July 31 (Reuters) - Edison International ( EIX )

reported a fall in second-quarter profit on Thursday, as the

utility grappled with higher operating expenses while facing

investigations related to the Los Angeles wildfires earlier this

year.

Multiple wildfires in January scorched tens of thousands of

acres across Los Angeles in what is expected to have been the

most costly natural disaster in U.S. history, and the area's

electric utilities have come under increasing scrutiny.

While wildfires can cause extensive power outages by

damaging power lines and infrastructure, they can also originate

from these power lines.

Southern California Edison (SCE), Edison International's ( EIX )

subsidiary, is facing multiple lawsuits, which allege that its

electrical equipment started one of the major wildfires in the

Los Angeles area - the Eaton fire.

While investigations into the cause of the Eaton Fire are

going on, lawsuits have honed in on SCE transmission

infrastructure in the hills above the community of Altadena as

starting the blaze.

"SCE is not aware of evidence pointing to another possible

source of ignition," Edison CEO Pedro Pizarro said on a company

earnings call. "Absent additional evidence, we believe that SCE

equipment could have been associated with the ignition."

The company attributed the earnings decline primarily to

higher operations and maintenance expenses and the net impact of

regulatory decisions at Southern California Edison (SCE). Higher

interest expenses at the parent company level also contributed

to the decrease.

SCE said it expected to invest $6.2 billion to prevent

wildfires being caused by, or affecting, its system.

The company also plans to launch a wildfire recovery

compensation program.

California has a wildfire fund that protects utilities like

SCE from wildfire liability. On Wednesday, Bloomberg News

reported that California Governor Gavin Newsom was proposing

legislation to bolster the state's fund with an additional $18

billion for utilities.

Electricity ratepayers would contribute half the money

through a monthly fee while the other half would be funded by

utility companies that benefit from the fund, including Edison

International ( EIX ), the report said.

The company reaffirmed its forecast for adjusted earnings

between $5.94 per share and $6.34 per share for 2025. Analysts

expect $6.06 per share.

The Rosemead, California-based company, posted

second-quarter net income of $343 million, or 89 cents per

share, compared with $385 million, or $1.14 per share, a year

earlier.