Schumer, Gianaris, Gioia, Vallone: Queens Businesses Must Get Full Restitution from Con Ed

Schumer, Gianaris, Gioia, Vallone: Queens Businesses Must Get Full Restitution From Con Ed

Federal, State and City Loan Programs Cannot Meet Profound Business Losses

Schumer, Who Got Con Ed Tens of Millions to Get Back on their Feet Following 9-11, Says Now Con Ed Must Deliver for New York

In light of the crushing losses faced by Queens businesses as a result of last week's power outages, today Senator Charles E. Schumer, along with Assemblyman Michael Gianaris and Councilmen Eric Gioia and Peter Vallone called on Consolidated Edison to provide full restitution to the businesses effected. Con Ed is only offering up to 7,000 dollars for businesses effected by the blackouts to pay for the loss of perishable goods, such as food. Schumer, who fought to get Con Ed tens of millions of dollars to help pay for infrastructure damage following September 11th, said today that Con Ed should deliver for New York, especially since New York was so helpful to Con Ed when it needed assistance.

"It's time that Con Ed prove that they put their customers first," Senator Charles E. Schumer said. "For a business that was shut down for 10 days and lost food, equipment and other necessities, 7,000 dollars will barely make a dent. When Con Ed was in need, New York and America delivered for them, it's time they do the same."

"The economy of western Queens at this moment is hanging by a thread," said Assemblymember Michael Gianaris (D-Astoria. "Our proposal to Kevin Burke is the least he can do to begin making up for the massive damage caused by Con Ed's blackout. Anything less continues to show that Con Ed is not interested in getting western Queens back on its feet."

"The people and businesses of Queens desperately need help," said Councilman Eric Gioia, who represents Woodside, Sunnyside, Long Island City, Astoria, and Maspeth in the New York City Council. "Small businesses are the backbone of our City's economy, especially here in Queens, and for them, this wasn't just a loss of power, this was a loss of profit. The losses we incurred are nothing short of devastating, and Con Ed needs to step up, do the right thing, and get our residents and our businesses back on their feet. Queens deserves no less."

"People lost wages, income, equipment, and over a week of their lives. They stood on line like refugees waiting for necessities," said Councilman Peter Vallone Jr. "It is laughable that Con Ed thinks 350 dollars for perishables is reimbursement. Both residents and businesses should be fully reimbursed. There are businesses that still haven't been able to re-open. Con Ed must be held accountable."

Following the blackout, Con Ed offered business owners 7,000 dollars in reimbursement to cover perishable goods, such as food that spoiled during the outage, which lasted up to ten days in some areas. The reimbursement did not cover any of the other expenses incurred, such as loss of equipment and loss of business. The legislators said today that instead of imposing an artificial cap of 7,000 dollars, Con Ed must allow businesses to take a thorough inventory of how much money they lost as a result of the power outage, and give full restitution to these businesses.

Schumer said today these businesses should also take advantage of the available federal loan programs, but that these programs alone will not be able to meet the needs of the businesses who have lost so much. Businesses will be able to apply for Economic Injury Disaster Loans (EIDL) once the Small Business Administration declares the Queens blackout a disaster. For qualifying businesses, these loans can provide up to $1.5 million for businesses who suffered as a result of the power outages based on need and ability to get credit elsewhere. The interest rate on EIDL's cannot exceed 4 percent per year and the term of these loans cannot exceed 30 years. Schumer said today that while the loans were a start, they would not be able to provide businesses with what they needed to get back on their feet, since they are loans with interest, and not grants.

"This is Con Ed's fault, and storeowners shouldn't face the prospect of more debt because of these blackouts," Schumer said.

As part of the $20 billion package that Senator Schumer and others got for New York following September 11th $750 million of it was allocated to rebuild Lower Manhattan's destroyed telecommunications and energy infrastructure. The money was channeled through the Lower Manhattan Development Corporation to help utilities like Con Ed rebuild destroyed power facilities. The money was provided to help prevent the utilities from having to pass rebuilding expenses onto New York's rate payers through long-term rate increases. Of that allocation, Con Ed has already received $63 million and is likely to get over $300 million.

http://schumer.senate.gov/SchumerWebsite/pressroom/record.cfm?id=260427&&year=2006&