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The Price and Politics Of the Power Grid

By
Real Estate Agent with Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605

Downtown White Plains NYBefore I utter one more word, I will say the obvious – the devastation of Hurricane Sandy has been overwhelming. Three branches of my family have strong roots on Staten Island and I also have a 90-year-old aunt who resides in New Jersey.  The loss of life, livelihoods and life savings is unfathomable and close to my heart.  None of what I am about to write regarding the power grid is meant to take away or diminish the scope of the tragedy.

 

The above photos was taken last Saturday night.  It was taken of the heart of downtown White Plains.  Note that there are lights burning brightly.  The people inside those buildings are undoubtedly warm and comfortable.  They have lights, heat, hot water – all the basics we generally take for granted.  Contrast that to my  trip home down Ridgeway in suburban end of town. It was so inky dark that I was counting exclusively on the beams from my headlights to slice through the darkness.  There would be an occasional break in the darkness when I would see light coming from a home that had a generator.  But for the most part, the entire area was shrouded in the same darkness that it had been for the past five nights since Hurricane  Sandy had slammed into New York.

When finally arrived home, I was grateful that mine was one of the few blocks in the suburban end of town that had retained power.  I was thankful for two reasons.  I know I was very lucky – this time.  My home has been prone to extensive outages in the past so I knew I was in the “line of fire”.  The second is that my experience with outages taught me one thing:  once you lose power, you generally will not get it back for at least a week.

For God’s sake bury the #$#!ing Wires!

And that is what sets me and others on the southern suburban end of town  apart from my friends who live in the downtown.  Although they live just two miles away from me, when they lose power, they expect to get it back tout suite.   An outage lasting more than 24 hours is unthinkable if not unfathomable to them.

So what makes that part of town so different from my area that seems to suffer from at least 1-2 major  power outages lasting upwards of one week per year?   The answer is that they buried the wires for the downtown population while the residents in south end still have the bulk of their electrical grid on spindly and very vulnerable poles.

I checked on the status of some former clients and friends…and guess what??? Everyone who lived in areas where the wires were buried had power.  The results were far more problematic for those who had their electricity delivered on poles.  One friend of mine STILL does not have power after 10 miserable days.

Its time for a concerted program to systematically bury the #$#!ing wires.  It won’t happen overnight – but as we gradually lay out the new grid, the more vulnerable areas will be more easily as more and more of the grid becomes less vulnerable. If we had started such a project 5 years ago, we would be much further along in the recovery process than we are now.  We need to start NOW and there should be no more hemming and hawing.

 This is not a trivial issue:

There are elderly, frail, infirm people with special needs who haven’t had power in freezing weather for 10 days now.  Something like this can have grave implications and create serious complications for those who are not hail and hardy.  This is a health and sanitary issue and it is something that simply shouldn’t happen – particularly with the lead time Con Ed had for this particular storm.

Third World America….

When I was a kid, a power outage lasting more than a couple of hours was a rare occurrence and was certainly not typical or expected.  A 24 hour blackout would have resulted in hearings and disciplinary action for the utility.  Last summer I was at Coffee Labs  and I heard two high-school kids talking.  “Well, it wasn’t so bad with this last storm…we only lost power for 4 days!”  When I was their age, I could not conceive of a 2 day blackout let alone 4 days not being so bad.

So when the pessimists among us say that  we are degenerating into a third world nation – I would say that we are already there.   If our utility companies can not be relied upon to maintain the grid and fix power outages in what is a reasonable amount of time – say 48 hours – then we are living in a 3rd world nation.   The deterioration is brutally obvious to anyone over the age of 40 who has lived in Wetchester a good chunk of their lives.

“But its too expensive to bury the wires!”

That’s what they said about the NYC subway system, the interstate system, Hoover Dam, the Brooklyn Bridge and any number of other public works projects that helped create American Exceptionalism.   We have been resting on the laurels of our so-called “exceptionalism” and eating our seed money for decades.  The bill has come due and Westchester needs to act or watch itself deteriorate from its New York “golden apple” status to something more reminiscent of the movie “Deliverance”.

An “iffy” grid can impact home values..

In fact, its  too expensive NOT to act.  Over the past 50  years, Westchester has been a magnet for businesses and this has brought us revenue and residents.  But businesses don’t take kindly to having to work by candlelight every time we have a bad storm.  Particularly if they are paying top dollar to locate  in one of the most expensive areas of the country.  As the reputation for prolonged outages increases, business and industry will shy away from our area.  The influx of residents will decrease and that will hit homeowners right in the pocketbook when it comes time to sell their home.

A note about Con Edison:

In researching this blog I read several articles.  Con Ed pays its investors a fat 4% dividend.  It also reported a 15% increase in profits for Q3 2012 thanks to rate increases.   In fact, every time we have a big storm Con Ed  seems to come out of the woodwork with its hand out for an increase “because they need to make repairs to the grid”.  But the grid just keeps getting worse and worse.  So what are they doing with our money?  We pay the highest rates in the country and they get higher every single year while service deteriorates even more.

The deregulation of the electrical grid is too extensive a discussion for this blog, but it has created a disincentive to maintain customer service in favor of pleasing shareholders.  A couple of articles site a dramatic decrease in reliability since the mid-nineties. Even when controlling for increasingly difficult weather events, the incidents of prolonged blackouts have more than doubled.  This assessment confirms my anecdotal experiences.  It does seem more than slightly coincidental that the time frame of the mid-nineties coincides with the deregulation of our grid.

The question that must be answered is this: Is Con Edison betraying its public duty and the public trust by subjugating the needs of its paying customers to the wants and desires of its shareholders?   We must never forget that ConEd is a public utility and it has a public trust and a public  duty.  For this particular event, its performance has been 100% unacceptable. They had days to prepare and the result is that power outages continue for thousands in sub-freezing weather for over 10 days.

Further Reading: 

U.S. Electrical Grid Gets Less Reliable…

Adding Smarts To The Electrical Grid (NPR)

Frustration and anger mount over lingering power outages after Sandy…

The US Electrical Grid – Will it be our undoing? 

Power Grid Vulnerablility: Where do we go from here?

When customers are angry, how do companies justify shareholder payouts?

Con Ed 3rd-Quarter Profit up 15% helped by rate increases.

POWER: Con Ed puts big focus on Big Apple….

PG&E’s Power Restoration Team Diverted to New York’s Hardest Hit Areas:

The Price and Politics Of the Power Grid

© 2012 – Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

Andrea Bedard
Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD
Fluent in Real Estate & German, M.A. ABR ASP CIPS

Hi Ruthmarie, I agree with you 1000% and have blogged about it in my 'after Sandy' post as well. I just do not get it. The big power companies whine how expensive it would be but I just cannot believe having to restore power time and time again, requesting and needing out-of-State help and rescue operations don't cost a fortune .... not too mention the amount of spoiled food people have to throw out, having to make alternate arrangements b/c it's just too damn cold in one's home .. And somehow the loss of life through electrocution or carbon monoxide poisoning doesn't even figure into their 'calculations'. 

I am fortunate to live in a subdivision that has buried power lines. It is the reason we didn't lose power during Sandy and the freak Derecho storm in June. None of my clients, friends, colleagues were that lucky and had to endure up to 10 days without power. They also had to pay for the electric supply that wasn't supplied. Go figure.

I just don't get it.

P.S. I'm glad to hear you are OK and I hope all your family is as well.

Nov 09, 2012 05:16 AM
Beth and Richard Witt
New York, NY
The best Retired Brokers !!!!

Its time for a concerted program to systematically bury the #$#!ing wires.  You bet it is... but is anyone listening???  Lipa was so unprepared for this storm that we still have folks without power... we were without power for 9 days...  Not sure what folks can do about this... I'm starting to feel like we are all at the mercy of the utility companies... we need them a lot more than they need us...

I'm going to re-blog this because I think people need to be aware of what is going on... and I believe that knowledge is power...

God Bless and thanks for a great post!

Beth

Nov 09, 2012 05:36 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Ruthmarie- we lived on a street in Delray and were only without power for 3 days once after a hurricane.  Before we moved in one of the neighbors had asked all of the other neighbors to chip in and have the lines buried but for some reason no one wanted to.  Bury the lines!!!!

Nov 09, 2012 05:52 AM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Andrea...Great points and thank you!  I think it has a lot to do with who pays for what.  Con Ed (or any other utility for that matter) - does not care about what the individual consumer has to shoulder for themselves.  Hotel rooms, food spoilage (ConEd gives everyone a maximum of $100 - BIG DEAL! - and you have to have receipts - how many people keep reciepts on their chicken legs just in CASE there is a storm before you use them?)  There are also days and days lost by businesses both large and small.  There is the TIME spent.  I now have my disaster list - and the newest item on the list   Every time a big storm comes - these days 2-3 times a year - I have to prepare for being without power for at least a week!  Its expensive and time consuming.  If I'm out of power, my business is crippled for a week as well.  But none of that matters to ConED because they aren't held to account for the damage that they do.  There is no penalty for leaving people in the cold and dark for 14 days - so for them it is cheaper not to fix th grid, but to patch it.  Some of those links are eye-popping..You might want to check out the NPR podcast...

Hi Beth, 

I know that you guys got hit hard too!  Im sorry you were out for so long.  Some friends of mine are STILL out of power. It is now 10 days.  They are expecting to get power back by Monday - 2 weeks after Sandy slammed into NY.  

You like Andrea might like to read the links I put in.  Some of them show how serious a problem this is.  Apparently the "grid" has not been truly upgraded since the mid-nineties when deregulation started and we are now running a grid patched together with thumb-tacs and scotch tape. 

 

Hi Kathy, 

I agree - you have to go through one of these to know how serious it can be to be without power for days on end.  BURY the wires!

 

 

 

Nov 09, 2012 09:03 AM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

If anyone is interested in our infrastructure issue, started a new FB page:

http://www.facebook.com/BrokenInfrastructureNY

You can just read or if you are adventurous, you can add photos of infrastructure issues from your area. So we can build a "portfoilo" of shame - regarding our infrastructure. 

Nov 09, 2012 09:08 AM
Andrea Bedard
Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD
Fluent in Real Estate & German, M.A. ABR ASP CIPS

Hello again Ruthmarie, you have done a lot of research and I appreciate that. I will def. check out all the links.

I wanted to add something that really drives home your point about how outdated (to put it mildly) the grid is. Every time we have family or friends visit from Germany they all take pictures of the power lines and comment in disbelief. It's incomprehensible to them how a country like the USA does not have it all buried.

Nov 09, 2012 01:10 PM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Andrea - That's really interesting.   I have a friend from Switzerland who is here for a while and she said the same thing.  She was in NYC for the hurricane. Now granted - Switzerland is not known for its hurricane season, but they do get a lot of wet weather and are not strangers to winter storms. They are seldom out for more than a couple of hours.  So what happened with respect to Sandy stunned her.  She expected, given the scope of the storm, that outages might go on 24-48 hours - but days and days and days - it was obvious to her that we were not maintaining things the way it was done in Europe. 

This isn't trivial.  If we don't keep up- we will get left behind.  This is a business issue as well. My county is trying to attract young people and businesses and its an uphill climb.  Infrastructure issues don't help at all.  What business wants to take at trip back to the 18th-19th century and do work by candlelight every six months.   It just doesn't work. 

Nov 09, 2012 02:10 PM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!
Hi Ruthmarie, thank you for sharing the link about the infrastructure issue. This is of great information to all concerned citizens out there. All the best and keep up the good work.
Jul 08, 2013 11:48 PM