands of people and the death of at least two individuals, according to the Associated Press.

Over 69,000 Edison customers were without power by Wednesday morning, according to the utility's website.

For years, public utilities have faced challenges in preventing and preparing for wildfires. While previous wildfires in California have been linked to problems with power equipment, no public information has yet linked Edison to the fires.

According to Bank of America analyst Ross Fowler, there is no evidence to suggest that SCE equipment caused the fire, as SCE has not filed an electric service incident report (ESIR). However, there are reports indicating that SCE equipment has been affected by the fires, and we can expect some additional expenses related to the fire, regardless of the cause.

Wildfires have resulted in significant financial consequences for utilities and their investors. Pacific Gas and Electric Company, a Northern California utility, declared bankruptcy in 2019 due to its financial liabilities from wildfires. The company emerged from bankruptcy in 2020.

The 2020 state law, AB 1054, restricted the future liability of utility companies.

Our conversations with investors have left them uneasy due to the lack of containment, while we feel comfortable due to the AB 1054 liability protections that limit the tail risks for the utilities, according to Jefferies analyst Julien Dumoulin-Smith in a note to clients Wednesday.

On Wednesday, other California utility stocks, including the reconstituted , were down 4%. Additionally, shares of Sempra's SDG&E fell 3%. Sempra's SDG&E announced that it had shut off power to approximately 7,000 customers due to fire risks.

— CNBC's Michael Bloom contributed reporting.