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Utility Company Liability for Wildfire Power Outages

Posted on 03/13/26 Fire

Wildfires may have always been a part of California’s natural disaster landscape, but the number and severity of fires have increased considerably in recent years. While hotter and drier conditions contribute to wildfire risk, utility company negligence has been a major factor. Damage caused and money lost due to wildfire power outages may be compensated from an at-fault utility company through California wildfire litigation.

recovering damages for wildfire power outages

Why Do Wildfires Result in Power Outages?

A wildfire can cause a power outage in two main ways: by damaging electrical infrastructure and forcing manual shutoffs to help prevent the spread of the fire. The blaze of a wildfire can damage equipment and hardware that knocks out the power for a specific customer or a large number of residents. Fallen tree branches and distribution line damage from a wildfire can cause power outages for customers in the area.

Electricity itself is a potential source of wildfires. When conditions are prime for starting and spreading wildfires – such as extreme heat, dry weather or drought, and high winds – utility companies have a responsibility to conduct Public Safety Power Shutoffs in High Fire Threat areas. They may also organize shutoffs to repair faulty or outdated equipment.

What Are the Dangers of Power Outages?

Power outages from wildfires can cause significant personal and professional disruptions. Power failures can have wide-reaching consequences, from refrigerated goods spoiling to businesses having to temporarily close.

Common types of losses include:

  • Spoiled food and perishable items
  • Business inventory losses
  • Lost business revenue from forced closures
  • Life-saving medical device shutdowns
  • Sudden utility shutoffs
  • Property damage from failed home systems
  • Injuries from falls due to poor lighting
  • Costs of temporary relocation
  • Out-of-pocket costs, such as generators

California residents and business owners can prepare for wildfire power outages by investing in generators and purchasing nonperishable foods, but they may still suffer considerable losses – especially if the outage was unexpected, unannounced or prolonged.

Can You Sue for Damages Caused By Wildfire Power Outages?

Yes, it is possible to sue and receive financial compensation for damages or losses caused by wildfire power outages. If an investigation finds that a utility company – such as Pacific Gas & Electric (PG&E) or Southern California Edison (SCE) – caused or contributed to the wildfire, this can provide grounds for victims to file claims in pursuit of compensation for a variety of related losses, including power outages.

Utility companies have a legal responsibility to ensure public safety as much as possible through the proper installation, maintenance and upkeep of their equipment. If they fail in this regard, wildfires can be sparked from downed power lines and faulty electrical equipment. Utility companies can then be held liable (financially responsible) for fire-related damages.

If a power outage was planned to help protect the public but the utility company did not provide an advanced warning, this could also lead to a claim for damages caused by the sudden loss of power. It’s important for victims to properly document their losses during wildfire power outages to strengthen their claims.

For more information about your rights and legal options in the aftermath of a destructive California wildfire, contact the attorneys at Bridgford, Gleason & Artinian for a free consultation.