Power out? AI in! California grid operator to deploy AI for power outage management

California’s statewide power grid operator is poised to become the first in North America to deploy artificial intelligence to manage outages, with the California Independent System Operator (CAISO) set to announce a pilot program using new AI software called Genie. The move represents a significant shift from the surprisingly analog processes currently used to manage the state’s electrical system, potentially paving the way for broader AI automation across America’s aging power infrastructure.

What you should know: CAISO will announce the pilot program at the DTECH Midwest utility industry summit on July 15, partnering with energy-services giant OATI to test AI-powered grid management.

• The Genie software uses generative AI to analyze and carry out real-time analyses for grid operators, with the potential to autonomously make decisions about key grid functions.
• Currently, CAISO engineers manually scan outage reports for keywords about planned maintenance, read through notes, and load each item into grid software to calculate how downed lines or transformers might affect power supply.
• “Even if it takes you less than a minute to scan one on average, when you amplify that over 200 or 300 outages, it adds up,” says Abhimanyu Thakur, OATI’s vice president of platforms, visualization, and analytics.

Why this matters: Most grid operators are using the same systems that utilities have used “for decades,” creating opportunities for AI to dramatically improve efficiency and reliability.

• A Department of Energy report found that AI has potential to speed up studies on grid capacity and transmission, improve weather forecasting for renewable energy prediction, and optimize electric-vehicle charging networks.
• The shift comes as discussions around AI and energy have focused primarily on data center electricity demands rather than how AI can improve grid operations.
• “We’ve been talking a lot about what the grid can do for AI and not nearly as much about what AI can do for the grid,” says Charles Hua, executive director of PowerLines, a nonprofit advocating for grid improvements.

How it works: The AI system consolidates multiple manual processes into automated analysis and reporting.

• Genie scans outage reports using a consolidated dictionary of keywords that different departments previously searched for separately.
• The software generates proactive reports instead of requiring manual keyword searches and data entry.
• If successful, CAISO may consider automating additional grid functions beyond outage management.

Who else is involved: Other major grid operators are exploring similar AI implementations across the United States.

• PJM Interconnection, the nation’s largest grid system spanning 13 states, signed a deal with Google in April to use its Tapestry software for regional planning and faster grid connections.
• ERCOT, the Texas grid system, is considering adopting similar technology to what CAISO is testing, according to a source with knowledge of the plans.
• Australia’s New South Wales already uses AI software that predicts rooftop solar production and automatically adjusts how much power from those panels can enter the grid.

What they’re saying: CAISO officials are approaching the pilot with cautious optimism while acknowledging the transformative potential.

• “We wanted to modernize our grid operations. This fits in perfectly with that,” says Gopakumar Gopinathan, a senior advisor on power system technologies at CAISO. “AI is already transforming different industries. But we haven’t seen many examples of it being used in our industry.”
• “I don’t want to overhype it,” Gopinathan adds. “Right now, this is more limited to our outage management system. Genie isn’t talking to our other parts yet. But I see a world where AI agents are able to do a lot more.”