In industrial operations, power is often assumed to be available — until it isn’t. Whether caused by equipment failure, utility interruptions, or internal electrical system issues, power system downtime can bring operations to a standstill in seconds. While the immediate loss of production is easy to quantify, the true cost of downtime often extends far beyond lost output.

For industrial facilities across British Columbia and Western Canada, downtime is becoming more expensive as operations grow more automated, electrified, and interconnected. Understanding these hidden costs is the first step toward reducing risk and improving long-term reliability.

What Is Power System Downtime?

Power system downtime occurs when electrical power is partially or completely unavailable due to:

• Equipment failure (transformers, switchgear, breakers)
• Power quality issues (voltage sags, harmonics, transients)
• Utility grid outages or disturbances
• Poor system coordination or protection settings
• Deferred maintenance or aging infrastructure
  

Downtime can be planned (scheduled maintenance) or unplanned, with the latter causing the greatest financial and operational impact.

1. Lost Production and Operational Disruption

The most visible cost of downtime is lost production. When power is interrupted, industrial processes often shut down immediately — and restarting them is rarely instantaneous.

Why the Impact Is Larger Than It Appears

• Automated processes may require full system resets
• Restart sequences can take hours, not minutes
• Raw materials may be damaged or wasted
• Downstream processes are delayed even after power is restored

For industries such as mining, manufacturing, pulp and paper, oil & gas, and food processing, a single outage can result in tens or hundreds of thousands of dollars in lost output.

2. Equipment Damage and Accelerated Wear

Not all outages are “clean” power losses. Many involve voltage fluctuations, transient events, or incomplete shutdowns — all of which can damage electrical and mechanical equipment.

Hidden Equipment Costs

• Insulation degradation in motors and transformers
• Premature failure of variable frequency drives (VFDs)
• Thermal stress on breakers and switchgear
• Reduced lifespan of control electronics

Over time, repeated power disturbances shorten asset life, increase maintenance frequency, and force earlier-than-planned capital replacement.

3. Safety Risk to Personnel

Electrical downtime can also introduce serious safety hazards, particularly in industrial environments where power supports critical safety systems.

Examples of Safety Impacts

• Loss of lighting, ventilation, or control systems
• Uncontrolled equipment shutdowns
• Increased arc flash risk during fault events
  Emergency systems not operating as designed

In BC, safety regulations place a strong emphasis on risk mitigation. Power system failures that compromise safety can lead to work stoppages, investigations, and regulatory scrutiny, all of which add indirect costs to downtime events.

4. Increased Maintenance and Emergency Repair Costs

Unplanned downtime almost always costs more than planned maintenance.

Why Emergency Repairs Are Expensive

• Overtime labour and call-out fees
• Expedited shipping for replacement parts
• Temporary power solutions or rentals
• Reduced repair quality under time pressure

Facilities that operate reactively often find themselves trapped in a cycle of “fixing failures” rather than addressing root causes. Over time, this approach significantly increases total cost of ownership.

5. Power Quality Penalties and Utility Charges

In many cases, downtime isn’t caused by a complete outage — but by poor power quality.

Power Quality Issues That Lead to Downtime

• Low power factor penalties
• Harmonics causing nuisance tripping
• Voltage sags affecting sensitive equipment
• Demand spikes after restart events

Utilities may impose financial penalties for poor power factor or excessive demand, adding recurring costs on top of operational losses. These issues often go unnoticed until downtime occurs repeatedly.

6. Reputational Damage and Contractual Risk

In industries with contractual obligations — such as mining supply chains, public infrastructure, or utility service agreements — downtime can have long-term consequences.

Business Impacts

• Missed delivery deadlines
• Contract penalties or liquidated damages
• Loss of customer confidence
• Reduced competitiveness in future bids

For publicly funded or regulated operations in BC, repeated outages can also attract unwanted attention from stakeholders and governing bodies.

7. The Cost of Not Understanding Your Power System

One of the biggest hidden costs of downtime is lack of visibility. Many facilities operate without a full understanding of how their electrical system behaves under different conditions.

Common Gaps

• Unknown load profiles
• Poor coordination between protection devices
• Inadequate arc flash analysis
• No harmonic or transient monitoring
• Aging single points of failure

Without proper data and analysis, facilities often treat symptoms rather than solving underlying issues — leading to recurring downtime.

How Power System Analysis Reduces Downtime Risk

A proactive approach to power reliability starts with comprehensive power system analysis.

Key Studies That Prevent Downtime

• Load flow and capacity analysis
• Short-circuit and protection coordination studies
• Arc flash risk assessments
• Harmonic analysis
• Equipment condition assessments

Advanced tools such as PowerLens™, available through Arbutus West Agency’s partner network, allow engineers to model real-world system behavior, identify vulnerabilities, and evaluate mitigation strategies before failures occur.

Designing for Reliability from the Start

New facilities and expansions offer a major opportunity to reduce downtime risk — if reliability is prioritized early.

Best Practices for New Projects

• Right-size transformers and switchgear
• Design for future expansion and electrification
• Incorporate redundancy for critical loads
• Select equipment rated for local environmental conditions
• Engage manufacturer representatives early in the design process

In many cases, modest upfront investment in better design saves millions over the life of the facility.

How Arbutus West Agency Helps Reduce Downtime

For more than 30 years, Arbutus West Agency Ltd. has supported industrial and utility clients across Western Canada by connecting them with proven electrical equipment solutions and technical expertise.

Our Role Includes:

• Helping engineers specify reliable, application-appropriate equipment
• Supporting power system studies and analysis
• Advising on equipment upgrades and modernization
• Assisting with solutions for harsh or remote BC environments
• Bridging manufacturers, consultants, and end users
  

By addressing downtime risks early, facilities can operate more safely, efficiently, and predictably.

Final Thoughts

Power system downtime is rarely just an electrical problem — it’s a business risk. The hidden costs add up quickly, including lost production, damaged equipment, safety exposure, emergency repair expenses, and reputational impact.

Industrial operators in British Columbia and across Western Canada who invest in understanding their power systems, conducting proactive analysis, and selecting reliable, application-appropriate electrical equipment are far better positioned to minimize downtime and control long-term costs. Rather than reacting to failures, these organizations design for resilience, safety, and operational continuity.

By partnering with experienced electrical equipment specialists early — and revisiting system performance regularly — facilities can turn power reliability into a competitive advantage rather than a vulnerability.