Senate Bill S2572

                                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.