Report: Impact of Extreme Weather on U.S. Power Utilities in 2025

The first half of 2025 saw over $131 billion in global losses due to extreme weather events like wildfires and floods, challenging U.S. utilities with longer outages and infrastructure strain, yet customer satisfaction remains relatively high in the South due to effective communication.
Oct. 23, 2025
3 min read

A string of extreme weather events — from Los Angeles wildfires to widespread spring and summer flooding — fueled more than $131 billion in global losses during the first half of 2025, according to a new Utilities Intelligence Report from J.D. Power. The company’s expanded U.S. Electric Utility Residential Customer Satisfaction Study reveals how these disasters have intensified power reliability challenges for utilities already contending with aging infrastructure and economic uncertainty.

Nearly half (45%) of utility customers nationwide reported experiencing a power outage in the first six months of 2025, with 48% attributing the cause to extreme weather such as hurricanes, snowstorms, or wildfires. Among those affected by natural disasters, 17% said they were forced to evacuate their homes.

Longer Outages Across All Regions

The report shows that average outage durations have risen in every U.S. region since 2022. Customers in the South reported the longest average outages — 18.2 hours — followed by those in the West at 12.4 hours.

The South also saw the greatest overall impact from recent disasters, with 77% of customers reporting a loss of power following severe weather events. Outages tied to extreme weather in that region lasted an average of 95.2 hours, the longest in the nation. Southern customers also experienced the highest levels of property damage (36%) and the second-highest rate of evacuation (17%).

Wildfire and Shutoff Impacts in the West

In the Western U.S., 4% of customers reported outages caused by wildfires, while another 6% experienced proactive power shutoffs by their utility aimed at preventing fire ignition.

Satisfaction Holds Steady in the South

Despite the growing frequency and severity of outages, overall customer satisfaction among electric utilities averaged 504 points on a 1,000-point scale through mid-2025. The South led all regions with a score of 530, outperforming the Midwest (516), West (481), and East (477).

J.D. Power found that Southern utilities’ higher scores were driven by strong ratings for safety, reliability, trust, and digital experience. More than half of customers (57%) nationwide said their utility should be the main source of electric safety education. In the South, nearly one-third (29%) of customers reported receiving disaster-preparation information from their utility via text message — the highest share of any region.

Communication Drives Trust

The study emphasizes that timely, accessible communication is one of the strongest predictors of customer satisfaction during and after outages. Forty-four percent of customers said they want their utility to provide guidance on how to prepare for severe weather, and 35% want clear instructions on what to do during extended outages.

Customer satisfaction rises sharply when utilities reach out directly following a service restoration, J.D. Power found.

Managing What Can Be Controlled

As extreme weather events become more frequent, J.D. Power says utilities will need to focus on “controlling the controllables” — improving communication, building trust, and strengthening digital engagement. The South’s relatively high satisfaction levels, despite repeated disasters, suggest that transparent outreach before and after storms can significantly mitigate the frustration that accompanies power loss and property damage.

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