PUCO approves BlackRock AES takeover despite rate and profit concerns

Columbus, Ohio — The Public Utilities Commission of Ohio (PUCO) has approved the proposed acquisition of AES Corporation by a consortium led by BlackRock and Swedish private equity firm EQT, moving the takeover of AES Ohio one step closer to completion even as questions remain about what private equity ownership could mean for ratepayers.

AES Ohio is separately seeking a $143 million rate increase, while the investors seeking to acquire its parent company have substantially higher return expectations than regulated utilities have historically produced. BlackRock (then GIP) and AES executives began discussing the acquisition more than a year before AES proposed the rate increase it is currently seeking.

Publicly traded utilities have generated roughly 9% annual returns over the past decade. By comparison, BlackRock is targeting annual gross returns of up to 20% in the infrastructure fund backing its utility acquisitions. That difference raises questions for ratepayers. If investors expect returns well above what utilities have historically produced, where will those additional returns come from?

“PUCO may have approved the acquisition, but the fundamental question for Ohio ratepayers hasn’t changed,” said Nichole Heil, senior research and campaign coordinator at the Private Equity Stakeholder Project (PESP). “BlackRock is promising investors returns far above what regulated utilities have historically produced at the same time AES Ohio is asking customers to pay more. Regulators should be asking where those returns will come from and who will ultimately pay for them.”

Those concerns are not hypothetical. During Minnesota’s review of BlackRock’s acquisition of Minnesota Power’s parent company, an administrative law judge recommended rejecting the deal saying, “The Acquisition creates an unacceptable risk of rate increase and rate shock in a critical and economically vulnerable area of Minnesota.”

The AES transaction is not yet final. The Federal Energy Regulatory Commission (FERC) still must approve the acquisition, and questions about BlackRock’s expanding power-sector holdings have surfaced in the federal review. The Independent Market Monitor for PJM, the electrical grid that includes AES Ohio, has raised concerns about whether BlackRock’s utility investments are fully reflected in the applicants’ market-power analysis. PESP has also joined a FERC protest questioning whether BlackRock’s existing blanket authorization adequately reflects its shift from passive investment toward active ownership of major utilities.

The federal review comes amid heightened scrutiny of foreign connections to U.S. electricity infrastructure. In August, President Donald Trump declared a national emergency over risks associated with certain foreign-produced bulk-power equipment, describing vulnerabilities in the electric system as a threat to national security, the economy, and critical infrastructure. The order does not address foreign investment in utilities, but the AES consortium includes the Qatar Investment Authority, Qatar’s sovereign wealth fund, and Swedish private equity firm EQT. Their involvement raises separate questions about the transparency and scrutiny applied to foreign capital participating in acquisitions of major U.S. power companies.

EQT’s involvement also creates another connection to Ohio’s growing data center industry. EQT-backed EdgeConneX is developing data center infrastructure in the state alongside new gas-fired generation, including a proposed 800-megawatt gas plant. Through the AES acquisition, EQT would have interests spanning data centers, power generation built to serve growing electricity demand, and an Ohio utility.

BlackRock received a C in the 2026 Private Equity Climate Risks Scorecard, which evaluates the climate, geopolitical, and financial risks associated with private equity firms’ energy investments.