By Nathan Duke
Western Queens elected officials blasted the state's decision to fine Con Edison $9 million for not meeting reliability standards last year, calling the fine a “drop in the bucket.”
State Assemblyman Michael Gianaris (D-Astoria) and City Councilman Peter Vallone Jr. (D-Astoria), both of whom blasted the utility following its response to the 10-day western Queens blackout in July 2006, said they thought Con Ed should pay a stiffer fine.
“For an unaccountable monopoly that paid its CEO [Kevin Burke] $5.5 million last year, this so-called penalty is a drop in the bucket,” the assemblyman said. “If we hope to avoid similar disasters in the future, we must get more serious about reforming Con Edison.”
The utility has already paid an estimated $31 million in compensation to western Queens residents and businesses following the 2006 blackout.
“We'll abide by the commission's ruling,” a utility spokesman said of the PSC's $9 million fine.
The state's Public Service Commission ordered the utility last Thursday to pay a total $9 million for not meeting standards of reliability toward its customers. The fine included $5 million for frequent interruption of delivery in its underground electrical system and another $4 million for interruptions in its above-ground system, the PSC said.
In its decision, the agency cited a June 2007 blackout that left 137,000 Upper East Side and Bronx residents without electricity.
Vallone said he believed that not only was the penalty against the utility too meager, but that Con Ed's level of service should not allow the company to continually raise customers' rates.
Earlier this year, the PSC approved a $425 million rate hike that allowed Con Ed to raise utility bills by as much as 4.7 percent per year. The hike would raise bills for residents using 300 kilowatt-hours of electricity by $4.25.
“Con Ed was allowed to massively raise the already highest rates in the country for what has been officially declared to be shoddy service,” Vallone said. “Something needs to change.”
Reach reporter Nathan Duke by e-mail at nduke@timesledger.com or by phone at 718-229-0300, Ext. 156.
