Public Safety Power Shutoffs Expand Beyond California Amid Growing Wildfire Risk

Utilities across the Western U.S. are increasingly using public safety power shutoffs to reduce wildfire risk during unusually warm and dry winter conditions. Areas of Texas, New Mexico, Colorado, Nevada, and Wyoming have seen grasses and brush dry out due to La Niña-driven weather patterns, creating conditions where power lines could ignite fast-moving fires. For claims adjusters, these conditions heighten the likelihood of early-season wildfire losses and complicate causation analysis when outages precede or coincide with fire events.

In Colorado, Xcel Energy Inc. ordered multiple preventative outages affecting more than 50,000 customers near Boulder, Fort Collins, and the Rocky Mountains. These decisions rely heavily on meteorological forecasting and real-time data. Shutoffs are unpopular with customers but are designed to reduce liability exposure for utilities facing potential wildfire-related lawsuits. For adjusters, this raises questions around coverage for outage-related losses such as food spoilage, medical equipment failure, and business interruption.

The approach has spread beyond California, where Pacific Gas & Electric Co. pioneered large-scale PSPS programs after its equipment sparked catastrophic fires that led to bankruptcy in 2019. PG&E now operates more than 1,600 weather stations and uses AI-driven models, including tools from Technosylva, to assess ignition probability and potential damage. These systems influence when power is cut and how long outages last, data that may surface in subrogation and litigation files.

While wildfire acreage in California declined significantly last year, according to Cal Fire, unplanned outages remain common due to fast-trip safety settings. Meanwhile, liability pressure continues, with Edison International facing hundreds of lawsuits tied to a deadly fire allegedly linked to its transmission lines. For claims adjusters, this environment underscores the importance of understanding utility mitigation practices, outage documentation, and how meteorological and AI data may be used to support or dispute claims outcomes.