A group of U.S. lawmakers, led by Senator Elizabeth Warren, has asked federal energy regulators to reject the proposed $33.4 billion acquisition of power company AES by BlackRock's Global Infrastructure Partners and its investment partners. The lawmakers expressed concerns that the deal could increase electricity costs for consumers.
The pushback from lawmakers highlights potential regulatory hurdles for large private equity deals in the energy sector and raises concerns about the impact of increasing data center energy demand on consumer utility costs.
A group of U.S. lawmakers, including Senator Elizabeth Warren, has urged federal energy regulators to reject a proposed acquisition of power company AES valued at over $33 billion. The lawmakers sent a letter dated September 28 to Federal Energy Regulatory Commission Chairman Laura Swett, expressing concerns that the deal could lead to higher electricity bills for consumers. They specifically noted that the proliferation of energy-intensive data centers is driving up electricity demand and that private equity involvement in public utilities could negatively impact consumer costs. BlackRock's Global Infrastructure Partners, along with EQT and other investors, agreed in March to acquire AES in a transaction valued at approximately $33.4 billion including debt, marking one of the largest power sector deals in recent years.
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