Why Power Outages Are Getting Worse and What That Means for Small Businesses

The Rising Risk

Power outages in the U.S. are becoming more frequent, more intense, and more damaging, leaving many small businesses exposed to risks they may not fully appreciate yet.

• A report by Oak Ridge National Laboratory (ORNL) shows that researchers compiled a dataset of outages from 2014-2022 covering almost all U.S. counties, tracking interruptions at 15-minute intervals. ornl.gov
  

• According to this research, counties averaged about one outage per week, affecting hundreds of thousands of customers and amounting to significant durations and intensities. arXiv+1
  

• And from Climate Central: “Large-scale power outages are increasingly common… 83% of reported major outages from 2000-2021 were weather-related.” Climate Central
  

• A recent map-based analysis shows the average U.S. county in the high-vulnerability category saw outages lasting about 7.3 days per year (≈ 2% of the year) and frequency rising by ~20% annually since 2019. Newsweek+1
  

What’s Driving the Increase?

Several overlapping factors are contributing to this trend:

• Extreme weather & climate-driven events: Hurricanes, wildfires, ice storms and heat waves all place heavier stress on the grid and are tied to a large share of major outages. Climate Central+1
  

• Aging infrastructure & grid complexity: Much of the U.S. electricity distribution system is decades old. According to the American Society of Civil Engineers, transmission and distribution problems account for ~92% of service interruptions. Infrastructure Report Card
  

• Growing demand and evolving technology: As demand increases (e.g., data centers, EVs) and generation/renewables change, grid operators face new resource-adequacy and coordination challenges. The Department of Energy's Energy.gov+1
  

• Geographic vulnerability: Some regions are more exposed — for instance, coastal counties, areas with interconnected grid systems, and states facing frequent extreme weather. arXiv+1
  

Why Small Businesses Should Care

For a small business, even a few hours without power can translate into lost revenue, spoiled inventory, disrupted operations, customer dissatisfaction and more. If outages are increasing in frequency and duration, it’s no longer enough to simply hope for the best, it’s about preparedness as strategy.

• When outages last longer or happen more often, the business interruption risk jumps accordingly.
  

• Traditional insurance often covers damage or physical loss but may not always cover downtime, lost income, or the full ripple effects of a power event.
  

• Businesses that ignore this reality may face systemic exposure. Repeated minor outages add up, and major events can be existential.
  

What Small Businesses Can Do

Here are actionable steps a small business owner should take:

1. Assess your outage risk — What’s your geographic exposure (storm zones, aging grid region)? How long have past outages lasted?
   

2. Review your business continuity plan — Do you have backup power? Can you operate in partial mode? What happens if services are down for 24-72 hours?
   

3. Layer in modern protection — Consider tools and services designed to address outage-related losses quickly (for example, Centinel’s PowerProtect™ plan that delivers immediate funds once a qualifying outage occurs).
   

4. Partner with your insurance or broker — Ask about gaps in coverage: Is downtime covered? Are there parametric or membership plans that address non-damage interruption?
   

5. Communicate with customers & staff — If an outage occurs, having a clear plan helps you respond faster and maintain trust.
   

6. Monitor & update your plan — As grid risks evolve, your readiness plan should too. Review annually or after any major event.
   

Closing Thoughts

Power outages used to be viewed as occasional disruption. But with the risk landscape shifting — thanks to infrastructure stress, weather volatility and demand growth — outages are no longer an “if” for many businesses but a “when.” Small businesses that treat power-resilience as a proactive strategy will have an edge: staying open when others aren’t, protecting revenue, and maintaining customer trust.

At Centinel, we believe small businesses deserve access to modern protection tools, not just after the fact, but before the outage hits. Because when the lights go out, your business continuity should not. Visit our website to learn more about PowerProtect™ and how it can help your business today.