Edison International Faces Investor Lawsuits Amidst Earnings Concerns#
Edison International EIX, a major player in the regulated electric utility sector, is currently navigating a complex landscape marked by significant legal challenges and a projected decline in upcoming earnings. The company, which delivers electricity to 15 million customers across Southern, Central, and Coastal California, faces multiple securities class action lawsuits, raising concerns among investors and analysts alike. These lawsuits, coupled with an anticipated downturn in Q4 earnings, are contributing to increased stock volatility and casting a shadow over the company's financial outlook. As of February 20, 2025, EIX is trading at $51.90, a significant drop from its year high of $88.77, and hovering near its year low of $49.06, according to Monexa AI.
The current challenges facing EIX come at a time when the utility industry is undergoing significant transformation, driven by the increasing adoption of renewable energy sources and the need for grid modernization. The legal and financial headwinds pose a threat to its ability to capitalize on these opportunities. The outcome of these lawsuits and the company's ability to manage its financial obligations will be crucial in determining its long-term success.
Given the current circumstances, investors are closely monitoring Edison International's EIX response to these challenges. The company's management team will need to demonstrate a clear strategy for resolving the legal issues, improving financial performance, and maintaining investor confidence. Furthermore, effective communication with stakeholders and transparency in its operations will be critical in navigating this period of uncertainty. The ability to address these concerns effectively will ultimately determine the future trajectory of Edison International and its position in the evolving energy landscape.
Understanding the Securities Class Action Against EIX#
Several law firms have announced the filing of class action lawsuits against Edison International EIX, alleging violations of securities laws between February 25, 2021, and February 6, 2025. These lawsuits generally stem from claims that the company made false and/or misleading statements regarding the effectiveness of its Public Safety Power Shutoffs (PSPS) program and its role in mitigating wildfire risks. The plaintiffs contend that these misrepresentations inflated the company's stock price, causing financial harm to investors when the truth was revealed. The legal actions are based on alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
These lawsuits highlight the increasing scrutiny that utility companies face regarding their responsibility in preventing wildfires, particularly in regions prone to such events. The PSPS program, designed to proactively shut off power in high-risk areas during periods of extreme weather conditions, is a critical tool for mitigating wildfire risk. However, the effectiveness and implementation of these programs have come under intense scrutiny, with some critics arguing that they disproportionately impact vulnerable communities and disrupt essential services. The lawsuits against EIX underscore the potential legal and financial consequences of failing to adequately manage wildfire risks and accurately communicate the effectiveness of preventative measures.
The outcome of these lawsuits could have significant implications for Edison International EIX. A negative ruling could result in substantial financial penalties, damage to the company's reputation, and increased regulatory oversight. Conversely, a successful defense could provide a measure of relief and bolster investor confidence. The legal proceedings are expected to be lengthy and complex, and the ultimate resolution remains uncertain. Investors are advised to closely monitor the developments in these cases and assess the potential impact on their investment decisions.
Details of the Securities Law Violations Alleged Against Edison International#
The specific allegations against Edison International EIX center on the company's statements and disclosures concerning the effectiveness of its PSPS program and its overall commitment to wildfire safety. Plaintiffs claim that EIX misrepresented the extent to which its PSPS program was effectively preventing wildfires and downplayed the potential liability associated with its equipment causing or contributing to such events. The lawsuits allege that the company failed to adequately disclose known deficiencies in its infrastructure and the potential for its equipment to ignite wildfires, even with the implementation of PSPS measures.
These alleged misrepresentations are said to have created a false sense of security among investors, leading them to believe that Edison International EIX was effectively managing its wildfire risks. The lawsuits contend that when news emerged regarding the company's potential role in igniting certain wildfires, such as the Eaton and Hurst fires, the stock price plummeted, causing significant losses to investors. The plaintiffs argue that the company's failure to provide accurate and complete information about its wildfire risks constituted a violation of securities laws.
The legal arguments in these cases are likely to focus on whether Edison International EIX had a legal duty to disclose the specific information that plaintiffs claim was withheld, and whether the company's statements were materially false or misleading. The courts will also consider whether the company acted with the required level of scienter, meaning whether it intentionally or recklessly disregarded the truth in its disclosures. The burden of proof rests on the plaintiffs to demonstrate that the company violated securities laws and that their losses were directly caused by these violations.
Key Dates and Deadlines for EIX Investors#
Investors who purchased Edison International EIX securities between February 25, 2021, and February 6, 2025, should be aware of important deadlines related to the class action lawsuits. The lead plaintiff deadline, which is the deadline to seek appointment as lead plaintiff in the class action, is typically set by the court and varies depending on the specific case. Several law firms have announced deadlines in April 2025, including April 14 and April 21, according to Monexa AI, but investors should verify these dates independently with the relevant courts and legal counsel.
Several law firms, including Rosen Law Firm, Robbins LLP, The Gross Law Firm, The Schall Law Firm, and Faruqi & Faruqi, are actively encouraging investors to join the class action lawsuits, as noted by Monexa AI. This heightened legal activity underscores the significance of the litigation and its potential impact on the company and its shareholders.
The lead plaintiff is a representative of the class of investors who suffered losses and plays a key role in overseeing the litigation. The lead plaintiff has the responsibility of selecting and supervising the attorneys representing the class, participating in key decisions related to the case, and ultimately approving any settlement or judgment. The court will consider various factors in appointing the lead plaintiff, including the size of the investor's losses and their ability to adequately represent the interests of the class.
Investors who wish to participate in the class action but do not seek to be appointed as lead plaintiff do not need to take any immediate action. However, they should retain copies of their purchase and sale records for EIX securities during the class period. If a settlement is reached or a judgment is obtained in favor of the class, investors will typically be required to submit a claim form to receive their share of the recovery. Investors should monitor the progress of the litigation and consult with legal counsel to understand their rights and options.
Edison International's Q4 Earnings: Analysts Predict a Decline#
In addition to the legal challenges, Edison International EIX is facing headwinds related to its financial performance. Analysts at Zacks Investment Research anticipate a decline in the company's Q4 earnings, according to Monexa AI. While the specific factors contributing to the anticipated decline are not fully detailed in the available news, it is likely that increased wildfire mitigation costs, regulatory expenses, and potentially lower electricity demand are playing a role.
The projected earnings decline raises concerns about the company's ability to maintain its current dividend payout ratio and invest in future growth initiatives. As of February 20, 2025, Edison International EIX has a dividend yield of +6.10%, according to Monexa AI, which is relatively high compared to other utility companies. However, a high dividend yield can be unsustainable if the company's earnings are not sufficient to cover the dividend payments. If earnings decline significantly, the company may be forced to reduce its dividend, which could negatively impact investor sentiment and the stock price.
The company's upcoming earnings announcement, scheduled for February 28, 2025, according to Monexa AI, will be closely watched by investors and analysts. Management's commentary on the earnings results, the outlook for future financial performance, and the strategy for addressing the legal challenges will be critical in shaping market expectations. Investors will be particularly interested in hearing about the company's plans to manage wildfire risks, reduce operating expenses, and maintain its financial stability.
Factors Contributing to the Anticipated Earnings Decline#
Several factors could be contributing to the anticipated decline in Edison International's EIX Q4 earnings. Increased wildfire mitigation costs are likely playing a significant role, as the company has been investing heavily in grid hardening, vegetation management, and other measures to reduce the risk of wildfires. These investments, while necessary, can put a strain on the company's financial resources and negatively impact earnings.
Regulatory expenses are also likely to be higher, as the company navigates the complex regulatory landscape in California. The California Public Utilities Commission (CPUC) has been increasing its oversight of utility companies' wildfire safety plans, and EIX is likely incurring additional costs to comply with these regulations. Furthermore, the company may be facing increased legal expenses related to the ongoing wildfire litigation.
Lower electricity demand could also be contributing to the earnings decline. Economic slowdowns, energy efficiency initiatives, and the increasing adoption of distributed generation sources, such as solar panels, can all lead to lower electricity sales. If EIX is experiencing lower demand, it may be difficult to offset the increased costs associated with wildfire mitigation and regulatory compliance.
The Impact of Wildfire Liabilities on EIX's Financial Outlook#
The potential financial liabilities associated with wildfire litigation pose a significant threat to Edison International's EIX financial outlook. The company has faced numerous lawsuits alleging that its equipment caused or contributed to wildfires in California, and the potential damages in these cases could be substantial. While it is difficult to predict the ultimate financial impact of these lawsuits, analysts have estimated that the company could face billions of dollars in liabilities.
The financial impact of wildfire liabilities can extend beyond direct settlement costs. The company may also incur significant legal expenses, insurance costs, and increased borrowing costs as a result of the litigation. Furthermore, a negative outcome in these cases could damage the company's credit rating, making it more expensive to raise capital in the future.
The management of wildfire liabilities is a critical challenge for Edison International [EIX](/dashboard/companies/EIX]. The company must develop a comprehensive strategy for defending itself in these lawsuits, mitigating its financial exposure, and maintaining its financial stability. This strategy may involve negotiating settlements with plaintiffs, pursuing insurance coverage, and implementing risk management measures to prevent future wildfires.
Assessing the Financial Risks Associated with Wildfire Litigation#
Assessing the financial risks associated with wildfire litigation is a complex and uncertain process. The ultimate outcome of these lawsuits depends on a variety of factors, including the specific facts of each case, the applicable laws and regulations, and the skill of the attorneys representing the parties. It is also difficult to predict the size of potential settlements or judgments, as these can vary widely depending on the severity of the damages and the perceived culpability of the company.
The company's exposure to these liabilities is further complicated by the fact that Southern California Edison (SCE), a subsidiary of Edison International, believes its equipment may be associated with the start of the Hurst fire, as reported by Monexa AI.
Analysts and investors often use various methods to estimate the potential financial impact of wildfire liabilities. These methods may include analyzing historical wildfire settlements, assessing the company's insurance coverage, and conducting sensitivity analyses to determine the potential impact of different settlement scenarios on the company's financial statements. However, these estimates are inherently uncertain and should be viewed with caution.
The financial risks associated with wildfire litigation can be mitigated through effective risk management practices. These practices may include implementing robust wildfire prevention measures, maintaining adequate insurance coverage, and developing a comprehensive legal strategy for defending against lawsuits. Furthermore, transparency and effective communication with stakeholders can help to manage investor expectations and maintain confidence in the company's ability to navigate these challenges.
Edison International's Response to Wildfire Risks and PSPS Program#
Edison International EIX has implemented a range of measures to address wildfire risks and improve the effectiveness of its PSPS program. These measures include investing in grid hardening, vegetation management, and advanced technology to detect and prevent wildfires. The company is also working to improve its communication with customers and communities affected by PSPS events.
Grid hardening involves strengthening the electrical grid to make it more resistant to wildfires. This may include replacing wooden poles with steel poles, installing covered conductors, and upgrading substations. Vegetation management involves removing trees and other vegetation that could come into contact with power lines and ignite wildfires. Advanced technology includes sensors, cameras, and data analytics to detect and respond to wildfires more quickly.
The company is also working to improve its PSPS program by providing more advance notice to customers, offering resources and support during PSPS events, and minimizing the duration of outages. These efforts are aimed at reducing the impact of PSPS events on customers and communities while still mitigating the risk of wildfires.
The Role of PSPS in Wildfire Prevention and the Resulting Lawsuits#
The Public Safety Power Shutoff (PSPS) program is a controversial but essential tool for wildfire prevention. The program involves proactively shutting off power in high-risk areas during periods of extreme weather conditions, such as high winds and dry vegetation. While PSPS events can be disruptive and inconvenient for customers, they are often necessary to prevent wildfires caused by damaged or downed power lines.
The lawsuits against Edison International EIX highlight the challenges and complexities of implementing PSPS programs. Critics argue that these programs disproportionately impact vulnerable communities, disrupt essential services, and can have negative economic consequences. Furthermore, there is debate about the effectiveness of PSPS programs in preventing wildfires, as some wildfires may be caused by factors other than power lines.
The company must balance the need to mitigate wildfire risks with the need to provide reliable electricity service to its customers. This requires careful planning, effective communication, and a commitment to minimizing the impact of PSPS events on affected communities. The company must also be transparent about the criteria used to determine when to implement PSPS events and the steps it is taking to improve the program.
Analyst Perspectives on EIX: UBS Upgrade and Future Potential#
Despite the current challenges, some analysts remain optimistic about Edison International's EIX future potential. While UBS recently upgraded Edison International shares, they also lowered the price target from $69.00 to $65.00, according to Monexa AI. The analyst cited that EIX is currently undervalued given its wildfire exposure and California's wildfire fund. This suggests that the analyst believes the market has overreacted to the wildfire risks and that the company's stock price has the potential to rebound.
The UBS upgrade is based on the expectation that the company will be able to effectively manage its wildfire liabilities and that the regulatory environment in California will become more favorable. The analyst also cited the company's commitment to renewable energy and its potential to benefit from the growing demand for clean energy.
However, it is important to note that analyst ratings are not a guarantee of future stock performance. The market is subject to numerous factors that can influence stock prices, and analyst ratings should be viewed as just one piece of information in the overall investment decision-making process.
Key Takeaways from UBS's Upgrade of EIX Stock#
The UBS upgrade of Edison International EIX stock provides several key takeaways for investors. First, it suggests that the market may be underestimating the company's ability to manage its wildfire liabilities. UBS believes that the current stock price reflects a worst-case scenario and that there is potential for the stock to rerate to better levels as the legal proceedings unfold and the regulatory environment becomes clearer.
Second, the upgrade highlights the company's commitment to renewable energy and its potential to benefit from the growing demand for clean energy. California has ambitious clean energy goals, and EIX is well-positioned to capitalize on these opportunities. The company is investing heavily in renewable energy projects and grid modernization, which could drive future earnings growth.
Third, the upgrade suggests that the regulatory environment in California may become more favorable. The CPUC has been under pressure to provide more clarity and predictability regarding wildfire cost recovery, and there is hope that the commission will adopt policies that are more supportive of utility companies. A more favorable regulatory environment could reduce the financial risks associated with wildfire liabilities and boost investor confidence.
Edison International's Commitment to Renewable Energy and Sustainability#
Edison International EIX is committed to transitioning to a clean energy future and has set a goal to achieve net-zero emissions by 2045. The company is investing heavily in renewable energy projects, such as solar, wind, and energy storage, and is working to modernize its grid to accommodate these new sources of energy. EIX is also supporting the development of electric vehicle infrastructure and promoting energy efficiency measures.
The company's commitment to renewable energy is driven by both environmental concerns and economic opportunities. California has ambitious clean energy goals, and EIX is well-positioned to benefit from the growing demand for renewable energy. Furthermore, renewable energy projects can provide stable, long-term revenue streams and reduce the company's reliance on fossil fuels.
The transition to a clean energy future presents both challenges and opportunities for Edison International [EIX](/dashboard/companies/EIX]. The company must manage the integration of new renewable energy sources into its grid, ensure the reliability of its electricity service, and address the potential impact of the transition on its workforce. However, by embracing innovation and investing in sustainable technologies, EIX can position itself for long-term success in the evolving energy landscape.
Edison International's Net-Zero Emissions Target and Investment Strategy#
Edison International's EIX net-zero emissions target is a bold and ambitious goal that reflects the company's commitment to sustainability. To achieve this target, the company is pursuing a multi-faceted strategy that includes investing in renewable energy projects, modernizing its grid, and supporting the development of clean transportation and energy efficiency technologies.
The company is investing heavily in solar and wind energy projects, both directly and through power purchase agreements with independent renewable energy developers. EIX is also investing in energy storage projects, such as batteries, to help integrate these intermittent renewable energy sources into the grid. Grid modernization efforts include upgrading transmission and distribution lines, installing smart meters, and implementing advanced control systems.
The company is also supporting the development of electric vehicle infrastructure by partnering with automakers, charging station providers, and government agencies. EIX is also promoting energy efficiency measures through customer education programs, rebates, and incentives. These efforts are aimed at reducing electricity demand and promoting the adoption of sustainable energy practices.
Executive Leadership Changes: Jennifer Granholm Joins the Board#
In a significant development, Jennifer Granholm, former Governor of Michigan and former U.S. Secretary of Energy, has joined the boards of directors of Edison International EIX and Southern California Edison. Granholm's extensive experience in energy policy and her deep understanding of the clean energy transition are expected to be valuable assets for the company.
Granholm's appointment comes at a critical time for Edison International [EIX](/dashboard/companies/EIX], as the company navigates the challenges of wildfire liabilities, regulatory scrutiny, and the transition to a clean energy future. Her expertise in these areas could help the company to develop and implement effective strategies for addressing these challenges and capitalizing on the opportunities presented by the evolving energy landscape.
The addition of Jennifer Granholm to the board is a positive sign for Edison International [EIX](/dashboard/companies/EIX]. Her experience and expertise are expected to strengthen the company's leadership team and enhance its ability to navigate the complex challenges facing the utility industry.
The Significance of Jennifer Granholm's Appointment to the Board#
Jennifer Granholm's appointment to the board of Edison International EIX is significant for several reasons. First, her extensive experience in energy policy and her deep understanding of the clean energy transition bring valuable expertise to the company. Granholm served as Governor of Michigan for eight years and as U.S. Secretary of Energy under President Obama, giving her a unique perspective on the challenges and opportunities facing the energy industry.
Second, her appointment signals the company's commitment to sustainability and its willingness to embrace new ideas and perspectives. Granholm is a strong advocate for clean energy and has been a leader in promoting policies to reduce carbon emissions and accelerate the transition to a clean energy future. Her presence on the board could help to guide the company's sustainability efforts and ensure that it remains at the forefront of the clean energy transition.
Third, her appointment could enhance the company's credibility with regulators, investors, and other stakeholders. Granholm is a well-respected figure in the energy industry and her presence on the board could boost confidence in the company's ability to manage its challenges and achieve its goals.
EIX Stock Performance: Volatility and Investor Sentiment#
Edison International's EIX stock performance has been volatile in recent months, reflecting the uncertainty surrounding the company's legal challenges, earnings outlook, and the overall market conditions. As of February 20, 2025, the stock is trading at $51.90, significantly below its year high of $88.77 and near its year low of $49.06, according to Monexa AI. The stock's volatility is likely to continue as the legal proceedings unfold and the company releases its Q4 earnings report.
Investor sentiment towards Edison International EIX has been negatively impacted by the ongoing lawsuits and the projected earnings decline. However, some analysts believe that the market has overreacted to these challenges and that the stock is currently undervalued. The UBS upgrade suggests that there is potential for the stock to rebound if the company can effectively manage its wildfire liabilities and improve its financial performance.
The stock's beta, which measures its volatility relative to the market, is 0.907, according to Monexa AI. This indicates that EIX is slightly less volatile than the overall market. This lower beta may make EIX attractive to risk-averse investors who are seeking a more stable investment during periods of market uncertainty.
Analyzing EIX's Stock Beta and Market Performance#
The stock's beta is an important indicator of its risk profile. A beta of 1 indicates that the stock's price will move in line with the market, while a beta greater than 1 indicates that the stock is more volatile than the market. A beta less than 1 indicates that the stock is less volatile than the market.
Edison International's EIX beta of 0.907 suggests that the stock is slightly less volatile than the overall market. This is consistent with the characteristics of a regulated utility company, which typically provides a stable stream of earnings and is less sensitive to economic cycles than other sectors.
However, it is important to note that the stock's beta can change over time, depending on various factors, such as the company's financial performance, the regulatory environment, and the overall market conditions. Investors should monitor the stock's beta and adjust their investment strategies accordingly.
Dividend Sustainability: Examining EIX's Payout Ratio and Cash Flow#
Edison International EIX has a long history of paying dividends to its shareholders. The company has raised its common stock dividend by +6.1%, marking the 21st consecutive annual increase. However, the company's high payout ratio and negative free cash flow raise concerns about the sustainability of its dividend in the future.
The payout ratio is the percentage of earnings that a company pays out in dividends. Edison International's EIX payout ratio is +83.84%, according to Monexa AI, which is relatively high compared to other utility companies. A high payout ratio can be unsustainable if the company's earnings decline or if it needs to invest heavily in future growth initiatives.
The company's free cash flow, which is the cash flow available to the company after it has paid for its operating expenses and capital expenditures, is currently negative (-$2.50 per share), according to Monexa AI. Negative free cash flow indicates that the company is spending more cash than it is generating, which can put a strain on its financial resources and limit its ability to pay dividends.
Examining Free Cash Flow and its Impact on Dividend Policy#
Free cash flow is a critical indicator of a company's financial health and its ability to sustain its dividend payments. A company with positive free cash flow has more financial flexibility and is better positioned to pay dividends, invest in future growth, and weather economic downturns.
Edison International's EIX negative free cash flow raises concerns about its ability to sustain its dividend payments in the long term. If the company's free cash flow remains negative, it may be forced to reduce its dividend or issue debt to fund its dividend payments.
The company's dividend policy will be closely watched by investors and analysts. Management's commentary on the dividend outlook and its plans to improve free cash flow will be critical in shaping market expectations.
Industry Trends and the California Utility Market#
The California utility market is undergoing significant transformation, driven by the increasing adoption of renewable energy sources, the need for grid modernization, and the growing threat of wildfires. These trends are creating both challenges and opportunities for utility companies operating in the state.
The increasing adoption of renewable energy sources is requiring utility companies to invest in new infrastructure and technologies to integrate these intermittent sources of energy into the grid. Grid modernization efforts include upgrading transmission and distribution lines, installing smart meters, and implementing advanced control systems.
The growing threat of wildfires is requiring utility companies to invest in wildfire prevention measures, such as grid hardening, vegetation management, and advanced technology. Companies are also implementing PSPS programs to proactively shut off power in high-risk areas during periods of extreme weather conditions.
Regulatory Landscape and its Influence on California Utilities#
The regulatory landscape in California has a significant impact on the operations and financial performance of utility companies. The CPUC is responsible for regulating utility rates, overseeing wildfire safety plans, and promoting clean energy policies.
The CPUC's decisions can have a significant impact on utility companies' earnings, investments, and dividend policies. The commission is under pressure to balance the interests of utility companies, customers, and the environment. This can lead to complex and sometimes unpredictable regulatory outcomes.
Utility companies operating in California must navigate the complex regulatory landscape and adapt to changing policies and priorities. Effective communication with regulators and a commitment to transparency are essential for success in the California utility market.
The Broader Implications for Edison International and its Stakeholders#
The challenges facing Edison International EIX have broader implications for its stakeholders, including customers, employees, and the communities it serves. The company's ability to manage its legal challenges, improve its financial performance, and transition to a clean energy future will have a direct impact on the reliability and affordability of electricity service, the job security of its employees, and the economic well-being of the communities it serves.
Customers are concerned about the potential for increased electricity rates and the impact of PSPS events on their lives and businesses. Employees are concerned about job security and the potential for layoffs as the company navigates its challenges. Communities are concerned about the potential for wildfires and the impact on their safety and economic well-being.
Edison International EIX must address these concerns and demonstrate a commitment to serving the best interests of its stakeholders. Effective communication, transparency, and a focus on sustainable solutions are essential for building trust and maintaining a positive relationship with its stakeholders.
Key Financial Metrics for Edison International (EIX)#
| Metric | Value | Source |
|---|---|---|
| Current Price | $51.90 | Monexa AI |
| Year High | $88.77 | Monexa AI |
| Year Low | $49.06 | Monexa AI |
| Dividend Yield | 6.10% | Monexa AI |
| Beta | 0.907 | Monexa AI |
| Payout Ratio | 83.84% | Monexa AI |
| Free Cash Flow per Share | -$2.50 | Monexa AI |
Analyst Estimates for Edison International (EIX)#
| Year | Estimated Revenue (Avg) | Estimated EPS (Avg) | Number of Analysts |
|---|---|---|---|
| 2025 | $18.01 Billion | $5.70 | 10 |
| 2026 | $18.71 Billion | $6.05 | 6 |
| 2027 | $19.94 Billion | $6.44 | 3 |
| 2028 | $19.92 Billion | $6.92 | 1 |
The Future of Edison International: Challenges and Opportunities#
The future of Edison International EIX is uncertain, but the company has the potential to overcome its challenges and thrive in the evolving energy landscape. The company must effectively manage its legal challenges, improve its financial performance, and transition to a clean energy future.
The challenges facing Edison International EIX are significant, but the company also has opportunities to capitalize on the growing demand for clean energy, the need for grid modernization, and the potential for innovation and efficiency gains. By embracing these opportunities and addressing its challenges effectively, EIX can position itself for long-term success and create value for its stakeholders.
The company's future success will depend on its ability to adapt to changing market conditions, navigate the complex regulatory landscape, and maintain a strong commitment to sustainability and stakeholder engagement. The next few years will be critical in determining the future trajectory of Edison International EIX and its role in the California utility market.