Consumer groups fight BlackRock's $33B AES take-private at FERC

What's the deal? Consumer advocacy groups have asked federal regulators to block BlackRock's push for a controlling stake in utility company AESDealroom has a profile for this one. Try Dealroom →, arguing the private equity firm should be broken up. The Citizens Action Coalition of Indiana, Public Citizen, and the Private Equity Stakeholder Project filed the complaint with the Federal Energy Regulatory Commission in July 2026.

Why the concern? The groups argue that if the purchase proceeds, BlackRock affiliates would control over half of the utility — including its management of the California Public Employees' Retirement System stake in AES. That would exceed the 20% ceiling on voting shares that limits FERC's blanket authorizations for holding companies.

The backdrop: AES agreed in early 2026 to be taken private in a $33-billion deal, with BlackRock joined by Swedish private equity firm EQTDealroom has a profile for this one. Try Dealroom → and Qatar's sovereign wealth fund. AES Indiana serves more than 500,000 retail customers in Indianapolis and surrounding areas.

The legal test: The Federal Power Act lets FERC approve utility acquisitions only if "consistent with the public interest." The groups argue that a majority stake fails that test.

What they're saying: Firms like BlackRock "are the last people we should want to be running our public utilities," said Kerwin Olson, executive director of Citizens Action Coalition. "The aim of private equity firms is to extract as much profit from the assets that they own," he told the Indiana Capital Chronicle.

Why it matters: The deal is one of many private equity attempts to buy public utilities amid surging data centre demand for electricity. It is expected to close in late 2026 or early 2027.

The signal: As Wall Street chases the returns of a power-hungry AI economy, the fight over AES tests how far regulators will let financial firms into the infrastructure that powers American homes. "It is more important than ever for regulators to carefully examine whether the financial incentives driving Wall Street investments are compatible with the long-term public interest," said Nichole Heil of the Private Equity Stakeholder Project.

Read more: Yahoo Finance · Indiana Capital Chronicle

Image credit: Peter Kaminski