Nineteen workers were trapped inside a power station on the east side of Manhattan by rising floodwaters that accompanied the surge from Superstorm Sandy.
A rescue worker, who declined to be named, said the Consolidated Edison station had suffered an explosion inside leaving workers stranded.
The power station was shut down yesterday, cutting off power to a swathe of Lower Manhattan, to 'protect electrical equipment' and to allow for quicker restoration after the storm.
The company said it cut service to two areas covering Broadway, Wall Street, and the southern tip of Manhattan.
Around 6,500 customers had their electricity cut off.
The power station said that, as of 7 p.m. Eastern time yesterday there were more than 156,000 customers in New York City and Westchester County without power.
Sea water from Hurricane Sandy's storm surge threatened to flood the underground electrical equipment, prompting the shutdown, Con Edison said.
The company will have to wait for flood waters to recede before workers can enter some facilities to assess damage, Con Edison said.
As equipment is inspected and determined safe to energize, the company said the highest priority for restoration will go to critical customer facilities that have an impact on the general public such as mass transit, hospitals, police and fire stations, and sewage and water-pumping stations.
Workers continue to monitor underground electrical delivery equipment in other areas of Manhattan south of 36th Street, along with section of Brooklyn, Queens and the Bronx, for flooding and possible shutdowns.
A few hours before the power shutdown, the company notified customers through an automated calling system that their power might be shut off.
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Con Edison spokesman Alfonso Quiroz said: "We wanted to let people know in and around these areas that there may be disruption to their service."
