To help prevent wildfires during extreme weather conditions, California electric utility companies have adopted the use of Public Safety Power Shutoffs (PSPS). Beginning in 2017, PSPS have been utilized to reduce the risk of fires caused by electric infrastructure by temporarily turning off power to specific areas. PSPS events are generally considered “last resort” efforts in response to extreme wildfire risk in the area.

For example, high winds and downed trees can disrupt electrical lines, possibly igniting fires. Also called “de-energization,” PSPS is particularly important as a preventive measure during the Santa Ana fire season (October to March) and the summer fire season (June to September).

PSPS events can often be highly disruptive to commercial businesses located downstream from the de-energized circuit. Future electric utility improvements for PSPS events include grid hardening, including vegetation control, conductor covering/shielding, establishing mobile and fixed microgrids, as well as advanced artificial intelligence driven weather mapping and grid monitoring to reduce PSPS interruptions to customers.

This article will focus on new risk mitigation and preparation efforts for your business. The information applies to California’s largest electric utility providers, including Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric. Multi-state electric utility providers operating in and out of California such as Rocky Mountain Power and Pacific Power have developed PSPS policies as well. Other regional electric power utility providers not covered in this article may have PSPS policies already implemented or in development. Check with your electric utility provider for PSPS policies that may affect your business.

The areas of California most likely to have a PSPS are those with Tier 2 and Tier 3 fire threats shown on the map below:

Beginning with the 2019 wildfire season, electric utilities expanded their PSPS programs to include all electric lines, both distribution and transmission⁠, that pass-through areas at high risk for fires.

Electric utility circuits with a high likelihood for PSPS related interruption include those that are paxss-through areas designated by the California Public Utilities Commission (CPUC) as elevated (Tier 2) or extreme (Tier 3) risk for wildfire.

Electric utilities will call a PSPS when gusty winds combine with a heightened fire risk. Electric company officials monitor conditions across their systems and evaluate whether to turn off electric lines proactively. While no single factor will drive a PSPS, it typically is a combination of factors, including the following:

No special consideration applies to critical users (like hospitals) since fire safety is considered a more significant concern than a power outage.

Whenever possible, electric utility companies will provide customers with advance notice of PSPS. However, extreme weather threats can change quickly. Customers can register for notifications and updates about when power will be restored at prepareforpowerdown.com.

An example schedule for customer notification of a PSPS is as follows:

Electric utilities also attempt to provide advance notice of shutoffs through online forest mapping, and through cities, counties, and other agencies through the following means:

Electric utility companies will restore power when they are certain it is safe to do so. They expect to be able to visually inspect for damage and restore power to most of their customers within 24 to 48 hours after extreme weather has passed.

Here are the steps they follow before restoring power:

Although they are disruptive to your business, PSPS fall outside insurable risk for which property carriers can quantify and rate.

Business continuity plans and loss control measures will offer a more fruitful risk management approach, and Woodruff Sawyer property loss control experts are available to discuss your specific concerns. For insureds fearing irreparable financial harm, please contact a member of your team to explore risk transfer alternatives.

Here are some factors to keep in mind as you plan for PSPS:

Finally, we encourage clients to take the following preventive steps to help minimize disruptions from PSPS:

In addition to prepareforpowerdown.com, which provides PSPS information for California’s three largest investor-owned utilities (Pacific Gas and Electric, Southern California Edison, and San Diego Gas & Electric), here are some other valuable PSPS resources.

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