Prohibits the ownership of electric corporations by any foreign based person, corporation or entity

1 Co-sponsor

• William J. Larkin Jr.

BILL NUMBER:S2572

Title of bill

An act to amend the public service law, in relation to prohibiting the ownership of an electric corporation by any foreign based person, corporation or entity

Purpose

This legislation will prohibit a foreign based person, corporation or entity from owning an electric corporation.

Summary of provisions

Section One - amends paragraph of section 68 of the public service law to state the commission will not grant its permission or approval, for the generation and distribution of electricity to residential customers, to any electric corporation that is a foreign based person, corporation or entity, or the majority of which is owned by foreign based persons, corporations and/or entities. In the event that an electric corporation, holding a franchise issued pursuant to this article, becomes a foreign based person, corporation or entity, or becomes majority owned by based persons, corporations and/or entities, such franchise foreign based persons, corporations and/or entities, such franchise shall immediately be revoked by the commissioner.

Section One - defines a "foreign based person of corporation" as any natural person who is not a citizen of the United States; or any corporation or entity that is not headquartered in the United States, is not chartered by the United States or by any state in the United States, is not chartered by the United States or by any state in the United States or has more than fifty percent of its ownership interests owned or held by a person or persons who are not citizens or the United States or a corporation and or entity that are not headquartered in the United States or not chartered by the United States or any state in the United States.

Section Two - this act shall take effect on the ninetieth day after becoming law.

Justification

New York's energy supply is not just a matter of convenience. It is issue affecting emergency services and homeland security. We rely on utilities for our most basic needs, like lighting and refrigeration, to our must critical needs like medical care and public safety. Two recent storms highlighted public safety concerns associated with power outages and poor response times by certain power companies. More specifically, the storms showed weaknesses by one utility, New York State Electric and Gas (NYSEG), in its ability to appropriately respond. In September 2008, lberdrola S.A., an energy company based in Spain, bought the parent company of two Upstate New York utilities -- NYSEG and Rochester Gas & Electric. Since then, NYSEG customers have noticed a progressive degradation in quality and service from their utility provider. In the interest of public safety, foreign corporations should not be allowed to control utility companies in

New York. This legislation is imperative because it protects New Yorkers during times when they need it most, in crisis.

Legislative history

11/4/11 Print Number 5304A 6/6/12 Reported and Committed to Finance

Fiscal implications

None to State.

Effective date

This law will take effect on the ninetieth day after becoming law.