A PORT Stephens festival has pulled the plug after severe hail storms spread power outages and NSW State Emergency Service crews across the region's coast on Friday.
Port Stephens Council issued a statement at 4.30pm saying its Illuminate festival would not proceed on Friday night.
The event was designed to include a sideshow alley, lanterns and other displays before a 9pm fireworks show.
"We've made the difficult decision to cancel tonight's Illuminate event at Raymond Terrace due to the unpredictable weather conditions in and around the Ports Stephens region," the council said in a statement.
"It's not safe to continue in the current conditions, with soggy grounds and the uncertainty of more weather to come.
"The Raymond Terrace Festival is coming up on 29 July - we'll look at ways to incorporate elements of Illuminate, such as the community parade into this event."
Traffic lights were on Friday blacked out at several major intersections, including Hunter Street near Steel Street and on Glebe Road at The Junction near Kenrick and Watkins streets.
At 2.30pm the Bureau of Meteorology said the immediate threat of severe thunderstorms in the region had passed, but the situation would be monitored.
A NSW State Emergency Service spokeswoman said shortly after 1pm there were more than 200 calls relating to the storms, a figure that had swollen to 320 less than two hours later.
"Most of the calls have been for assistance with damaged sky lights, roof tiles, leaking roofs, and verandas," she said.
"There has been no reports of injury or major infrastructure damage at this time."
Ausgrid says 2330 homes and businesses in the suburbs of Newcastle West, The Junction, Bar Beach and Merewether are without power.
It is not known how long the blackout will last.
Earlier forecasts predicted a high chance of rain in the city on Friday with a chance of hail but backyards were blanketed in white before midday in some coastal suburbs.
Hail fell in widespread suburbs including Merewether, Adamstown, New Lambton and Valentine, shifting over Mayfield and further north as it went.
At 1.30pm the Bureau of Meteorology advised severe thunderstorms "likely to produce large hailstones and heavy rainfall that may lead to flash flooding" would linger for several hours.
"Accumulations of small hail are also possible," it said. "Locations which may be affected include Forster, Seal Rocks, Bulahdelah, Nelson Bay and Dungog."
At Merewether Pump Station, the bureau recorded 56mm of rain in the hour to 12.55pm.
The forecast for the weekend is a stark departure from the storms, with sunny conditions expected in Newcastle for the next few days.
Boaters are urged to remain vigilant for strong winds along the coast both on Friday and Saturday.
For emergency help call the NSW State Emergency Service on 132 500.
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