Wildfire Risks

Wildfires are one of the most visible risks to the power grid. Large conflagrations in California devasted communities and required the extraordinary application of Public Safety Power Shutoffs (PSPS) when dry conditions and winds are unacceptably high, creating challenges for grid operators and customers. Potential ramifications to other critical industries could also have a domino effect far beyond interruption of power delivery from resulting personnel and supply chain problems. The North American Electric Reliability Corporation (NERC) recently updated its Wildfire Mitigation Reference Guide that focuses on the Western U.S. but also points out applicability across the grid.  

In Texas, wildfire risks are increasing due to persistent drought conditions . February 2024’s Smokehouse Creek Fire in the Panhandle was the state’s largest wildfire to date, covering over one million acres. The Texas 2036 project pointed out six major wildfires that caused between $2 and $5 billion in damages in the past two decades. Last year’s Assessment of Historic and Future Trends of Extreme Weather in Texas, 1900-2036 from the Office of the State Climatologist at Texas A&M University suggests longer Texas wildfire seasons in the future with greater portions of the state being susceptible.

Wildfires have caused limited direct impacts to the Texas Bulk Power System (BPS), but concerns have prompted legislative and regulatory actions. For instance, Public Utility Commission of Texas (PUCT) Substantive Rule (SR) 25.53(e)(1)(D) requires all transmission and distribution owners to include a wildfire annex in their Emergency Operations Plans (EOPs). Additionally, investor-owned utilities have created resiliency plans per 2023’s House Bill 2555 that includes expanded wildfire mitigation and response capabilities. Oncor, AEP TNMP, and CenterPoint have obtained PUCT approval for resiliency plans this year under SR 25.52. Legislative work to address broader wildfire readiness and management continues. Texas 360 notes six reform bills passed in 2025 that bolster the role of the Texas A&M Forest Service and require expanded utility pole inspections.