Reference no: EM132291269

Question: Respond to in 150 words

Companies like SDGE are already trying to mitigate the risk of power outages in the short term through incentivized plan rates, by charging more for usage during peak usage hours. Incentives to install solar panels is another example of how companies can reduce the demand on their existing infrastructure. Losses due to power outages can cost millions to billions of dollars. Companies need to invest into long term solutions as well, such as renewable energy sources, updating infrastructure and making it more efficient, etc. The upfront costs of investment is necessary to maintain reliability and prevent economic losses, safety risks, and liability concerns that will result from blackout situations. Diversifying energy sources can help to minimize risk of blackout as well.

Reference: Power Infrastructure: Keeping the Lights On. (n.d.). The One Brief.