Business
The Dec. 7 power outage lasted about 27 hours, casting a shadow over Nantucket’s annual Christmas Stroll.
Nantucket businesses have reported approximately $1.5 million in estimated losses after a power outage struck downtown during the island’s annual Christmas Stroll — typically one of the most profitable times of year.
More than 1,400 electric customers were impacted by the Dec. 7 outage, which began around 10:18 a.m. and lasted about 27 hours, National Grid told Nantucket officials. Though roughly 1,200 customers regained power within a few hours, full restoration didn’t come until Sunday afternoon.
The effects on Nantucket’s businesses were staggering; customers shopped in the dark. Vendors reportedly struggled to take credit card payments. The town required affected restaurants and bars to close at 4:30 p.m. Saturday, and as the Nantucket Current reported, some were asked to throw away food that couldn’t properly be refrigerated.
The Nantucket Island Chamber of Commerce, which hosts the Christmas Stroll, estimates just over 200 member businesses are located on streets that were affected by the blackout for varying periods.
“This immediate weekend impact of the power outage is not limited to these 30 hours,” Peter Burke, the chamber’s executive director, told the Nantucket Select Board last week. “It will continue to ripple throughout the winter and into the spring, and the loss of confidence in our infrastructure was felt by our visiting guests, as well as our local patrons.”
How were Nantucket businesses impacted?
The chamber surveyed local businesses in an attempt to gauge economic impact and heard back from 67 of them, putting the self-reported losses in the ballpark of $1.5 million, Burke said in an email to Boston.com. Businesses in the food and beverage industry reported another $170,000 in estimated lost gratuities, he noted.
“I would confidently say, there are additional lost gratuities in the retail sector,” Burke added, though he pointed to the variability of retail commissions and sales incentives. Burke said he believes the total estimated losses would rise if more businesses responded, though he suspects the chamber has already heard from many of the establishments that saw the greatest impact.
Speaking during the Select Board meeting, he encouraged businesses to keep track of employee shifts and revenue and inventory losses for insurance claims.
“We have heard from some business owners and industry professionals that many insurances may not cover losses due to the length and nature of the outage, but … having a record of filing a claim is really important for any potential future financial support,” Burke said.
What caused Nantucket’s power outage?
The outage was the result of a fault on a National Grid underground distribution cable, per the state’s Department of Public Utilities. Writing to National Grid New England President Lisa Wieland, the agency said the timing and duration of the outage were “especially concerning” given the Christmas Stroll.
“The Department will evaluate whether this outage and National Grid’s response complied with its obligations under these regulations and standards,” DPU Chair James M. Van Nostrand wrote in the Dec. 11 letter.
Additionally, he said, “the Department will assess whether National Grid prepared appropriately for this contingency, given the constraints of serving Nantucket Island and the significance of this event to the Nantucket economy.”
Electric distribution companies may face penalties for failing to meet service quality performance standards, the letter noted. And spanning more than a day, the Nantucket outage was “the longest one that we’ve had,” said Shaun Vacher, vice president of electric operations for National Grid New England.
“What happened last weekend, we do not describe that as business as usual for us by any means, and we apologize,” he told the Select Board, adding that National Grid is still trying to determine what caused the fault.
“It’s sort of like an autopsy that’s going to reveal, hopefully, something that happened, whether it was manufacturer, our own installation processes, if there are environmental conditions that took effect,” Vacher explained. “That analysis will take a couple weeks.”
In the meantime, he said National Grid already has “a solution in flight” to ensure backup power for Nantucket’s downtown area in case of future outages.
“That’s coming to full permitting next month,” Vacher added.
“It’s important to note that we’re not waiting for the cable to fail before we enact a solution for it,” he said. “The solution that we’re putting in place resolves a redundancy/resiliency issue. So if, for some reason, something were to happen, we can restore customers very quickly. That’s the purpose of the solution. It’s not because the cable’s getting older and we think that it’s going to continue to have these issues.”
What now?
Addressing the Select Board, Burke described a “heartwarming outpouring of support” from businesses and community members in the wake of the blackout. For example, local boutique For Now launched a limited-edition collection of embroidered “Lights Out” merchandise to support service industry workers impacted by the power outage, raising thousands of dollars within a day.
Burke said he’s connected For Now with others in the community to help form a relief fund.
“I want to keep the momentum going,” he said. “We also need to be realistic and careful that whatever donation system is developed meets legal requirements, tax requirements, accounting, and is equitable to any that may draw from it.”
Taking to Facebook, the chamber offered some additional tips for community members looking to help local businesses as they recover from the blackout: “Support retailers, buy gift cards to restaurants, and keep your spirit up, Nantucket!”
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