Right-sizing Utility Wildfire Investments For Smaller Uti…

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Minimum Viable Wildfire Readiness, Tailored to each Utility’s Structure and Risk Level

Smaller utilities carry the same responsibility as larger ones: protect their communities and keep the lights on. But they often do it with leaner teams, fewer specialized roles, and tighter financial constraints. In smaller utilities, each person wears multiple hats and “does more with less.” Co-op and municipal utilities, in particular, have become experts at using their budgets, staff, and expertise to operate the grid while investing in and maintaining safety and preparedness. In recent years, however, the growing threat of wildfire has put a new strain on the system – a massive community safety and liability risk, requiring new skills and capabilities. 

Given their constraints, smaller utilities, including many electric cooperatives and municipal utilities, cannot simply build larger wildfire programs, grow teams, or invest in a multitude of technologies. Many also serve large geographic territories with lower population density and significant line miles – meaning more infrastructure to maintain, more exposure to varying terrain and fuels, and more potential ignition sources to manage.

While they may not be subject to the same regulatory requirements as their investor-owned utility (IOU) counterparts, such as formal Wildfire Management Plans (WMPs), they the same obligation to protect their customers and can be held liable for ignitions tied to their assets. For cooperatives and municipalities, the financial consequences of that liability could be devastating. According to Swiss Re, eight of the ten costliest wildfires on record, based on insured losses, occurred since 2015.

In the case of cooperatives, the stakes are even closer to home – its “members” are also its “owners.” In extreme cases, bankruptcy is the last shield for members from financial consequences. All of this underscores a simple reality: wildfire risk is paramount to every utility, from ensuring customer safety to safeguarding the long-term financial health of the organization. 

The Building Blocks of Baseline Readiness

Utilities are inherently unique in their geography, customers, operating model, staffing, budgets, and wildfire exposure. Still, every utility needs a baseline level of wildfire readiness, visibility, and protection.

At a minimum, visibility means understanding the drivers of the hazard (weather, fuels, and topography), exposure (the risk of ignition from assets), and potential consequences (impacts on lives and property). And in most cases, the consequences of operating without that visibility far outweigh the cost of establishing it.

What Does ‘Minimum Viable’ Look ?

• First: Borrow core elements from proven “playbooks” in high wildfire risk areas. Many West Coast utilities offer mature examples of wildfire best practices. Smaller utilities shouldn’t feel pressure to replicate those programs in full, but they can borrow proven elements that have demonstrated value in critical moments – such as enhanced situational awareness, high-fire-threat-area identification, and lowest-cost mitigations setting changes, targeted operational protocols, and vegetation management practices. Many of these core practices can be accomplished at relatively low cost and within the operational frameworks of smaller utilities. Adoption of “low-hanging fruit” measures allows smaller utilities to quickly move up the risk mitigation curve.
• Second: Understand the dynamic nature of wildfire risk throughout the service territory. “Low risk” does not mean “No Risk”. Conditions suitable for wildfire can now occur anywhere. Historically, many regions of the U.S. have been too wet to experience frequent periods of high fire danger. But drought cycles, vegetation growth, development patterns, and a warming climate are reshaping fire behavior and expanding the footprint of consequential events. Areas that have historically appeared on static risk maps as “green” now have several days each year when wildfire conditions are ripe for a catastrophic fire. Many of these areas that can shift from “green” to “red” in a matter of days are in close proximity to large urban areas. Even a small fire moving quickly near a populated center can have catastrophic impacts on human lives and infrastructure. Nearly every region in the U.S. is expected to face a higher wildfire probability over the next 50 years than it did over the past 50. That means risk can change quickly – even in places that don’t think of themselves as “high fire risk.” A baseline capability to monitor how conditions are evolving across the service territory is now essential.
• Third: Make every dollar count by investing where ROI is highest – and where benefits stack across hazards. Every utility needs a practical way to identify where grid hardening and mitigation investments will deliver the greatest risk reduction per dollar – ideally in locations that also improve resilience for other hazards (wind, winter storms, extreme heat). On average, FEMA estimates that each $1 invested in natural hazard mitigation yields $6 in savings, a conservative figure based solely on federally funded mitigation. Baseline, territory-wide risk assessments are a critical input to risk-informed capital planning and provide a defensible rationale when communicating with members and ratepayers. For smaller utilities balancing safety, reliability, and system growth, these assessments help ensure limited capital is spent where it matters most.
• Finally: Collaborate with other utilities and community partners. Wildfire doesn’t respect boundaries. Wildfire is a spatial problem – and a collective-action problem. It doesn’t care whose line, jurisdiction, or community is in its path; it moves according to weather, fuels, and terrain. Establishing strong lines of communication and conducting joint preparedness drills with neighboring utilities and emergency response partners improves decision-making under pressure and reduces friction when conditions escalate. These external stakeholders can also help ensure a wildfire plan is sound and even help reduce costs by taking on non-utility mitigations that reduce risk. 

At its core, wildfire readiness is about protecting people and the communities that utilities serve. Right-sizing investments ensures that even smaller organizations can uphold that responsibility without compromising their financial health. By combining best practices, scientifically proven risk intelligence, and partner collaboration, utilities can deliver on their promises of safety balanced against reliability, even under the most challenging conditions.

Want to Learn More?

Be sure to catch the recording of Technosylva’s recent webinar, “The Mechanics of Impact: How High-Resolution Outage and Flood Modeling Improves Grid Response and Restoration.”Register and watch now.

About Technosylva

Technosylva’s wildfire intelligence platform helps utilities build risk visibility across their service territories. Learn more about their electric utility solutions.