Wind warnings and special weather statements remain posted for Vancouver Island and British Columbia's inner south coast, but it appears the region has dodged significant damage from a powerful storm.

Environment Canada says a rapidly deepening cyclone approached waters off the coast Saturday night and peak wind speeds of at least 100 km/h were reported at three locations off Vancouver Island on Sunday.

Winds have eased slightly, but the weather office says gusts of 90 to 100 km/h are still possible in many areas as the storm tracks northeast and is expected to pass over northern Vancouver Island.

BC Hydro says thousands of customers across Vancouver Island and the Gulf Islands started the day without power, while residents on Cortes Island, east of Powell River, are not expected to have electricity restored until later.

It says it's also working to restore power to several thousand customers on the Lower Mainland and Sunshine Coast. B.C. Ferries cancelled sailings to and from Vancouver Island, the Sunshine Coast and Gulf Islands for much of the morning.