BlackRock’s bid for AES signals an alarming utility takeover spree

From Minnesota Power/ALLETE to AES, BlackRock is racing to dominate America’s power grid through private equity buyouts.

As the Minnesota Public Utilities Commission (PUC) weighs BlackRock’s controversial bid to acquire Minnesota Power’s parent company ALLETE, news broke that BlackRock’s Global Infrastructure Partners (GIP), is now in advanced talks to buy U.S. power giant AES in a massive deal that could top $38 billion.

“This is a clear warning sign: BlackRock is moving aggressively to control America’s power grid through private equity acquisitions, potentially to serve the firm’s own data center developments,” said Alissa Jean Schafer, Climate and Energy Director at Private Equity Stakeholder Project. “Minnesota Power may be just the beginning of an avalanche of Wall Street buyouts of utilities, power plants, and all the critical infrastructure that goes with it.”

Regulators at both the state and federal level have the authority to stop these takeovers if they are not in the public interest. Advocates warn that without strong oversight, BlackRock’s growing dominance could mean higher bills, less transparency, and utilities run to maximize investor returns instead of serving communities.

As former FERC Chair Christie stated: “One threat is that asset managers, like BlackRock, will use their ownership of competing assets to exert market power in wholesale energy, capacity, and ancillary services markets. This is consistent with the concerns expressed by Public Citizen and the Private Equity Stakeholder Project in this proceeding, and I share those concerns.”

“This is exactly why we’ve raised alarms in Minnesota,” Schafer continued. “When Wall Street firms like BlackRock control essential services, the risks to ratepayers, workers, and the clean energy transition multiply. Regulators should draw a hard line before it’s too late.”