Yes, outage is a Scrabble word!
...and is worth 7 points in Scrabble, and 9 points in Words with Friends
outage
Noun
1. The amount of something (as whiskey or oil) lost in storage or transportation
2. A temporary suspension of operation (as of computers)
What Scrabble words can I make with the letters in outage?
5 Letter Words
4 Letter Words
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3 Letter Words
2 Letter Words