Burke Battered On Blackout

Photo Vinny DuPre Flanked by Queens lawmakers (l. to r.): Congressmember Carolyn Maloney, Assemblymember Michael Gianaris, City Councilmembers Eric Gioia and Peter Vallone Jr. and state Senator John Sabini, United States Senator Hillary Clinton, standing before Mike's Diner on 31st Street in Astoria, promised to aid the businesses and residents affected by the 10-daylong power blackout that struck Northwestern Queens starting on July 17. Con Edison's top executive, Kevin Burke, who on Monday was subjected to a grueling round of questioning by local lawmakers for mishandling the recent power blackout in Northwest Queens, admitted under fire that the continuing heat wave could make the area vulnerable to another blackout.

As the still unsteady power situation continues, efforts are being made to deal with the horrendous blow dealt to the area business community by increasing loans available to shop owners, some of whom are contemplating damage suits against the large utility.

Meanwhile, Burke's pummeling at the first public hearing by the City Council on the power breakdown will be followed tomorrow by an Assembly hearing and next week by two days of public inquiry sessions by the state Public Service Commission (PSC).

Photo Vinny DuPre United States Senator Hillary Clinton visited Soho on 31st Street in Astoria in the course of a tour of businesses in Long Island City, Astoria, Woodside and Sunnyside that had been affected by the Northwestern Queens electricity blackout. (L. to r.): City Councilmember Eric Gioia, Congressmember Carolyn Maloney, Clinton and Alex, manager of Soho. Behind Maloney is Assemblymember Michael Gianaris and at rear is Councilmember Peter Vallone Jr. The Assembly session, announced by Assemblymembers Michael Gianaris, Catherine Nolan and Margaret Markey, will get underway at 11 a.m. at LaGuardia Community College, 31-10 Thomson Ave., Long Island City.

The PSC hearings are scheduled for next Wednesday, August 9, at 1 p.m. and 7 p.m. at I.S. 141, the Steinway School, 3711 21st Ave., Astoria and the following day at LaGuardia Community College at 1 p.m. and 7 p.m.

The PSC said it was particularly interested in comments from customers.

In other developments over the past week, Governor George Pataki, acting on a formal request for federal aid by Mayor Michael Bloomberg, asked the U.S. Small Business Administration (SBA) to extend disaster loans to almost 100 businesses that suffered losses during the blackout.

In making the request, the governor said he still believed, "The primary responsibility for these costs [business losses] should be shouldered by Con Edison and not the taxpayer."

Con Ed is offering to reimburse businesses up to $7,000 in food losses and give up to $350 to customers for spoiled food.

The mayor also announced a new emergency $10,000 low-interest loan program to assist small businesses in Astoria, Long Island City, Woodside, Sunnyside and Hunters Point that were impacted by the blackout.

In Washington, United States Senators Hillary Clinton and Charles Schumer, in a letter to the Federal Emergency Management Agency (FEMA), which was also signed by Congressmembers Joseph Crowley (D-Queens/The Bronx) and Carolyn Maloney, asked the agency to determine if there is an appropriate federal role in assisting the stricken businesses and whether the president might exercise his authority.

Also yesterday, Assemblymember Michael Gianaris, joined by Schumer and Councilmembers Peter Vallone Jr. and Eric Gioia proposed to Con Ed a comprehensive reimbursement plan to better assist Queens residents to recover from the blackout.

Gianaris said the plan would include three months of free electricity and an increase in the reimbursement rate for spoiled food, which currently does not exceed $350.

On Monday, at City Hall, Gioia (D-Long Island City) hammered Burke for failing to tell almost 100,000 residents in the blackout area how bad the damage was.

Burke answered that he told the public to reduce their energy usage, but revealed the extent of the damage only to city administrators.

Gioia retorted, "Come on, sir, we're talking about energy conservation when half the feeders are out. Did you tell them that you're about potentially to face a dramatic crisis because half of our feeders are out?"

Vallone (D-Astoria) also emphasized the lack of information sharing and information gathering, saying, "A 12-year-old on a bike could have estimated damage better than your multi-million dollar company did."

At the conclusion of the three-hour hearing, Gianaris (D-Astoria) told reporters he came away from the hearing "very, very worried".

Referring to Con Ed, Gianaris said, "They have not changed a single thing about how their grid and their system worked. What are the assurances that this doesn't hit The Bronx tomorrow or Brooklyn the day after that?

"We're being held together by scotch tape right now, literally, on the streets of Astoria."

Alarmed at the dire straits in which most of the businesses in the blackout area found themselves, including several that were forced to close, Maloney (D-Queens/Manhattan) sent her staff to conduct a survey of the damage done.

Some businesses, she said, reported losing hundreds of thousands of dollars, and most surveyed said that the $7,000 maximum offer by Con Ed was nowhere near realistic, and didn't even include food spoilage.

Very few business owners believed their insurance would cover any part of their losses. Major losses included expensive equipment that shorted out or burned out and was not repairable. Any potential dollar income lost during the power outage could not be recovered. At no point during the blackout did Con Ed offer any assistance, many complained.

Losses ranged from zero to $100,000 (Fresh Start), the survey found.

The Bloomberg mayoral administration is trying to help the situation by ramping up efforts to attract business to the area, especially for restaurants.

Queens Borough President Helen Marshall is playing a key role here.

Marshall also testified Monday before the city council Consumer Affairs Committee. She said the blackout should not have happened because the stricken area contains a Con Ed power plant and at least four other power generating plants.

Rapping Con Ed, which she said must be held accountable for the blackout, Marshall declared: "In the 21st century, we should not have to get by on early 20th century technology."

Noting the recent developments that have vastly increased the need for electrical energy in area homes, Marshall stated, "We have the technical know-how to keep up, why can't we?"

She also stated that she wants to know why Con Ed was not more diligent in communicating with the government and the public."