Newcastle Fire Command says they've been called to dozens of reports of wires arcing across the region.
It's believed the rain has combined with recent dust from bushfires to cause wires to arc.
Around 3,400 homes and businesses are without power at Warabrook, Sandgate, Mayfield, Mayfield West, Adamstown, Broadmeadow, New Lambton and Redhead.
Ausgrid hopes to have power restored by 10.30am.
