PG&E Outage Impacts SF Businesses and Autonomous Vehicles: Lessons for Investors

• A major power outage in San Francisco on December 20, 2025, caused by a fire at a Pacific Gas & Electric (PG&E) substation, disrupted nearly one-third of the city's electricity service. During the outage, Waymo's autonomous vehicles stalled at traffic signals, contributing to congestion and revealing vulnerabilities in the systems' infrastructure dependence.

• Businesses in the Richmond District suffered significant losses, . PG&E announced automatic bill credits for affected customers, , to restore trust and compensate for service disruption.

• Waymo is updating its fleet's emergency response protocols to improve performance during infrastructure failures. The company plans to integrate real-time outage information into its navigation systems, train first responders, and collaborate with San Francisco emergency teams. These changes reflect broader investor concerns about the readiness of autonomous systems to handle real-world disruptions.

• The incident also highlighted the fragility of centralized energy infrastructure under climate-driven stress. With a growing number of weather-related outages in California, firms like Hubbell and Monolithic Power Systems are leading smart grid modernization efforts, presenting investment opportunities in grid resilience and renewable energy.

• PG&E is mobilizing for two upcoming winter storms, . The company is also reviewing the December 20 incident to improve infrastructure and response strategies.

How Did the PG&E Outage Affect Local Businesses in San Francisco?

Small businesses in the Richmond District faced severe financial and operational challenges. The prolonged power outage led to the loss of perishable goods and wages for employees, with some stores forced to close temporarily. Store owners reported frustration over the lack of support from PG&E during the event, emphasizing the importance of contingency plans for small enterprises.

The outage also prompted San Francisco leaders to call for improved infrastructure and accountability from PG&E. Businesses are now encouraging continued shopping to recover lost revenue, but many remain concerned about their ability to withstand future disruptions without backup power solutions.

What Does the PG&E Outage Mean for Waymo and Autonomous Vehicles?

The outage underscored how autonomous vehicles depend on functioning infrastructure like traffic signals. Waymo confirmed it temporarily suspended its robotaxi service in San Francisco after its vehicles began stalling at dark intersections. The incident raised concerns about the potential for autonomous systems to impede emergency services during larger disasters like earthquakes.

In response, Waymo announced software updates to help its fleet navigate outages more effectively. The changes include improved awareness of regional power failures and better coordination with local emergency teams. These updates are part of a broader effort to enhance the resilience of autonomous systems in real-world conditions.

What Lessons Should Investors Take from the PG&E Outage and Its Aftermath?

For investors, the event highlights the growing risk of infrastructure failure across multiple sectors. Autonomous systems, small businesses, and even blockchain networks rely on stable electricity and internet access, and disruptions can have cascading effects. The need for grid modernization, decentralized energy solutions, and smarter infrastructure resilience is becoming increasingly clear.

Startups and established firms in grid modernization, distributed energy, and AI-driven infrastructure monitoring are well-positioned to benefit from this trend. Meanwhile, investors in autonomous vehicle companies should monitor how effectively these firms adapt to infrastructure volatility. For local businesses, the incident underscores the importance of backup power and diversification strategies to mitigate future risks.