Exclusive-US lawmakers including Sen. Warren push energy regulators to reject acquisition of power company AES

U.S. lawmakers, including Senator Elizabeth Warren, have urged federal energy regulators to reject a proposed $33.4 billion acquisition of power company AES by a BlackRock subsidiary and its investor partners, according to a recent letter obtained by Reuters. The lawmakers argue that the deal could lead to increased electricity costs for consumers and potentially benefit data centers at the expense of utility customers.

The surge in electricity demand is largely attributed to the growing number of energy-intensive data centers, which has sparked a surge of power mergers and acquisitions, some of which involve taking public electric utilities private. In March, BlackRock’s Global Infrastructure Partners, along with EQT and other investors, secured a deal to acquire AES for around $33.4 billion, including debt, making it one of the largest power sector transactions in recent years.

The letter, dated September 28, was addressed to Federal Energy Regulatory Commission Chairman Laura Swett and highlighted the significant implications of private equity involvement in the public utility market for consumers' energy expenses during a period of record-high utility bills.