S2572-2013 Actions

• Jan 22, 2013: REFERRED TO ENERGY AND TELECOMMUNICATIONS

S2572-2013 Memo

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.

S2572-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         2572
 2013-2014 Regular Sessions
 I N  SENATE
 January 22, 2013
 
 Introduced  by  Sen.  BALL  --  read twice and ordered printed, and when
 printed to be committed to the Committee on  Energy  and  Telecommuni
 cations
 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
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. The opening paragraph of section 68 of the  public  service
 law is designated subdivision 1 and a new subdivision 2 is added to read
 as follows:

 2.  (A) THE COMMISSION SHALL 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
 FOREIGN BASED PERSONS,  CORPORATIONS  AND/OR  ENTITIES,  SUCH  FRANCHISE
 SHALL IMMEDIATELY BE REVOKED BY THE COMMISSIONER.
 (B)  FOR  THE  PURPOSES  OF  THIS  SUBDIVISION, "FOREIGN BASED PERSON,
 CORPORATION OR ENTITY" SHALL MEAN:

 (1) ANY NATURAL PERSON WHO IS NOT A CITIZEN OF THE UNITED STATES; OR
 (2) ANY CORPORATION OR ENTITY THAT:

 (I) IS NOT HEADQUARTERED IN THE UNITED STATES,
 (II) IS NOT CHARTERED BY THE UNITED STATES OR  BY  ANY  STATE  IN  THE
 UNITED STATES, OR
 (III)  HAS MORE THAN FIFTY PERCENT OF ITS OWNERSHIP INTERESTS OWNED OR
 HELD BY:

 (A) A PERSON OR PERSONS WHO ARE NOT CITIZENS OF THE UNITED STATES, OR
 (B) CORPORATIONS AND/OR ENTITIES THAT ARE:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD07280-01-3
 
       S. 2572                             2
 (I) NOT HEADQUARTERED IN THE UNITED STATES, OR
 (II)  NOT  CHARTERED  BY  THE UNITED STATES OR ANY STATE IN THE UNITED
 STATES.
 

S 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

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