NYSEG Selling Out to Foreign Ownership
By Jim Willis on Nov 6, 2007 in Business, Energy | Printable Version
I don’t have anything against other countries per se. But I have a big problem when companies from other countries own pieces of the America’s infrastructure–like gas & electric companies. Energy East, the parent company of New York State Electric & Gas (NYSEG), will have a meeting in a few weeks in Manhattan to get shareholder approval to sell out to Iberdrola, based in Spain. I don’t know anything about Iberdrola–it may be a fine company. But foreign ownership of key infrastructure should not happen.
Energy East claims this will be a good deal for the shareholders. So we ask, “What’s good about it?” I’ll tell you what’s “good” about it: The people at the top get truckloads of money as their reward for selling out. This usually applies to 4-5 people, and no doubt they plan on an early retirement for their efforts in selling out. On the other hand, consumers get shafted (even more than they are now) as prices always go up and never down when these things happen. And as a bonus, a foreign owner will have control over a key piece of infrastructure in the United States. Sweet eh?
Energy East has a tag line on their site, nice and big right on the home page. Let me help them edit that just a bit:
We are Energy East. Committed to our
customers,employees, shareholders,and the environment.
Technorati Tags: Binghamton, Energy East, NYSEG, Iberdrola
Fred Sturzenbecher | Nov 26, 2007 | Reply
I have to agree with Jim Willis’ comments. Niagara Mohawk sold out to a foreign company a few years back and after this deal, almost all of upstate New York utilities will be controlled by foreign interests. Most of the utility stock is held by funds which have no interest in anything except making a good profit. The executive branch likes the deal because they make out like bandits. The CEO of Energy East stands to get 25 million dollars in personal compensation on the deal, and he still keeps his job. Where are our congressmen and senators? One is too busy running for President to notice what is happening in the state, and I haven’t heard a word about it from the other one.
Jim Willis | Nov 26, 2007 | Reply
Fred, thanks for this excellent comment! I was not aware of how much the CEO would make–I only knew (from having seen it before so many times with other large companies) that he would make a large sum. I was also not aware of NiMO. What a shame.
You’re absolutely right–where is the outrage by our representatives? How about Maurice Hinchey as well? He’s our congressman–but so far, not a peep. I wonder if Energy East has contributed to the campaigns of any of these people?