Legal experts suggest the nation’s largest municipal utility will face paying damages to homeowners after fire crews were left without enough water.

A spokesperson for the L.A. Department of Water and Power said water continues to be tested daily for safe drinking use and that the caution remains in the Pacific Palisades area. And Pasadena Water and Power officials on Monday extended the Do-Not-Drink-Water Notice due to facilities that were affected by the Eaton Fire.

The Los Angeles Department of Water and Power is investigating whether an empty reservoir led to the failure of its water system during the deadly Palisades Fire. Several fire hydrants ran dry during the peak of the firefight on January 7th and 8th.

The municipal bond market's initial negative reaction to this month's Southern California wildfires has eased, with secondary spreads starting to tighten.