MN PUC greenlights BlackRock takeover—Minnesotans lose

MN PUC Decision to Approve BlackRock Takeover of Minnesota Power is a Bad Deal for Minnesotans

By ignoring the ALJ’s recommendation, commissioners handed Minnesota Power to private equity, leaving families vulnerable to higher bills and weaker oversight.

St. Paul, MN — Today, the Minnesota Public Utilities Commission (PUC), a five person regulatory body appointed by Gov. Walz, voted to approve BlackRock’s proposed acquisition of ALLETE, the parent company of Minnesota Power. The decision flies in the face of warnings from the Administrative Law Judge, consumer advocates, environmental organizations, and thousands of Minnesotans who have spoken out against the utility takeover deal.

“By ignoring a lengthy record of opposition and choosing to approve this BlackRock deal, the Minnesota PUC made the wrong choice today,” said Alissa Jean Schafer, Climate and Energy Director at the Private Equity Stakeholder Project (PESP). “Private equity ownership of Minnesota Power will likely mean higher bills, less accountability, and more risk for Minnesotans. BlackRock’s short-term profit model is simply incompatible with the long-term needs of a public utility.”

Administrative Law Judge Megan McKenzie’s report was unequivocal, warning that BlackRock’s plans would likely lead to “significant rate increases that will exceed the long-run rate of inflation” and create “an unacceptable risk of rate increase and rate shock in a critical and economically vulnerable area of Minnesota.”

Across the country, private equity firms like BlackRock’s Global Infrastructure Partners have used aggressive cost-cutting and high debt loads to generate outsized returns, with consumers left paying the price. “What’s at stake is simple: Minnesotans could see their power bills rise while Wall Street investors collect profits,” said Schafer.

While the Commission chose to ignore the ALJ’s recommendation, opposition from the office of the Attorney General, Large Power Interveners, consumer advocates, and local, public opposition, it has now placed the burden squarely on itself to hold BlackRock accountable.

“BlackRock made lofty promises in order to win approval for this deal. It will now be on the PUC to enforce those promises, and we will be watching, alongside the many organizations and Minnesotans who opposed this takeover, to make sure BlackRock does not put profits ahead of the public,” Schafer said.

The risks of this deal have been documented repeatedly:

• Higher bills: The ALJ’s review of BlackRock’s confidential financial information shows a plausible concern that BlackRock will rely on significant rate increases to meet investor return targets.
• Less transparency: Private equity firms often use confidential structures and short investment horizons, leaving regulators and the public with fewer tools for oversight.
• Clean energy uncertainty: Despite claims to the contrary, there is no guarantee that BlackRock’s ownership will advance Minnesota’s 2040 carbon-free mandate.

“By approving this sale, Gov. Walz’s PUC has signaled to Wall Street that even essential public services are on the auction block,” Schafer said. “Approving this deal was the wrong decision, and Minnesotans could be left to pay the price.”

BlackRock’s $38 billion bid for AES, a different energy holding company with multiple utilities and extensive power infrastructure assets, makes clear that ALLETE is not an isolated deal, but part of a sweeping Wall Street power grab that threatens higher bills, weaker oversight, and utilities run for profit instead of people.