A power equipment protection system is provided. The power equipment protection system includes a first trip unit configured to monitor a first circuit, a second trip unit configured to monitor a second circuit that is downstream from the first circuit, an arc-flash (AF) sensor configured to detect an arc flash, an AF mitigation device, at least one current sensor, and a controller. The power equipment protection system is operable in a first mode and a second mode, wherein in the first mode, the controller is configured to activate the AF mitigation device based on signals generated by both the AF sensor and the at least one current sensor, and wherein in the second mode, the controller is configured to activate the AF mitigation device based on signals generated by at least one of the at least one current sensor and the AF sensor.