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Lawmakers Denounce Con Ed For 'Paltry' Blackout $ Settlement
All were expressing their dissatisfaction with the $100 credit that Con Ed will give each residential customer affected by the 2006 power blackout as a settlement of claims presented following the power failure. The total settlement was $17 million. Business customers, some of whom were forced to close as a result of the blackout, will get double or triple that amount. Gianaris (D- Astoria), contrasted the settlements with the $100 Con Ed CEO Kevin Burke earned for every two minutes and 11 seconds that he presided over the company last year.
In a statement announcing the settlement of claims, which also covered the Western Queens Power for the People campaign, Con Edison said in a prepared statement: "Con Ed sincerely regrets the July 2006 Long Island City network power outage and its consequences. As we said at the time, our performance during the event did not meet the standards we set for ourselves, nor the expectations of our customers. We regret the extended hardships experienced by many residents and businesses as a result of the outage. We are pleased that all of the parties who actively participated in the Public Service Commission's (PSC) investigation of the outage, including those representing affected residents and businesses in the area, have reached a mutual agreement. "As part of the agreement, which is subject to PSC approval, Con Edison will make available $17 million in communitybenefit funds that will be used to assist the areas directly affected by the LIC network outages. The $17 million will be used to provide bill credits or direct payments to residents and businesses affected by the 2006 outage and to fund tree planting and other initatives to improve the environment in the affected Queens communities. Since 2006, Con Edison has made substantial changes in its operational and communication procedures, including significant improvements in tracking customer outages." The blackout covered the areas of Astoria, Long Island City, Woodside, and Sunnyside. Clinton said in a letter to Burke, "While some businesses received compensation, reimbursement of $100 and $200 is totally unacceptable. Con Ed must do better in order to properly compensate their customers." Maloney, who joined her colleague in the letter, stated, "Con Ed failed Western Queens during the 2006 blackout and again today with this totally inadequate settlement." She added, "Con Ed should have used this settlement to finally do right by the hardest hit residents and businesses, but again they're offering only pennies on the dollar." Onorato (D-Astoria) stated, "Given the horrors suffered by the people and businesses of Western Queens during the 2006 blackout, Consolidated Edison's proposal to reimburse ratepayers a mere $100 for their losses amounts to little more than chump change. And while it's nice that Con Ed is planning to issue a formal apology to those who suffered in the dark and heat for nine days, I doubt that many people will find much comfort in having this company officially admit what the residents of Queens already knew: their utility failed them miserably. "On the other hand, under the terms of this proposed settlement, Con Ed will not be able to pass along $40 million in outage related costs and $6 million in other charges to its customers, and it will provide $17 million from shareholder funds to pay for the refunds, community environmental projects, and a study on the economic and health impacts of the blackout. Members of the Western Queens Power for the People Campaign worked hard to win these concessions, and are to be commended for their efforts. "This proposal must still be reviewed by the Public Service Commission before it goes into effect, and some have pointed out that we would not even be considering this settlement plan if it were not for the inadequacy of state laws that stymie efforts to hold private utilities truly accountable for their failures. No matter how this issue isultimately resolved, it is very clear that we need to make changes in our laws to better protect all of New York's communities from the type of devastation we experienced here in Queens."Vallone (D- Astoria) stated, "It's a disgrace to pay businesses barely a dollar an hour for the disaster Con Ed inflicted on our neighborhood, which caused three businesses to close and cost others tens of thousands of dollars. Not to mention [that] customers will be giving that money all back due to the recent rate increase. Every penny that these businesses lost in this instance should be fully reimbursed because of Con Ed's gross negligence and lies." In his reaction to the settlement, Councilmember Eric Gioia (D- Long Island City) said, "It's about time that Con Edison has admitted fault and apologized for the blackout. While the $100 is a good start, it in no way covers the losses suffered by the businesses and families of Western Queens or compensates for the difficulties and hardships they endured. "The PSC needs to fix its procedures so that the next time the lights go out, customers are adequately compensated. With benefits totalling $5.5 million, Con Ed's CEO is certainly getting compensated. "It's outrageous that while they're giving Kevin Burke millions a year, this is all they'll do for the tens of thousands of affected people in Western Queens." Alyssa Bonilla, of Sunnyside, a member of the Power for the People organization, stated: "The laws that currently exist to seek justice against a privately owned utility company are inadequate." Following the Queens blackout, Gianaris headed a task force dedicated to reforming Con Edison. As a result of its recommendations, Gianaris introduced legislation that would reform Con Edison by requiring it to face competition, denying it immunity from negligence lawsuits, and dramatically increasing reimbursement rates for affected residents and businesses, as well as expanding the types of losses that would be deemed reimbursable. |
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