PG&E Will Cut Power to 70,000 Customers This Week
Business owners in 29 California counties will face operational interruptions as the utility initiates wildfire prevention measures.
Updated on Oct. 14, 2026 in Utilities
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Should insurance policies be required to cover income losses caused by preventive power shutoffs?
Pacific Gas & Electric plans to shut off power for 70,000 customers across 29 California counties between Wednesday and Saturday of this week. These preventive measures are designed to mitigate wildfire risk during periods of high winds.
Why it matters
Utilities cut power to lower ignition risks during extreme weather, creating significant revenue and operational losses for companies without specific coverage. Operators must navigate these interruptions as standard insurance policies often fail to cover non-physical damage.
Pacific Gas & Electric is targeting 70,000 customers across 29 California counties, an increase from the 12,200 customers impacted in 17 counties last weekend. Some business owners are exploring parametric insurance, though these products currently carry minimum premiums of $25,000.
The players
Pacific Gas & Electric
A major California utility company responsible for the transmission and distribution of electricity across large swaths of the state.
Public Utilities Commission
The California regulatory body that oversees utility operations and establishes guidelines for public safety power shutoffs.
The details
Utilities trigger these shutoffs to minimize wildfire risks in dry, gusty environments. Insurance brokers note that standard business interruption policies generally require physical property damage to trigger a payout, leaving many businesses exposed to losses from preventive outages. Owners are advised to consult with counsel or brokers to review policy language for potential coverage gaps or to assess the viability of alternative risk-transfer products.
Timeline
2012: Public Utilities Commission issued first power shutoff guidance.
2019: Historical event affected 700,000 customers.
October 2026 (previous weekend): 12,200 customers across 17 counties experienced shutoffs.
October 14-17, 2026: Planned power shutoffs scheduled Wednesday through Saturday.
Market Landscape
The current shutoffs follow the regulatory framework set by the Public Utilities Commission's 2012 public safety power shutoff guidance. This event highlights the ongoing operational challenge of mitigating wildfire risk in California.
Business owners should prepare for immediate revenue loss and assess their existing insurance policies for coverage of non-physical damage. Consult with a qualified insurance broker to determine if parametric products are a suitable, albeit costly, hedge against future preventive utility outages.
The takeaway
The move underscores that utilities will continue to prioritize fire prevention over consistent service, making weather-related shutdowns an expected business risk. Review your current insurance language with counsel to confirm if power-loss exclusions exist and identify if backup power systems are a necessary capital expenditure.
Further reading
For broader insight into regional infrastructure management, see Utilities.
Source note: This article includes information reported by Insurance Business.
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Should insurance policies be required to cover income losses caused by preventive power shutoffs?
