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Ongoing Power Disruptions Threaten Immediate Business Operations Across Hawaii

·7 min read·⚡ Act Now

Executive Summary

Hawaiian Electric's ongoing power restoration efforts create immediate operational risks for businesses statewide, necessitating proactive contingency measures. Failure to plan for prolonged outages could lead to significant revenue loss and productivity decline within hours.

  • Small Business Operators: Face immediate revenue loss, spoiled inventory, and potential equipment damage; need backup power solutions.
  • Tourism Operators: Risk significant guest dissatisfaction, booking cancellations, and reputational damage.
  • Healthcare Providers: Critical services are at risk; require fully vetted backup power and communication protocols.
  • Agriculture & Food Producers: Perishable goods spoilage is imminent; need immediate cold storage solutions.
  • Action: All affected roles must activate emergency power plans and assess communication redundancies immediately.

Action Required

High Priority

Ongoing power restoration efforts may continue to affect business operations, and failure to plan for disruptions could lead to significant lost revenue and productivity.

All affected business roles must immediately activate their emergency power plans, verify backup generator functionality and fuel reserves, and establish redundant communication channels. For businesses with perishable inventory or critical services (healthcare), immediate steps to protect assets or ensure continuity must be taken within the next 24 hours. Real estate owners should confirm building system readiness and communicate proactively with tenants. Tourism operators must prioritize guest communication and service contingency plans.

Who's Affected
Small Business OperatorsReal Estate OwnersTourism OperatorsEntrepreneurs & StartupsAgriculture & Food ProducersHealthcare Providers
Ripple Effects
  • →Power outage → spoiled perishable inventory → increased food waste and financial loss for agriculture/food producers
  • →Power outage → operational paralysis for tourism operators → negative guest experiences and potential booking cancellations → reduced visitor arrivals
  • →Power outage → disruption of critical healthcare services → potential patient harm and increased strain on emergency services
  • →Prolonged outages → ripple effect on supply chains → potential shortages and 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 Threaten Immediate Business Operations Across Hawaii

Hawaiian Electric (HECO) is actively working to restore power across Honolulu, Maui, and Hawaiʻi Counties as of March 17th, 2026. While restoration efforts are underway, the duration and scope of ongoing power outages present immediate and significant operational risks for a wide range of businesses. Businesses that do not have robust contingency plans for electricity disruptions face an imminent threat to revenue, productivity, and critical service delivery.

Who's Affected

Small Business Operators (small-operator)

Immediate impacts include:

  • Lost Revenue: Service businesses, retail shops, and restaurants unable to operate will experience direct revenue loss for every hour of outage.
  • Spoiled Inventory: Refrigerated and frozen goods, particularly in the food service industry, are at high risk of spoilage, leading to direct financial loss.
  • Staffing Disruptions: Inability to operate may lead to temporary staff layoffs or reduced hours, impacting employee morale and future scheduling.
  • Equipment Damage: Power surges or fluctuations during restoration can damage sensitive electronic equipment, leading to costly repairs or replacements.

Real Estate Owners (real-estate)

While direct revenue loss may be less immediate than for operators, property owners face:

  • Tenant Issues: Inability to provide essential services (lighting, HVAC, elevators) can lead to tenant dissatisfaction and potential lease disputes.
  • Property Damage: Extended outages can impact critical building systems, potentially leading to water damage (if pumps fail) or HVAC system failures.
  • Reputational Risk: Frequent or prolonged outages can make properties less attractive for future tenants or buyers.

Tourism Operators (tourism-operator)

For hotels, tour companies, and vacation rentals, the consequences are severe and immediate:

  • Guest Experience Degradation: Lack of lighting, HVAC, Wi-fi, and hot water severely impacts guest satisfaction and can lead to complaints, refunds, and negative reviews.
  • Operational Paralysis: Check-ins, check-outs, food and beverage services, and entertainment can be crippled.
  • Booking Cancellations: Upcoming reservations may be cancelled if guests anticipate service disruptions.
  • Reputational Damage: Negative online reviews stemming from an outage can deter future bookings.

Entrepreneurs & Startups (entrepreneur)

Early-stage companies, often with lean operations, are particularly vulnerable:

  • Lost Productivity: Devicess, servers, and communication systems may go offline, halting development, customer service, and sales efforts.
  • Data Loss: Unsaved work or system corruption can occur if equipment shuts down unexpectedly and without proper data backup.
  • Client Confidence: Inability to respond to clients or deliver services can erode trust and jeopardize funding or partnerships.

Agriculture & Food Producers (agriculture)

This sector faces the most direct threat to perishable goods:

  • Mass Spoilage: Refrigerated storage for produce, dairy, meat, and aquaculture is critical. Extended outages can lead to the complete loss of harvested crops or livestock products.
  • Irrigation/Processing Stoppage: Pumping and processing operations reliant on electricity will halt, potentially impacting crop health and production schedules.
  • Supply Chain Disruption: Inability to process or refrigerate goods impacts delivery to markets and consumers.

Healthcare Providers (healthcare)

Critical services are at immediate risk, with potentially life-threatening implications:

  • Patient Care Interruption: Medical equipment reliant on electricity (e.g., life support, diagnostic machines, refrigeration for medications/vaccines) is endangered. Backup generators must be functional and fueled.
  • Telehealth Inoperability: Remote patient monitoring and virtual consultations will cease without reliable power and internet.
  • Communication Failures: Internal and external communication systems may fail, hindering emergency response and coordination.
  • Medication/Vaccine Spoilage: Refrigerated pharmaceuticals and vaccines are at risk.

Second-Order Effects

Extended power outages, especially in island economies with limited logistical alternatives, trigger a cascade of negative consequences:

  • Immediate Revenue Loss: Businesses unable to operate directly lose income.
  • Increased Operational Costs: Need for emergency generators, fuel, and potential product replacement (spoiled inventory) drives up immediate expenses.
  • Supply Chain Bottlenecks: If multiple food producers or distributors are affected, shortages can arise at the retail level, potentially increasing consumer prices for available goods.
  • Tourism Impact: Negative guest experiences from power outages can lead to reduced future bookings, impacting Hawaii's primary economic driver and potentially leading to job losses in the hospitality sector.
  • Reduced Consumer Spending: For individuals working in affected businesses or facing personal losses, discretionary spending decreases, impacting other local businesses.

What to Do

For all affected roles: Immediate Action is Required.

Given the ongoing nature of HECO's restoration efforts, businesses must assume power may not be restored uniformly or quickly. The focus must be on immediate mitigation and operational continuity.

Small Business Operators:

  1. Activate Emergency Power Plan: If you have a backup generator, ensure it is functional, fueled, and capable of running essential equipment (refrigeration, point-of-sale systems, critical lighting).
  2. Inventory Protection: For food businesses, shift perishable items to any available backup refrigeration or off-site cold storage if feasible. If not, assess potential losses and notify suppliers/customers.
  3. Communication Redundancy: Ensure you have alternative communication methods (e.g., mobile hotspots, charged satellite phones if applicable) to stay informed and communicate with staff and customers.
  4. Staffing Assessment: Communicate with your team regarding operational status and schedule adjustments. Prioritize employee safety.
  5. Review Insurance: Familiarize yourself with your business interruption insurance policy and document all losses.
  • Action: Activate backup power systems and communication redundancies immediately. Document all operational disruptions and inventory losses as they occur. Review business interruption insurance policies within the next 48 hours.

Real Estate Owners:

  1. Building System Checks: If a generator exists for common areas, confirm its status, fuel levels, and ability to power essential services (elevators, emergency lighting, fire suppression systems).
  2. Tenant Communication: Proactively communicate with tenants about the outage status, HECO updates, and any building-specific mitigation efforts. Address concerns about essential services.
  3. Assess Potential Damage: For properties with critical infrastructure (e.g., data centers, cold storage facilities), assess the impact of the outage on tenant operations and potential liability.
  • Action: Confirm generator functionality for essential building services and initiate proactive tenant communication within 12 hours. Document any reported tenant impacts or potential building system issues.

Tourism Operators:

  1. Guest Communication: Inform guests immediately about the situation, expected duration (if known), and mitigation efforts. Manage expectations transparently.
  2. Backup Power Verification: If backup generators exist, confirm their functionality and fuel reserves for guest-facing amenities (lighting, HVAC, essential communications).
  3. Service Interruption Plan: Develop contingency plans for food service, guest activities, and check-in/check-out processes. Consider offering discounts or amenities to affected guests.
  4. Staff Briefing: Ensure staff are informed, prepared to handle guest concerns, and know the operational plan.
  • Action: Prioritize guest communication and verification of backup power for critical guest services immediately. Implement contingency plans for all disrupted services within 24 hours.

Entrepreneurs & Startups:

  1. Data Backup & Recovery: Ensure all critical data is backed up to cloud services or external drives that are not dependent on local power. Test recovery procedures.
  2. Alternative Workspaces: Identify and prepare alternative work locations (e.g., co-working spaces with generators, remote work options with reliable mobile data).
  3. Communication Channels: Establish backup communication methods for your team and key stakeholders.
  4. Client Notification: Inform clients and partners of potential service disruptions.
  • Action: Verify cloud data backups and activate alternative communication methods for your team immediately. If clients are affected, notify them within 12 hours.

Agriculture & Food Producers:

  1. Cold Storage Assessment: Immediately assess the status of all refrigerated and frozen storage. If generators are available, ensure they are operational and fueled for at least 72 hours.
  2. Inventory Relocation/Sale: If backup power is insufficient, explore options for rapid sale or relocation of highly perishable inventory to facilities with confirmed power.
  3. Water/Processing Operations: Determine the impact on irrigation and processing lines and adjust schedules accordingly.
  4. Supply Chain Communication: Notify distributors and buyers of potential delays or spoilage.
  • Action: Conduct an immediate audit of cold storage capacity and generator readiness. Explore all options for preserving or rapidly liquidating perishable inventory within 24 hours.

Healthcare Providers:

  1. Critical Equipment Backup Verification: Confirm that all life-support, diagnostic, and critical medication storage equipment is connected to functional, tested backup generators with sufficient fuel for at least 72 hours.
  2. Communication System Redundancy: Ensure backup communication systems (satellite phones, dedicated mobile lines) are operational for internal and external emergency coordination.
  3. Telehealth Contingency: Have a plan to notify telehealth patients of potential disruptions and reschedule if necessary.
  4. Emergency Staffing Plan: Review and activate emergency staffing protocols if staff cannot reach facilities due to widespread disruption.
  • Action: Immediately verify the operational status and fuel reserves of all backup generators powering critical medical equipment and communication systems. Implement emergency communication protocols within 6 hours.

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