The live power lines fell at the intersection of 108th Street and 48th Avenue just before 11:30 p.m. Monday.
The fire tore through three square blocks of wires from 45th to 48th avenues and from 104th to 111th streets.
The power lines fell onto numerous cars, setting them on fire.
Meanwhile, several manhole covers blew off in the neighborhood.
"We had cars catch on fire, but thank God no one was hurt," FDNY Deputy Chief Mark Ferran said. "We had no extension to any of the buildings, so right now we have all the fires under control."
The downed wires knocked out power to hundreds in the neighborhood.
Con Edison workers were expected to work through the day to restore power.