While PSPSs aim to mitigate wildfire ignition risks in California, they pose substantial economic challenges. This paper investigates the direct costs of PSPSs on both residents and industries in California and examines the general equilibrium effect on consumption and welfare in the West, considering heterogeneous impacts across income groups and industries. The total direct interruption cost in California amounted to $5.82 billion for residents and $7.57 billion for industries in 2010. Although total interruption costs for both residents and industries are higher in CZs with larger populations and outputs, per-household interruption costs and the proportion of output interruption costs are higher in other CZs with lower population and industrialization levels. Moreover, while middle- and high-income households face higher per capita interruption costs, low-income households bear a heavier burden in terms of income expenditure. The general equilibrium analysis reveals that California experiences the most severe welfare decline across all income groups under various shock scenarios. In other Western states, welfare changes vary by shock type and income level, with more favorable outcomes for lower-income households under the combined shock.