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

ongoing investigations related to the Los Angeles wildfires

earlier this year.

Multiple wildfires scorched tens of thousands of acres

across Los Angeles in what is expected to be 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, if not properly maintained.

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.

According to a Reuters report in June, SCE's internal

wildfire forecasts underestimated the potential size of the

Eaton Canyon fire in Los Angeles by a factor of ten in the days

leading up to a deadly conflagration in January.

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.

The company also plans to

launch

a wildfire recovery compensation program.

The company reaffirmed its forecast for adjusted earnings

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

have estimated them at $6.06 per share.

"We remain confident that policymakers will act to

strengthen and restore confidence in California's wildfire

framework during the current legislative session," Edison CEO

Pedro Pizarro said in a statement.

The Rosemead, California-based company posted a net income

of $343 million, or 89 cents per share in the second quarter,

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