NYSEG Covers Up Alternative Bids in Favor of Spanish Company Takeover by Jim Willis

At least the New York State PSC (Public Service Commission) is not sleeping while Energy East, parent of NYSEG (New York State Electric & Gas) seeks to sell out to a foreign owner. See PSC holds off approval of Energy East-Iberdrola deal in today’s Press & Sun-Bulletin.

The PSC is digging and has found there were two other offers for Energy East. But the big guns at Energy East don’t want to disclose who, or what, those offers were. I wonder why? Could it be the other offers lacked some of the gold in the golden parachutes the people at the top of Energy East will get from Iberdrola? You can be sure the people at the top are looking out for themselves and themselves only, and don’t care a wit for the workers or the ratepayers. No doubt they will move out of the area once this deal is done, meaning they won’t have to live under the higher rates that will surely come as a result of their actions.

The whole thing stinks to high heaven if you ask me. I have been against this from the start on the grounds that key infrastructure should not be foreign-owned. As I state every time I write about this, I am not xenophobic–I have many friends in other countries. It’s nothing against Spain or the Spanish people. My objection has everything to do with the security of our homeland.

Perhaps wiser people than I, who read this blog, can answer a question for me. I’ve noticed in following this story that there are rumors another company is trying to buy out Iberdrola itself! Of course Iberdrola denies the rumors out-of-hand. But ‘what if’? What if Iberdrola buys NYSEG and say, a French company buys Iberdrola? And then, because France freely engages in commerce with Iran, an Iranian company buys the French company and becomes the new owner of NYSEG? Or instead of France, a company from North Korea buys Iberdrola? Or a company from a country with hostile relations toward the U.S.? What happens then? Can we prevent and control who the ultimate owner is once ownership of NYSEG transfers off-shore? Perhaps approval of the sale of an American utility is always subject to approval by our country–I’m not sure but would like to know.

Equally disturbing to me is lack of control at the local level. When Iberdrola sends down the word to “reduce the workforce” (i.e., fire people) to boost the bottom line, or to “invest” all sorts of money in “green technologies” (socialist pap that increases our gas and electric rates), local managers will have little control. Yes, the PSC must approve rate increases and the like. But those who own this monopoly, and it IS a monopoly, will be able to do with it what they want and there is no way to ultimately control them. The owners, instead of being here in the U.S. of A, are a continent away.

Yeah, maybe I’m a bit paranoid on this topic. But something instinctively tells me this is not a good deal for New Yorkers, and not a good deal for America. What do you think? Leave a comment and make me feel better about NYSEG being sold to a foreign country.