UPDATE (5:08 p.m.) - Fire personnel have revised their original estimate of the fire's size to about 15 acres.
The smaller number comes after crews on the ground and in the air were able to get a better look at the fire in the daylight.
San Luis Obispo City officials also say approximately 575 people from 329 addresses were evacuated Tuesday morning.
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UPDATE (11:50 a.m.) - Approximately 80 homes were evacuated early Tuesday morning in San Luis Obispo as flames erupted on a nearby hillside.
The fire was first reported a little after 4:30 a.m. off Bishop Street, burning close to the San Luis Obispo County Probation Department.
It burned about 50 acres before firefighters were able to stop it from spreading further.
"As you can see behind me, we do have warm, dry fuels that once ignited, rapidly spread up the hill," said Chief Todd Tuggle, San Luis Obispo City Fire Department. "It was a very warm evening or very warm morning. Winds were not necessarily in the crews' favor. So we had some pretty significant winds coming downhill, blowing back into the structures."
Homes on the east side of Johnson Avenue from San Luis Obispo High School to Sydney Street were evacuated, but firefighters were able to prevent the fire from spreading to any homes and no one was hurt.
Power was out in the area while the fire was burning, but it has since been restored.
The cause is under investigation.
This is the second time in less than a year this neighborhood has faced a wildfire. The Lizzie Fire broke out the day before Halloween on the hillside above San Luis Obispo High School.
"It's in nearly the same exact spot as the Lizzie Fire," Chief Tuggle said. "So as we can see, the fuel does grow back after about a year. It's been about 11 months since the Lizzie Fire. It's a constant concern of ours in this community and as you look around and look at the beautiful landscape around us, it also is a fuel for potential wildland fires."
The Lizzie Fire burned 124 acres. No homes or other structures were damaged. A 15-year-old suspected of setting the fire was arrested on a charge of arson.
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UPDATE (8 a.m.) - San Luis Obispo police say everyone evacuated due to the fire can now return home.
Fire crews remain working on the hillside where the fire broke out.
SLO City Fire reports the fire burned about 50 acres. Forward progress has been stopped.
Classes will take place as scheduled at San Luis Obispo High School.
Johnson Avenue is open.
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(5:35 a.m.) - Firefighters are on the scene of a vegetation fire burning in San Luis Obispo.
It was reported at around 4:41 a.m. Tuesday off Johnson Avenue in the area of Sydney and Flora streets.
Evacuation warnings went out to people in the immediate area and power is also out for some people.
By 7 a.m., it appeared firefighters were getting a handle on the flames.
No word on the cause of the fire or whether any structures have been damaged.
The fire is not far from San Luis Obispo High School. School officials tell KSBY classes will be taking place on Tuesday.