Lawmakers press regulators to reject AES acquisition

This is a modal window. Beginning of dialog window. Escape will cancel and close the window. End of dialog window. A bipartisan group of lawmakers are urging federal regulators to block the multi-billion-dollar sale of power company AES, warning the deal could raise electricity costs for utility customers to benefit data centers. In a Sept. 28 letter to Federal Energy Regulatory Commission (FERC) Chair Laura Swett, lawmakers argued the acquisition would not be in the public interest. The group consisted of four Congress members, including Sen. Elizabeth Warren (D-Mass) and Reps. Andre Carson (D-Ind.), Victoria Spartz (R-Ind.), Rashida Tlaib (D-Mich.) and Ayanna Pressley (D-Mass.). BlackRock’s Global Infrastructure Partners, private equity firm EQT and other investors agreed in March to acquire AES in a deal valued at more than $33 billion, making it one of the largest power sector transactions in recent years. “The private equity industry’s involvement in the public utility market has significant implications for consumers’ energy costs at a time when Americans are facing record high utility bills,” the letter reads, which was first reported by Reuters. The lawmakers said the deal could put pressure on AES to generate higher returns, potentially leading to higher electricity rates that would eventually fall on the consumer. They pointed to Global Infrastructure Partners’ target returns of 15 percent to 20 percent, compared with a historical median of 10 percent for regulated utilities. The group also raised concerns surrounding BlackRock’s investments in power infrastructure and data centers, which have popped up across the country to power emerging AI technology. Both industries are driving much of the growth in U. S. electricity demand. “Even worse, if a data center fails, consumers may continue paying for the unnecessary upgrades via increased utility bills,” the letter reads. AES pushed back on those concerns, saying in a statement to Reuters that the acquisition is not expected to affect rates at its regulated utilities. The publicly held company told Reuters that customers at its electrical utilities in Indiana and Ohio would not pay costs associated with the acquisition, including the purchase premium or transaction expenses. AES also said the deal would improve its access to capital to invest in grid infrastructure. Under the deal, which AES shareholders approved, AES would become a privately held company. The deal still requires FERC approval, and is expected to close later this year or early next year. Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.