MN Regulators Approve BlackRock Takeover of Minnesota Power Amid Strong Opposition

The Minnesota Public Utilities Commission (PUC) has today controversially approved BlackRock’s acquisition of ALLETE, the parent company of Minnesota Power, a move met with strong criticism from consumer advocates and environmental groups. The five-person regulatory body, appointed by Governor Walz, pushed through the deal despite an Administrative Law Judge’s recommendation against it, along with widespread opposition from the Attorney General’s office and thousands of Minnesotans.

Critics, including the Private Equity Stakeholder Project (PESP), argue that handing Minnesota Power to private equity firm BlackRock will likely result in increased utility bills, reduced accountability, and heightened risks for consumers. Alissa Jean Schafer, PESP’s Climate and Energy Director, stated that BlackRock’s “short-term profit model is simply incompatible with the long-term needs of a public utility.”

The Administrative Law Judge’s report had previously warned of “significant rate increases” and the potential for “rate shock” in economically vulnerable areas. Concerns also include a lack of transparency often associated with private equity firms and uncertainty regarding BlackRock’s commitment to Minnesota’s 2040 carbon-free mandate.

With the approval granted, the burden now falls on the PUC to ensure BlackRock fulfills the promises made during the acquisition process. PESP has pledged to monitor the situation closely, advocating that BlackRock prioritizes public interest over profits. This deal is also seen in the broader context of Wall Street’s increasing involvement in essential public services across the country.

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