US lawmakers urge FERC to block $33 billion AES sale to BlackRock unit

A group of US lawmakers, including Senator Elizabeth Warren, has asked federal energy regulators to reject the proposed sale of power company AES to a BlackRock subsidiary and its investment partners, arguing the deal could push up electricity bills and benefit data centres at the expense of ordinary utility customers.

The request was made in a letter dated September 28 and addressed to Laura Swett, chair of the Federal Energy Regulatory Commission (FERC).

BlackRock's Global Infrastructure Partners, along with EQT and other investors, agreed in March to acquire AES in a transaction valued at about $33.4 billion including debt. The deal ranks among the largest in the power sector in recent years.

The lawmakers pointed to the growing role of private equity in the public utility market, saying it carries significant consequences for consumers' energy costs at a time when Americans are already facing record-high utility bills.

The intervention comes as US electricity demand climbs to record levels, driven largely by the rapid expansion of energy-intensive data centres. That surge has triggered a wave of mergers and acquisitions in the power industry, with some proposals seeking to take publicly listed electric utilities private.

The letter urges FERC to block the AES acquisition, according to the document seen by the wire service.