Edison International and other utilities are expected to trade at a wider discount to the benchmark S&P 500 utilities index than before as wildfires burning across California underscore the risks of natural disasters on their businesses,

The decline comes as multiple large fires are burning around Los Angeles, with strong winds in the forecast that could make them difficult to contain.

Edison International (NYSE:EIX) settled -10.2% on Wednesday, after plunging as much as 13% to its lowest level in nine months, on fear and uncertainty over the wildfires in southern California; SoCal Edison is the power utility for the areas directly surrounding the city of Los Angeles.