Sale of NYSEG to Spanish Company Iberdrola Hits Big Roadblock
By Jim Willis on Jan 19, 2008 in Business, Energy, Government & Politics | Printable Version
Hallelujah! The New York State Public Service Commission (otherwise known as the PSC) is recommending against the Spanish takeover of Energy East/New York State Electric & Gas. This is good news! It doesn’t mean the takeover of a key piece of the U.S. infrastructure by a foreign company still won’t happen…but it sure slows it down. And it gives me a glimmer of hope that it won’t take place. Fingers crossed that wiser heads will prevail and stop the sale of Energy East/NYSEG.
The PSC is correct in their assessment: There is no advantage to ratepayers (and taxpayers) in this $4.5 billion sale. My take: Infrastructure like roads, bridges, ports and power companies should NEVER be sold to a foreign interest (see my previous post on this). It’s a homeland security thing. We need to protect our country. This is the United States of America, not the United Countries of the World. I think the Spanish people are great–it’s nothing against them. But they will not have our best interests at heart when it comes to the security of our country.
Iberdrola thought they could sneak in to our country and pick off an easy mark (and they found it with the money-grubbers running Energy East) to get themselves established here, before moving on to bigger targets. No thanks. Iberdrola can keep the alternative energy schemes they want taxpayers and ratepayers to fund. Let’s keep NYSEG in U.S. hands.
As Matt Drudge says, Developing…..
Technorati Tags: New York Public Service Commission, PSC, Energy East, NYSEG, Iberdrola, homeland security
WHB | Jan 21, 2008 | Reply
Jim,
I hold many of the same concerns which you do. At the same time how do we then square our nationalism with our capitalism? A free and open market is critical to the longterm health of our economy (something New York doesn’t have). Granted the Spaniards may not be better energy providers and just as greedy. But the climate for their existence has been created by the state of New York. Unless there is deregulation and competition it won’t matter who owns nyseg. In regards to national security. Foreign ownership of key interests is nothing new. It seems that in the wake of 9/11 we are just suddenly more aware of it. The answer in my mind is not protectionism but liberated capitalitm (some would say Reagonomics). Build it better, run it better, service the world better and in turn own the world. We are being beaten at our own game, largely because the government has handicapped the American business world. I tend to favor capitalism as our first line of defense against foreign infringement. WHB
Jim Willis | Jan 23, 2008 | Reply
Thanks WHB. Points very well made. Your views are much more Reaganesque than my own on this matter! I freely admit when it comes to national security I am a populist/protectionist in the mold of Pat Buchanan. My own view is a modified view… free markets and less regulation, and let capitalism sort it out for the vast majority of businesses. (I don’t like the overwhelming abundance of Chinese made goods at Wal-Mart, but I don’t believe in regulating it either.) But for those items that are key infrastructure–like power and ports–U.S.-only ownership. That’s the distinction I make.
I freely admit my own thinking may not be 100% consistent on this. You’ve given me more to think about. Which is why I like these comment areas!
Thanks again!
- Jim
WHB | Jan 23, 2008 | Reply
Well Jim, for what it’s worth it’s not that I don’t have some of the same fears/concerns that you do with foreign ownership. While it rankles me I resist the temptation to be swayed by conspiracy theorists. The recent stock market is a case in point. Regardless of who owns our streets or ports our market still makes the world go round. The world markets just dropped an average of 4.5% and now they are rebounding. All on news and speculation from our pathetic FED. We are still the strongest economy in the world (regardless of what CNN wants you to believe or Hillary for that matter). That being said, 3/4 of my portfolio is in foreign markets and companies. So it is hard for me to knock foreign investors when I have a stake in everything from water to rare earth from China to Australia. Tragically the rest of the world may own my country but I am not a hypocrite
(criminal?). That last thought reminded me of something somebody else once said. WHB
Franco DiRosa | Jul 17, 2008 | Reply
You guys are joking right. Capitalism and NYSEG in the same sentence, that’s too funny. Capitalism requires competition, where’s that? NYSEG’s electric charges are the 3rd highest in the country followed by Connecticut and then Hawaii. Pennsylvanias is right around the national average of 9 cents a kw/hr. NYSEG is twice that. What’s going to be really sad to watch is when we start seeing natural gas production increase here in NY while at the same time our NYSEG rates will go up also. In other states, or countries the opposite would occur, that is the people benefit from the resources of their own state/country. Here in NY it is only those that are registered for kickbacks.