H.R. 5487: Keep the Lights Local Act

This bill, known as the Keep the Lights Local Act, aims to prevent foreign corporations and governments from owning public utilities in the United States. It seeks to amend existing laws regarding public utility holding companies by explicitly stating that no foreign entity can hold such positions. This means that any public utility company currently owned, in whole or in part, by foreign interests would have to divest those holdings to comply with the new regulation. The bill specifies that this prohibition will take effect 180 days after the bill is enacted. The purpose of the legislation is to keep the management and control of public utilities within the United States, thereby promoting local ownership and potentially enhancing national security regarding utility infrastructure.

Key Provisions

• Prohibition on Foreign Ownership: No foreign corporation or government can be classified as a public utility holding company.
• Compliance Deadline: The prohibition will take effect 180 days after the bill becomes law, allowing time for current foreign holdings to be addressed.

Background

The bill responds to growing concerns about foreign influence in critical infrastructure sectors, notably energy and utilities. By restricting ownership to domestic entities, the legislation aims to safeguard essential services and improve regulatory oversight.

Implications

If enacted, this legislation could lead to significant changes in the utility market, including divestitures by foreign owners and a potential increase in the number of locally-owned utility companies. These changes may also impact investment strategies and partnerships within the energy sector.

Relevant Companies

• DUK - Duke Energy: A major utility provider that may have international investments needing adjustment to comply.
• NEE - NextEra Energy: Potentially impacted if any foreign ownership stakes need to be divested.