Aug 17, 2023 - Economy & Business
Electricity companies face calamity as climate warms
Nathan Bomey
Power companies and grid operators increasingly risk financial calamity from natural disasters, with challenges intensified by operational hurdles, soaring costs and the effects of climate change.
Why it matters: The utility industry was once thought of as virtually impervious to financial disaster — a surefire investment bound to deliver steady returns.
Yet tragedies like the deadly Maui wildfires have cast a spotlight on whether power companies are doing enough to protect the public. They also face growing risks from a warming climate that's creating unpredictable weather.
Driving the news: At least 110 people are dead in Maui, an estimated 1,300 are missing and more than 2,200 structures have been destroyed or damaged.
Meanwhile, the shares of Hawaiian Electric Industries have dived, with the company accused of mismanaging the crisis, and possibly worsening it.
The big picture: A warming climate, plus decades of underinvestment in the electrical grid, is thrusting utilities into turbulent territory:
*HEI suddenly faces lawsuits over accusations that its downed power lines triggered the cataclysmic wildfires that destroyed the town of Lahaina.
*Several Texas power companies — including the state's oldest and largest electricity cooperative, Brazos Electric Power Cooperative — filed for bankruptcy protection after a ruthless winter storm pummeled Texas in early 2021.
*California utility giant PG&E filed for bankruptcy protection in 2019, after one of its a nearly century-old transmission lines sparked the Camp Fire that killed some 85 people.
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https://www.axios.com/2023/08/17/maui-wildfires-hawaiian-electric