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Enhancing Small Language Models for Power Outage Report Generation via Minimum Risk Training

Hung Phan, Waqwoya Abebe, Youssef Hussein, Supriya Chinthavali, Dalton Lunga, Ali Jannesari

arXiv:2609.27197v1cs.AI

TL;DR

Power-outage report generation must preserve heterogeneous outage information while producing XML compliant with CIM IEC 61968-3. The paper applies Minimum Risk Training to fine-tune Qwen2.5-7B-Instruct using sequence-level risk over candidate reports. Overall accuracy rises from 16.20% to 68.95%.

  • Problem

    Power-outage reports vary in form, but generation must preserve their information and meet the strict structure of the target XML standard.

    Source: §1 · p. 1, §2 · p. 2
  • Method

    The paper fine-tunes Qwen2.5-7B-Instruct with MRT, sampling candidate XML reports and minimizing expected risk based on sentence-level BLEU.

    Source: §1 · p. 2, §4.2 · p. 5
  • Results

    68.95% overall accuracy with MRT versus 16.20% for the Qwen2.5-7B-Instruct baseline.

    Source: §5.2 · p. 5
  • Takeaways & Limitations

    MRT improves structured outage-report generation with modest hardware through parameter-efficient fine-tuning, and the paper identifies task-specific sequence-risk design as future work.

    Source: §7 · p. 6

Abstract

from arXiv · show

Minimum Risk Training (MRT) enables neural machine translation models to directly optimize sequence-level evaluation metrics instead of relying only on token- level maximum-likelihood objectives Shen et al. [2016]. Although introduced a decade ago, recent work shows renewed potential for risk-based optimization in modern language models Yang et al. [2024], Jinnai et al. [2025]. We apply MRT to power outage report generation for the Outage Data Initiative Nationwide (ODIN), transforming heterogeneous reports into standardized XML compliant with CIM IEC 61968-3. Our MRT approach improves Qwen2.5-7B-Instruct overall accuracy from 16.20% to 68.95%, demonstrating the effectiveness of sequence- level optimization for domain-specific structured generation

1 Introduction

Small language models offer efficiency and practical deployment but may lack the capacity for complex generation. This work applies Minimum Risk Training to structured power-outage reports, where information must be preserved in standards-compliant XML.

1 Introduction

  • SLMs use less memory and enable faster inference and deployment on limited resources, but may underperform larger models on complex or general-purpose generation.The paper motivates task-specific training to improve generation quality without sacrificing these computational advantages.Source: §1 · p. 1
  • Power-outage report generation must preserve source information while producing XML organized according to the CIM IEC 61968-3 specification.The reports are part of ODIN, which standardizes outage-information exchange for response, restoration, and interoperability.Source: §1 · p. 1
  • Oracle4CS uses Statistical Machine Translation to add a compact Abstract Syntax Tree representation to code-search pipelines, motivating investigation of classical techniques for domain-specific generation.The cited work is Phan and Jannesari [2024].Source: §1 · pp. 1–2
  • PO-MRT fine-tunes Qwen2.5-7B-Instruct by sampling candidate reports, scoring sequence-level risk with sentence-level BLEU, and optimizing expected risk through parameter-efficient fine-tuning.The approach trains from complete generated reports rather than relying solely on token-level likelihood.Source: §1 · p. 2

2 Power Outage Report Generation

Power-outage report generation converts heterogeneous outage information into a unified representation that follows CIM IEC 61968-3. The task requires both preserving source content and meeting the target XML structure.

2 Power Outage Report Generation

  • ODIN’s Power Outage Tracker converts heterogeneous outage information—including incomplete or non-standard XML and JSON records and natural-language descriptions—into a unified CIM IEC 61968-3 representation.Generated reports must preserve source information while satisfying the target XML standard’s structural requirements.Source: §2 · p. 2

3 Motivation Example

The example frames outage-report generation as a transformation from non-standard input to standardized XML. A useful output must preserve outage facts and satisfy the target structure; either alone is insufficient.

3 Motivation Example

  • The example transforms a non-standard JSON outage report into a standardized XML report whose content and hierarchy conform to ODIN’s CIM IEC 61968-3 representation.The input may contain outage identifiers, customer counts, location, and report and restoration times.Source: §3 · p. 2
  • Outage-report generation must preserve semantic content and produce XML with appropriate CIM tags, nesting, namespaces, and matching opening and closing elements.The passage illustrates that a correct customer count under the wrong element, or correct structure with hallucinated outage facts, fails one of these requirements.Source: §3 · p. 3
  • Token-level likelihood can assign similar scores to reports with very different usefulness because it does not distinguish complete reports by both information accuracy and structural validity.This motivates evaluating multiple complete candidates by task-specific generation quality and optimizing toward lower-risk outputs.Source: §3 · p. 3

4 Minimum Risk Training for Power Report Generation

Minimum Risk Training optimizes expected task-specific risk over sampled complete outputs rather than only token-level likelihood. The paper adapts it to fine-tune a pretrained causal language model for XML report generation using sentence-level BLEU.

4.1 Why Minimum Risk Training

  • MRT generates candidate sequences, evaluates each with a task-specific loss, and minimizes expected risk over the candidate set.Sampling approximates the output space, and the evaluation function need not be differentiable, allowing sequence-level metrics such as BLEU to be used directly.Source: §4.1 · p. 3

4.2 MRT Fine-tuning for XML Report Generation

  • The adaptation loads Qwen2.5-7B-Instruct with 4-bit quantization and uses LoRA adapters for parameter-efficient fine-tuning.Each training example pairs a non-standard outage report prompt with a standardized XML reference.Source: §4.2 · p. 3
  • For each prompt, the model samples K candidate XML reports, scores each against the reference with sentence-level BLEU, and defines risk as one minus BLEU.The objective minimizes expected risk across candidates, encouraging higher probability for outputs closer to the standardized reference.Source: §4.2 · p. 5
  • MRT improves Qwen2.5-7B-Instruct fine-tuning by optimizing the quality of complete generated XML reports rather than relying only on token-level supervision.The paper adapts minimum-risk optimization from neural machine translation to fine-tuning a pretrained causal language model.Source: §4.2 · p. 5

5 Experiment

The experiments evaluate MRT fine-tuning on paired outage reports and find substantial gains in overall accuracy, XML structure, and textual similarity.

5.1 Experimental Setup

  • The experiments use 1,000 paired non-standard outage reports and standardized CIM IEC 61968-3 XML reports to fine-tune and evaluate Qwen2.5-7B-Instruct with and without MRT.Source: §5.1 · p. 5
  • Overall Accuracy averages Text Accuracy, which measures textual similarity, and Tag Accuracy, which measures XML tag-sequence similarity.Source: §5.1 · p. 5

5.2 Results

  • 68.95% Overall Accuracy versus 16.20% for baseline Qwen2.5-7B-Instruct (a 52.75-point gain), with Tag Accuracy rising from 3.56% to 87.17% and Text Accuracy from 28.85% to 50.73%.Source: §5.2 · p. 5

6 Related Work

Related work presents MRT as a sequence-level quality objective used across generation tasks, alongside risk-based approaches for language models and domain-specific data science.

  • MRT has been combined with maximum-likelihood training for referring-expression generation and applied to document-level biomedical translation and neural-metric analysis Panagiaris et al. [2020], Saunders and Byrne [2020], Yan et al. [2023].Source: §6 · pp. 5–6
  • Recent language-model work explores sampling-based reinforcement learning, MBR decoding and preferences, multi-prompt MBR, and MBR-BoN for alignment Wang et al. [2023], Suzgun et al. [2022], Yang et al. [2024], Heineman et al. [2024], Jinnai et al. [2025].Source: §6 · p. 6
  • Domain-specific data-science directions include privacy-preserving power forecasting, flexible Earth-observation models, graph-based electricity time-series geolocation, and paired Earth-science data Abebe et al. [2027], Dias et al. [2026], Tran et al. [2026], Potnis et al. [2026].Source: §6 · p. 6

7 Conclusion

The conclusion presents MRT with parameter-efficient fine-tuning as a practical approach for structured outage-report generation and identifies domain-specific risk design as future work.

  • MRT improves a small language model's structured power outage report generation while requiring only modest hardware through parameter-efficient fine-tuning.Source: §7 · p. 6
  • The XML-generation accuracy improvement suggests MRT may be practical for other data-science applications with structured or specialized outputs.Source: §7 · p. 6
  • Future work will investigate domain-specific sequence-level risks based on structure, semantics, spatial relationships, or other task-specific constraints.Source: §7 · p. 6
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