FERC Chair Christie highlights concerns over BlackRock’s blanket authorization extension, while still approving order

On April 17, 2025, the Federal Energy Commission approved the extension of BlackRock’s blanket authorization to acquire voting securities of any “public utility,” “electric utility company,” “transmitting utility,” or “holding company in a holding company system that includes an electric utility company or transmitting utility.” PESP had previously filed two joint protests in this proceeding with Public Citizen. 

Chair Christie cited PESP and Public Citizen concerns in his concurrence, stating: 

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.  

Christie’s concurrence also stated: 

I have expressed my concern in the past about the specter of a huge asset manager, such as BlackRock, using its substantial holdings to exert control over the operational decisions of a public utility. Owning 20%, or even less than that, of a utility’s stock could well result in the exercise of substantial influence over a utility.  So it is imperative that we carefully review requests under section 203 of the Federal Power Act to extend asset managers’ blanket authorizations.  

The blanket authorization extension is happening at a critical time for BlackRock and its subsidiary Global Infrastructure Partners (GIP). The two private equity firms merged in 2024, as approved by FERC, and are currently in the process of attempting to acquire ALLETE, a utility parent company. FERC’s approval of BlackRock’s $12.5 billion acquisition of GIP allowed BlackRock’s largest acquisition in 15 years. As part of the deal, BlackRock paid $3 billion in cash and issued approximately 12 million of its shares. GIP is the world’s largest independent infrastructure manager with over $100 billion in AUM, known for investing in energy, transportation, digital infrastructure, and water management sectors. 

In May 2024, GIP announced its intention to purchase ALLETE. ALLETE is the parent company of five businesses, including Minnesota Power, a utility company serving 150,000 customers, Superior Water, Light & Power, a Wisconsin utility selling electricity, water, and methane gas (also known as “natural gas,”) New Energy Equity, a solar development company, ALLETE Clean Energy, which, according to the ALLETE website, ”specializes in developing, acquiring and managing clean and renewable energy projects,” and BNI Energy, which owns and operates a lignite coal mine in North Dakota. 

In the first joint protest in this proceeding, PESP and Public Citizen stated:

The proposed ALLETE purchase and the completed acquisition of Global Infrastructure Partners fundamentally transforms BlackRock’s business model from that of a non-controlling asset manager to acquiring securities that may result in the transfer of control over a public utility, contradicting the Application’s claim. 

Evidence of BlackRock’s transformation from a passive to active investor includes the fact that GIP’s CEO, Adebayo Ogunlesi, will be promoted to Blackrock’s board of directors and global executive committee, giving him oversight of Blackrock’s overall business (both active and non-controlling investments). This promotion of GIP’s CEO to BlackRock’s board of directors and global executive committee undermines the ALLETE application’s claim that “the strategic and day-to-day operations and activities of [GIP] will continue to be organized and managed separately from BlackRock.” GIP cannot be “managed separately from BlackRock” when GIP’s current CEO will literally serve on BlackRock’s board and global executive committee. 

BlackRock’s failure to segregate its non-controlling investment management operations from its active control of ALLETE and other Commission-jurisdictional assets clearly violates the terms of the Commission’s blanket authorization order.”

In the second joint protest PESP and Public Citizen reiterated these concerns stating:

BlackRock’s acquisition of ALLETE radically changes the facts of the blanket authorization, and risks comprehensive threats to just and reasonable rates in the Commission’s jurisdictional markets due to BlackRock’s extensive horizontal control of utility and end-user voting shares subject to blanket authorization. The application is silent on how BlackRock can navigate the myriad conflicts of interests that arise when it controls ALLETE simultaneously with its control of voting shares in excess of 10% of nearly two dozen utilities, as well as ALLETE’s two largest industrial customers. The Commission’s approval of BlackRock’s acquisition of Global Infrastructure Partners, combined with the included ALLETE transaction, fundamentally shifts BlackRock from a passive investment manager to an active one. 

Investors should note Chair Christie’s conclusion and BlackRock’s “pledges” which will need “continued vigilance” 

In this proceeding, as detailed in the order, BlackRock has pledged not to use its holdings to influence utility management, and to avoid using its holdings to reduce competition among generation assets or to exert market power.  The order also details how BlackRock has pulled out of some investor advocacy organizations, although it apparently retains membership in others, such as Ceres, Inc., which merits continued scrutiny.  Based on the representations by BlackRock and the conditions detailed in the order, I support extending BlackRock’s blanket authorization for an additional three years, but with this reauthorization comes a compelling need for continued vigilance over BlackRock’s actions during this period.

Below is the statement on the FERC approval from Alissa Jean Schafer, Climate Director at PESP

“The Private Equity Stakeholder Project disagrees with FERC’s approval of BlackRock’s blanket authorization extension as well as the ongoing effort to acquire ALLETE. The approval should concern investors and energy customers alike, as it paves the way for even deeper control and influence over critical energy infrastructure, potentially threatening fair competition. BlackRock and GIP are currently attempting to acquire ALLETE, a parent company of multiple energy companies and utilities. This acquisition, now fully approved by FERC, is waiting only on state regulatory approval in Minnesota. 

BlackRock has failed to address how it can effectively separate its non-controlling stock ownership in utilities from its controlling ownership of energy assets through its Global Infrastructure Partners arm, raising concerns around prioritizing its income over fair regulation.”