Gianaris Slams Con Ed Reimbursement Proposal

Consolidated Edison's proposal to increase coverage of losses resulting from future power blackouts was slammed last week by Assemblymember Michael Gianaris because it does nothing to help the thousands of Western Queens residents and businesses hurt by last summer's power failure.

Gianaris (D- Astoria) stated, "Con Edison won't be fooling anyone with this proposal, which does nothing to help the businesses who suffered through last summer's blackout. If these increased rates are justified for the summer of 2007, why will they not be provided to the victims of 2006?"

Last week, Con Ed announced it had proposed raising from $7,000 to $9,000 the amount that damaged businesses would be eligible for in future blackouts. Residents would be eligible to get $450 instead of $350 to replace spoiled food.

The increases must be approved by the state Public Service Commission (PSC). Con Ed has already paid out about $14 million for last summer's nine-day blackout in Astoria, Long Island City, Woodside, Sunnyside and East Elmhurst that began in mid-July.

Some businesses suffered damage far in excess of the $7,000 reimbursement limit and were forced to close down. The proposed increase to $9,000 wouldn't help much in many cases.

Gianaris, who has kept a close watch on Con Ed since the blackout, said the utility's proposal to the PSC ignores other aspects of their power delivery operations.

"Con Ed's plan would not implement needed structural reforms, which should increase compensation for longer blackouts and include reimbursement for lost business and damaged machinery in addition to lost perishables," Gianaris said.

He added that he intends to introduce legislation in the coming weeks that will enact these and other reforms outlined in the Assembly Task Force report issued on the 2006 blackout. Gianaris organized the task force which issued the report.

- John Toscano