Today in Sunnyside, Queens, representatives of Western Queens Power for the People were joined by Assemblymember Richard Brodsky to announce a settlement with Con Edison stemming from the nine-day blackout in western Queens. Under the terms of the settlement, residents who were affected by the blackout will receive a $100 rebate in their August or September bill, along with a written apology from Con Ed. Businesses will receive slightly more.
The settlement is unprecedented. Never before has a public utility given out a rebate without the recipients being required to fill out a form, and never before has the rebate gone directly on to the bill. This rebate also comes with no strings attached -- any resident or business owner who feels he or she should get more can still sue Con Ed.
Some more details of the settlement:
Con Ed will eat the $46 million cost of dealing with the blackout. They will also spend about $17 million, split between the rebates and "greening projects" in the community. The total cost, $63 million, will be borne entirely by Con Ed stockholders; the company will still be required to make the upgrades they promised as a result of getting their recent rate increase.
Western Queens Power for the People is an ad hoc group made up of local residents who were very upset at the way Con Ed was treating the victims of the blackout. For almost two years, they fought tooth and nail to hold Con Ed responsible. That they were able to accomplish so much, especially in light of the political support Con Ed received from "certain quarters" and the lack of laws protecting consumers from their negligence, is an amazing achievement.
In a related note, Assemblymember Michael Gianaris released a statement denouncing the settlement, calling it "another slap in the face" from Con Ed. I'm not sure why.