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Multi-Island Power Outages Prompt Contingency Planning for Hawaii Businesses

·7 min read·👀 Watch

Executive Summary

Ongoing power restoration efforts by Hawaiian Electric across multiple islands present immediate operational risks and necessitate proactive contingency measures for businesses. Failure to prepare for extended outages could lead to significant financial losses, spoiled inventory, and service disruptions.

  • Small Business Operators: Risk of lost revenue from service interruption, spoiled inventory, and increased operating costs due to backup power.
  • Tourism Operators: Potential for guest dissatisfaction, canceled bookings, and reduced on-site service delivery.
  • Real Estate Owners: Disruption to tenants, potential damage to property infrastructure, and increased maintenance burdens.
  • Agriculture & Food Producers: Loss of perishable goods, disruption to irrigation and processing, and potential spoilage of stored products.
  • Action: Review and test business continuity plans for power-related disruptions.

Watch & Prepare

High Priority

Continued power outages will disrupt business operations, spoil inventory, and prevent service delivery, potentially causing significant financial losses if not managed.

Monitor Hawaiian Electric's [outage map](https://outagemap.hawaiianelectric.com/) and official communications for restoration progress across affected islands. If estimated restoration times for your area are extended beyond 48 hours, immediately activate your business continuity plan, focusing on securing critical inventory and operations, and communicate proactively with staff and customers. Ensure BCPs are reviewed and updated annually.

Who's Affected
Small Business OperatorsTourism OperatorsReal Estate OwnersAgriculture & Food Producers
Ripple Effects
  • →Extended power outages → disruption of critical business services (refrigeration, communication, operational technology) → significant inventory and revenue loss for small businesses → reduced tax revenue for counties → decreased public services and slower infrastructure repair → increased economic vulnerability and potential business closures.
  • →Service disruptions for tourism operators → decreased guest satisfaction and negative reviews → potential decline in future bookings → reduced visitor spending impacting multiple Hawaii industries.
  • →Impact on agricultural operations (irrigation, cold storage) → spoilage of perishable goods → reduced local food supply and potential price increases for consumers.
Utility workers assess and fix downed power lines on a sunny day, ensuring safety and service restoration.
Photo by Denniz Futalan

Ongoing Power Disruptions Require Business Continuity Review

Hawaiian Electric (HECO) continues restoration efforts following widespread power outages affecting Honolulu, Maui, and Hawaiʻi Counties as of March 16, 2026. While restoration is ongoing, the prolonged nature of these outages, impacting an estimated 15,000 customers at the time of reporting, poses significant operational risks to businesses across the state. This situation underscores the vulnerability of Hawaii’s businesses to infrastructure failures and the critical need for robust contingency planning.

Who's Affected

Small Business Operators: Businesses reliant on electricity, such as restaurants, retail stores, and service providers, face immediate threats of revenue loss due to service interruptions. Inventory spoilage, particularly for food and beverage establishments, is a major concern. Operations requiring refrigeration, digital point-of-sale systems, or customer-facing technology will be significantly hampered. The cost of operating backup generators, if available, can also escalate expenses.

Tourism Operators: Hotels and other hospitality businesses are susceptible to guest complaints and potential booking cancellations if amenities like air conditioning, internet, and hot water are unavailable. Tour companies may be forced to cancel excursions, leading to lost revenue and reputational damage. Vacation rental properties are particularly vulnerable, as guests expect full functionality, and prolonged outages can lead to refunds or negative reviews.

Real Estate Owners: Property managers and landlords must contend with tenant concerns and potential lease violations if essential services are interrupted. The infrastructure supporting commercial and residential buildings, including elevators, HVAC systems, and security, relies on consistent power. In agricultural areas, prolonged outages could impact irrigation systems and cold storage.

Agriculture & Food Producers: Farms, fisheries, and food production facilities face severe risks from power loss. Essential operations like irrigation pumps, climate control in greenhouses, processing machinery, and cold storage for harvested goods are all electricity-dependent. The potential for widespread spoilage of perishable goods represents a direct and substantial financial loss.

Second-Order Effects

Extended power outages can trigger a cascade of negative impacts within Hawaii's island economy. Reduced business operations lead to decreased consumer spending, which can strain retail and service sectors. Tourism operators facing service disruptions could see a decline in visitor satisfaction, potentially impacting future bookings and Hawaii's reputation as a reliable destination. Furthermore, emergency response strains on limited resources could be exacerbated, affecting public safety and utility repair timelines. The reliance on imported goods and the complex supply chains in Hawaii mean that disruptions to local businesses can have wider implications for availability and pricing across multiple sectors.

A potential ripple effect: Continued power outages → disruption of critical business services (refrigeration, communication, operations) → significant inventory and revenue loss for small businesses → reduced tax revenue for counties → decreased public services and slower infrastructure repair → increased economic vulnerability and potential business closures.

What to Do

As the power restoration process continues, businesses should treat this as an active risk scenario requiring immediate attention. While HECO is working diligently, extended outages remain a possibility given the scale of the disruptions.

Small Business Operators:

  • Review and test your business continuity plan (BCP), specifically for extended power loss scenarios. Ensure backup power sources (generators, portable batteries) are operational and adequately fueled.
  • Secure perishable inventory: Implement emergency procedures for temperature-sensitive goods, such as transferring stock to alternative locations with power or utilizing portable cooling solutions.
  • Communicate with staff and customers: Have a plan for informing employees about operational status and customers about potential service disruptions or changes.

Tourism Operators:

  • Proactively communicate with guests: Inform guests about the current situation and any impact on hotel amenities or tour schedules. Offer solutions or compensation where feasible.
  • Assess backup power capabilities: Review generator capacity and fuel reserves for critical hotel functions (e.g., essential lighting, refrigeration, limited HVAC).
  • Develop flexible scheduling: For tour operators, have contingency plans for rescheduling or modifying tours based on power availability and safety.

Real Estate Owners:

  • Coordinate with HECO: Stay informed about restoration timelines and communicate updates to tenants.
  • Check critical infrastructure: Inspect building systems (elevators, HVAC, life safety) for potential damage or issues exacerbated by power fluctuations.
  • Support tenant needs: Understand tenant's critical operations and offer, where possible, temporary solutions or flexibility.

Agriculture & Food Producers:

  • Check cold storage and irrigation: Prioritize power for critical systems. Have manual or backup options ready for irrigation and temperature control.
  • Inventory perishables: Assess the risk to stored and harvested goods. Consider immediate sale, donation, or alternative storage if spoilage is imminent.
  • Monitor weather forecasts: Be aware of any additional environmental factors that could compound power loss impacts.

Action Details: Businesses should monitor HECO's outage map and official communications for restoration progress. Trigger condition for escalating action: If estimated restoration times are extended beyond 24-48 hours for your specific area, activate dormant BCP measures and consider temporary relocation of critical operations or inventory. File this briefing for future reference as a reminder to review and update BCPs annually.

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