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Climate risks are bearing down on American utilities, especially in California. Rain may help, says Barclays

Much-needed California rain this week may provide some relief in tough year

A forest of burned, ashen trees in Hot Springs, Calif.

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Extreme weather, drought and mammoth wildfires ravaged the U.S. again this year, deepening the economic toll of climate risks and making it harder for investors and utilities to ignore.

This year alone, 15%-20% of U.S. investment-grade utilities have taken a direct hit from extreme weather events, while half of those classified as “junk” or high-yield have been impacted, according to a new Barclays report.

Barclays...