California legislation limiting utility rate pass-throughs and requiring faster payouts reduces EIX profitability, leading to a significant drop in its stock price.

PC, Pacific Gas and Electric here, PCG is getting trounced along with EIX. These are both uh utilities out of California. And really what's going on here is that new legislation was passed that essentially they can't pass on rate hikes as much as they want.

And also that, you know, people that have problems like their house burns down, the payouts have to be made sooner. And so essentially more restrictions on utilities that essentially will hamper their their profitability.

A lot of this is stemming, in my opinion, from basically data centers, right? So data centers driving up utility costs and you're starting to see California enact legislation to keep these electric companies from passing those rate hikes just continually on to the consumer.

Now again, maybe that's a good thing. It's more backlash against the data centers and what it's doing to consumers and forcing up costs and inflation, right? But again, it is trouncing these stock prices today.

You can see EIX Edison International big drop as well this morning in the pre-market. We have to zoom out to see and you can see I have old lines here as well. But we're trading down in this range.

I would start getting maybe interested. There's a little bit of a gap fill pivot around 5576 or so right here. And then really we could go as low as 52 um down here.

So I'm not sure if I'll trade this first one. Price is so close I'd be worried it's going to flush it. But once we get down to around 52, I do think there's a fair amount of support as low as 48 down here at a double bottom.

For trading purposes, day trading, I'm focusing in on PCG and EIX here early in the day.