U.S. Politicians Challenge EQT and BlackRock's Electricity Acquisition Citing Price Concerns

U.S. lawmakers have expressed strong concerns regarding the acquisition deal involving Swedish firm EQT, BlackRock, and AES, warning it could lead to increased electricity prices amid surging demand driven by data centers. The bipartisan letter, signed by representatives including André Carson (D) and Victoria Spartz (R), criticizes the deal for potentially failing the Federal Energy Regulatory Commission's public interest requirements. They highlight that GIP, a partner in the deal, aims for returns of 15–20%, roughly double the historical median for regulated utilities, stirring fears of heightened electricity costs.

Concerns also focus on BlackRock's ownership across both electricity utilities and energy-heavy data centers, raising the risk of cross-subsidization that might prioritize data center investments, potentially burdening other electricity consumers. Lawmakers caution that if data centers face financial failure, remaining consumers could shoulder unnecessary upgrade costs.

AES has firmly rejected these claims, stating the acquisition will not impact regulated electricity tariffs in AES Indiana and AES Ohio. They maintain the deal will enhance access to capital for essential grid investments and emphasize continued local regulatory oversight of utilities. AES shareholders and Ohio regulators have approved the transaction, with the overall acquisition expected to close by late 2026 or early 2027, pending remaining approvals including from FERC.

This dispute unfolds as U.S. electricity demand hits record levels due in large part to the expansion of energy-intensive data centers, fueling a wave of industry transactions. BlackRock declined to comment, while EQT has yet to respond to inquiries.