Power Disruptions Threaten West Maui Operations
West Maui experienced significant power outages impacting approximately 10,000 customers on Monday night, extending into Tuesday. These disruptions are compounded by the ongoing threat of Public Safety Power Shutoffs (PSPS) being monitored by Hawaiian Electric due to high wildfire risk. Such events signal an increased likelihood of preemptive de-energization in other areas of Maui, including Upcountry, and potentially Hawaiʻi Island, impacting the reliability of essential services for businesses operating in these regions.
Who's Affected
- Small Business Operators: Businesses in West Maui have faced immediate operational halts, leading to lost revenue and potential spoilage of perishable goods. The threat of PSPS in other areas means businesses must anticipate and prepare for sudden, extended periods without power, affecting staffing, customer service, and appointment-based operations. This also increases the risk of equipment damage from power surges during restoration.
- Tourism Operators: Hotels, vacation rentals, and tour companies in West Maui are directly impacted by customer inconvenience, potential booking cancellations, and reputational damage. The broader threat of PSPS means that even businesses not experiencing immediate outages must consider how disruptions will affect guest experiences, transportation, and communication. Extended outages can lead to guest dissatisfaction and impact future bookings.
- Agriculture & Food Producers: For farms and food processing facilities, power outages can be catastrophic, leading to the loss of temperature-sensitive inventory, damage to critical processing equipment, and disruption of irrigation systems. PSPS threats require robust backup power solutions for refrigeration and operational continuity.
- Real Estate Owners: Property owners and managers, particularly those with commercial or hospitality tenants, must consider the cascading effects of power disruptions. This includes potential property damage from the outages themselves, tenant business interruptions, and increased tenant demand for reliable backup power solutions. Insurance policies may need review for coverage related to business interruption due to utility failures.
Second-Order Effects
Recurring power disruptions and the threat of PSPS can subtly reintroduce inefficiencies into Hawaii's fragile supply chain. Extended outages in key tourist areas like West Maui can reduce visitor spending, which in turn may decrease demand for local goods and services, impacting agricultural producers and small businesses. Furthermore, the need for businesses to invest in costly backup power solutions can increase operating expenses, potentially leading to higher prices for consumers and reduced competitiveness for tourism operators. This also puts additional strain on infrastructure, potentially increasing the frequency and duration of future issues.
What to Do
The unpredictable nature of weather-driven power disruptions requires a proactive "watch and prepare" stance. The immediate action for all affected businesses is to ensure robust contingency plans are in place and tested.
- Small Business Operators: Review and update emergency preparedness plans. Ensure critical business functions can operate for at least 24-48 hours without grid power. This includes backup power for essential equipment (POS systems, refrigeration, IT), alternative communication methods, and a clear protocol for staff and customer safety during outages.
- Tourism Operators: Fortify guest communication strategies to provide timely updates during outages. Develop partnerships for temporary generator rentals if not already in place. Train staff on managing guest expectations and alternative service delivery methods during disruptions.
- Agriculture & Food Producers: Verify the functionality and fuel levels of backup generators for cold storage and critical processing equipment. Develop protocols for managing inventory in the event of prolonged power loss.
- Real Estate Owners: Communicate with tenants about existing backup power capabilities and evacuation plans. Assess the need for enhanced backup power solutions for common areas or critical building systems, especially for properties housing essential services or large numbers of residents/guests.
