Prohibits the ownership of electric corporations by any foreign based person, corporation or entity.
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, Iberdrola 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: This is a new bill.
FISCAL IMPLICATIONS: None to State.
EFFECTIVE DATE: This law will take effect on the ninetieth day after becoming law.
STATE OF NEW YORK ________________________________________________________________________ 5304--A 2011-2012 Regular Sessions IN SENATE May 3, 2011 ___________Introduced by Sens. BALL, GIANARIS, LARKIN -- read twice and ordered printed, and when printed to be committed to the Committee on Veter- ans, Homeland Security and Military Affairs -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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, OREXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11296-02-1 S. 5304--A 2
(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: (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.