PG&E Will Cut Power to 70,000 California Customers
The utility plans preventive power shutoffs across 29 counties to reduce wildfire risks through Saturday.
Updated on Oct. 14, 2026 in Utilities
Live Poll
Should insurance policies be required to cover income losses caused by preventive power shutoffs?
Pacific Gas & Electric announced planned power shutoffs affecting 70,000 customers in 29 California counties. The outages are scheduled to occur between Wednesday and Saturday of this week to reduce wildfire ignition risks during high-wind conditions.
Why it matters
Utilities cut power as a preventive measure to reduce wildfire ignition risks during high-wind conditions, but business owners face potential revenue losses and ongoing costs without insurance coverage during these events.
The upcoming shutoffs impact 70,000 customers across 29 counties, compared to a smaller event last weekend that affected 12,200 customers in 17 counties. Some parametric insurance products designed to mitigate these gaps carry minimum premiums starting at $25,000.
The players
Pacific Gas & Electric
This major utility company serves a large portion of northern and central California and manages power infrastructure.
Public Utilities Commission
This state regulatory body oversees the delivery of essential services including energy and telecommunications.
The details
Insurance brokers report that standard business interruption policies typically require physical property damage to trigger coverage, leaving many businesses exposed to losses from these preventive measures. Brokers are currently reviewing client operations to identify potential coverage gaps.
Timeline
The Public Utilities Commission first issued guidance for public safety power shutoffs in 2012.
The largest power shutoff event in California history occurred in 2019 and affected 700,000 customers.
A prior shutoff event affected 12,200 customers across 17 counties during the previous weekend.
Planned power shutoffs are scheduled to occur from Wednesday, October 14, through Saturday, October 17, 2026.
Market Landscape
The utility continues to operate under the Public Utilities Commission public safety power shutoff guidance established in 2012. These preventive measures reflect a broader industry shift toward prioritized wildfire mitigation over continuous service delivery.
Business owners should contact their insurance providers immediately to determine if their policies cover losses related to preventive power outages. Because standard policies often require physical property damage, owners may need to evaluate the feasibility of alternative parametric insurance products.
The takeaway
Business owners are encouraged to review their existing insurance contracts to understand specific exclusions regarding non-physical damage business interruptions. Proactive engagement with insurance brokers can help identify specialized coverage options that might mitigate future financial risks during utility-led shutoffs.
Further reading
For more on the regulatory environment governing energy providers, visit the Utilities section.
Source note: This article includes information reported by Insurance Business.
Live Poll
Should insurance policies be required to cover income losses caused by preventive power shutoffs?
