PESP participates in webinar with Minnesota legislators, advocates

After the decision to allow the BlackRock acquisition of Minnesota Power (MP) to commence by the Minnesota Public Utilities Commission (MN PUC), Minnesotans were left to wonder how they might be affected and what the future of their utility might look like. This uncertainty is especially true given the Administrative Law Judge appointed to the case recommended the MN PUC reject the proposal and hundreds of MP ratepayers voiced their opposition. 

The Private Equity Stakeholder Project spoke at a public forum, along with Minnesota Rep. Liish Kozlowski, Minnesota Sen. Jen McEwen, CURE, Sierra Club, and Twin Ports DSA, about how the deal was approved and what it means for MP customers and communities. The forum also discussed community members’ growing concerns about data center expansion in the area and how the now BlackRock-owned Minnesota Power may play a role in potential new data centers.

Nichole Heil, Senior Research and Campaign Coordinator, provided an overview of the deal, a refresher on how the private equity business model works, and what it means now that BlackRock is the largest owner of MP.

Among the topics discussed by speakers and ratepayers alike are the  risks of this deal, including but not limited to:

• 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.

Although the MN PUC has allowed BlackRock to purchase Minnesota Power, there are still ways for communities to shape their utility and get involved in its future. For example, CURE has submitted a Petition for Reconsideration asking the MN PUC to reconsider BlackRock’s plans to develop new data centers in Minnesota Power’s service territory. The utility will also have to submit rate cases and infrastructure plans to the MN PUC in the future. Ratepayers who want to get involved in future Minnesota Power engagement opportunities can learn more at: https://curemn.org/get-involved/take-action/