Months after the PG&E power safety shutoffs, the true repercussions of the now infamous time come to light. Local businesses suffered through lost revenue and unexpected expenses during Pacific Gas & Electric’s power safety shutoffs in October 2019. With little hope of reimbursement, diverse industries, especially those in hospitality and gastronomy are facing financial repercussions. Notably, inaccurate outage maps and unexpected shut-off times left businesses stranded for days on end with responsibilities to staff and customers.

To find out more about the impact of the PG&E shutoff’s, the Santa Cruz County Business Council conducted a county wide survey.

According to SCCBC’s Robert Singleton:

54 business reported losing money indirectly, by paying staff overtime and for the loss of operation hours, as well as through direct loss from equipment failures and ruined inventory. On average, businesses reported losing about $32,900.

Reportedly, 68% of businesses were able to prepare to a certain degree with investments in generators and other mechanisms. Yet for the gastronomic sector, expenses are much higher for both preventative failsafes and lost business.

For Gayle’s Bakery in Capitola, the shutoff resulted in five days of lost business. Owner Gayle Ortiz stated:

We can’t start making things if we’re going to be closed tomorrow.

A breakdown of incurred expenses revealed over $86,000 in expenses for the time and no profit for the month as a result. With commercial generators costing over $100000, Gayle’s and Capitola are exploring options for a micro-grid.

Similarly, businesses such as Cruzio Internet and 99 Bottles both reported expenses for equipment costs incurred by the shutdowns and paying staff overtime. Even with generators or further methods of preparing for the shutdowns, the disruption led to difficulties all across the county with long lasting implications.

Overall, the PG&E shutdowns created a highly unpredictable situation that proved very challenging all across the impacted areas. With no compensation in view, the community is working on solutions for better preparedness in the future to weather similar difficulties.

Adapted from a Santa Cruz Sentinel Article