Local media highlight backlash to BlackRock’s utility takeover

Local coverage captures mounting concerns over affordability, accountability, and Wall Street’s role in public utilities.

Growing local and state-level media coverage highlights intensifying opposition to BlackRock’s (via Global Infrastructure Partners) proposed $6.2 billion acquisition of Allete, the parent company of Minnesota Power—a deal that critics say threatens ratepayer protections, clean-energy reliability, and public oversight.

In Duluth on September 3, community members, environmental groups, and elected officials gathered to oppose the sale. Media outlets including WDIO, Fox21, and Northern News Nowcaptured the sentiment, spotlighting a telling warning from State Sen. Jen McEwen:

“It is not always going to be in the financial interests of BlackRock to keep our rates as low as possible, to serve our community the electricity we need. That’s not the business they are in. They are in the business of making profit from as many things as possible.”

The Duluth News Tribune pointed out that consumer advocates and ratepayers—including taconite and paper producers—have voiced alarm, arguing that private control could open the door to unaffordable rate hikes and diluted oversight. 

The broader debate on private equity’s role in utilities was captured in MPR News’ coverage: Can Wall Street accelerate Minnesota’s shift to carbon-free energy—or will ownership by profit-driven investors undermine public interest? While supporters tout new investment, critics point to a history of rate increases and underdelivered promises.

Private equity deals like this are not designed to benefit ratepayers. GIP has advertised to investors that the fund acquiring Minnesota Power seeks annual returns of 15–20% before fees, which is nearly double what publicly traded U.S. utilities have been able to earn over the past decade. The firm also expects to collect an additional 5–7% annual dividend from portfolio companies.

A critical milestone in this process was the July 15 recommendation from Administrative Law Judge Megan J. McKenzie to deny the acquisition—citing the lack of public-interest benefits and evidence that BlackRock/GIP’s private discussions diverge sharply from their public statements. 

The Private Equity Stakeholder Project played a pivotal role in the utility hearings. PESP provided expert testimony, explaining how private equity ownership tends to degrade affordability, transparency, and long-term infrastructure planning. Judge McKenzie referenced PESP’s testimony 42 times in her ruling, underlining its influence in articulating the private-equity playbook. You can read more about PESP’s involvement and the judge’s recommendation here: Minnesota Judge recommends denying BlackRock’s acquisition of ALLETE.

With the PUC scheduled to hold hearings on September 25 and October 3, PESP remains closely engaged—tracking developments, amplifying stakeholder concerns, and keeping public attention focused on the need for accountability and transparency.