On September 16, 2024, Public Citizen staged a protest against BlackRock’s proposed $6.2 billion acquisition of ALLETE, an energy utility based in Duluth, Minnesota. The deal has raised concerns that it may adversely affect over 165,000 customers in Minnesota and Wisconsin.
BlackRock, one of the largest asset management firms globally, has been increasing its influence over fossil fuel infrastructure. ALLETE, which operates Minnesota Power, plans to sell itself to Global Infrastructure Partners and the Canada Pension Plan Investment Board. In a complex financial maneuver, Global Infrastructure Partners is also in the process of being acquired by BlackRock for $12.5 billion.
With assets exceeding $9.5 trillion, BlackRock is known for its significant control over voting securities. Although the firm claims to engage in passive management, the acquisition would shift its status to active control over energy assets, raising alarms about competition, pricing, and regulation in the sector. Public Citizen’s Tyson Slocum emphasized the risks of this transformation, urging the Federal Energy Regulatory Commission to separate BlackRock’s investment management role from its private equity arm.
Minnesota Attorney General Keith Ellison echoed these concerns, warning of potential conflicts that could arise from allowing these entities, including Global and the Canada Pension Plan, to control ALLETE. He highlighted the risks of cross-subsidization and self-dealing that could harm consumers.
Public Citizen has also noted that nearly 90 years of regulatory standards require utility ownership to prioritize public interest over corporate profit. The Federal Power Act mandates regulatory scrutiny for any changes in control of public utilities.
In 2022, Public Citizen called on the Federal Trade Commission to investigate whether Blackstone’s control over multiple utility boards breaches antitrust laws. They argue that allowing such dominance poses a threat to consumer protection.
As the regulatory body, FERC has set a mid-September deadline for public input on the BlackRock-ALLETE deal and is expected to reach a decision by early 2025. Public Citizen has vowed to continue fighting against such corporate acquisitions that jeopardize consumer interests in local energy utilities.