West Maui Businesses Face Ongoing Risk Assessment After Power Restoration; Potential for Future Outages Remains

Power has been restored to over 10,000 customers in West Maui following precautionary shutoffs implemented due to high wildfire risk. While service is back online, Hawaiian Electric (HECO) crews are continuing damage assessments and repairs. This situation underscores the ongoing vulnerability of businesses in high-risk areas to utility disruptions, impacting operational continuity and requiring proactive risk management.

Who's Affected

• Small Business Operators (restaurants, retail, service providers): While immediate operations are normalized, the underlying risk of future shutoffs demands a review of backup power solutions and contingency plans. The extended outage previously disrupted supply chains and customer access, highlighting the need for resilience.
• Tourism Operators (hotels, tour companies, vacation rentals): The restoration is critical for guest experience and operational capacity. However, the potential for future preemptive shutoffs requires communication strategies with guests regarding service interruptions and the need for flexibility in bookings and services.
• Real Estate Owners (property managers, landlords, developers): Properties in wildfire-prone zones are subject to increased risk of infrastructure damage and prolonged power outages. This could impact tenant relations, property value, and insurance premiums. Ongoing assessments by HECO may lead to infrastructure upgrades, potentially incurring costs or temporary access restrictions.

Second-Order Effects

The prolonged reliance on HECO for essential services means power disruptions, even temporary ones, can cascade through Maui's economy. A localized but significant power outage can lead to:

• Restauranteurs facing spoiled inventory and inability to serve customers, resulting in direct revenue loss.
• Hotels needing to activate backup generators, increasing operating costs, and potentially limiting services for guests.
• Damage to critical infrastructure like water pumps or communication towers, requiring costly repairs and further extending service interruptions.
• Increased demand for portable generators and alternative power solutions, potentially driving up prices for these essential business continuity tools.

What to Do

Action: Watch Hawaiian Electric updates and local emergency advisories for indicators of future risk and potential shutoffs.

• Small Business Operators: Monitor [Hawaiian Electric]'s (https://www.hawaiianelectric.com/) public safety shutoff advisories and local emergency management agency communications. Assess the feasibility and cost of investing in backup generators or battery storage solutions, especially if your business relies heavily on refrigeration, IT systems, or continuous operation. Archive any business interruption claims or related operational logs from recent outages for potential insurance or grant applications.

• Tourism Operators: Stay informed about HECO's wildfire risk assessments and potential Public Safety Power Shutoff (PSPS) schedules. Develop clear guest communication protocols for potential service disruptions, including information on backup power availability and alternative arrangements. Review third-party booking agreements to understand force majeure clauses related to utility service interruptions.

• Real Estate Owners: Track updates from Maui County Emergency Management Agency regarding wildfire risk and utility operations. Consult with insurance providers to ensure adequate coverage for business interruption and property damage related to power outages and wildfire events. Evaluate the resilience of your properties, particularly those in high-risk zones, and consider long-term infrastructure improvements that might mitigate future risks or costs.