** Shares of utility firm Edison International EIX.N down 8.5% to $70.81, and falling for fourth straight session on Weds, as wildfires rage out of control near Los Angeles

** EIX shares hit lowest levels since May and on track for biggest one-day pct drop since COVID pandemic onset in Mar 2020

** Powerful winds fueling devastating fires, forcing tens of thousands to evacuate homes and scorching buildings and hillsides

** EIX subsidiary, Southern California Edison, has shut power to over 110,000 customers to prevent damage to distribution lines from the wildfire, co said on Weds

** Jefferies in note says investors remain nervous "given the lack of containment with a 'sell first, ask questions later' mindset"

** But Jefferies, which rates EIX 'buy', adds it "remains comfortable" due to the AB 1054 liability protections that limits the tail risks for utilities

** Meanwhile, shares of California utility PG&E Corp PCG.N off nearly 4% on the session. Co, which in 2020 emerged from a bankruptcy prompted by deadly blazes linked to its equipment, was offered a $15 bln loan last month by the U.S. DOE to bolster the power grid

** Including move on Weds, EIX shares down 11% to start 2025, after 12% gain in 2024

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))