When Lightning Strikes!
The Newsletter for Ready Rating Members
June 2014

Managing Power Outages

If you believe that power outages are becoming more frequent – you’re not alone. A report released last August by the White House entitled: Economic Benefits of Increasing Electric Grid Resiliency to Weather Outages, found that during 2012 there were approximately 680 outages due to severe weather, significantly more than occurred annually between 2005 to 2009. Analysis of these outages by Dr. Massoud Amin of the University of Minnesota provided some additional details when he showed that since 1999 blackouts in the Northeast averaged 214 minutes and 92 minutes annually in the Midwest. These U.S. figures compare to an average of 4 minutes per event in Japan.

Power outages are expensive. A study by Hugh Byrd, Professor of Architecture at the University of Lincoln, UK, and Steve Matthewman, Associate Professor of Sociology at the University of Auckland, New Zealand, found that blackouts annually cost U.S. businesses around $180B in lost revenues.

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Some U.S. Power Numbers...
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Crisis Management - By the Numbers

A light rain broke the heat left by the August sun but not the oppressive humidity. It was Sunday evening when the phone rang at 8:30. Carol almost didn’t answer thinking it was a telemarketer trying one last time to entice her to take a survey or interest her in a timeshare.

Luckily, she did answer.

On the phone was the night guard at the fuel storage depot maintained by her small distribution company. He explained that there had been a serious accident. Roughly thirty minutes earlier while loading a propane tanker truck there was an explosion and fire which injured the driver.

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