US lawmakers, including Sen. Warren, push regulators to block $33B AES buyout: Reuters

A group of US lawmakers including Senator Elizabeth Warren, ​asked federal energy regulators this week to reject a more than $33B sale of power company AES (AES), saying it could drive up electricity ‌bills and benefit data centers at the expense of utility customers, according to a letter seen by Reuters.

BlackRock's (BLK) Global Infrastructure Partners, alongside Swedish private equity EQT and other investors, agreed in March to acquire AES in a deal valued at about $33.4B including debt, 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," said the letter dated Sept. 28, which ​was directed to Federal Energy Regulatory Commission Chairman Laura Swett.

AES in an ​emailed statement said, the acquisition is not expected to impact customer rates in company's regulated utilities, the report said.

"No costs associated with the acquisition — including any premium paid or transaction-related expenses — will be borne by utility ratepayers and for the Company’s electric utilities in Indiana and Ohio," it added.

The sale of AES is pending approvals by FERC, which is tasked ​with determining whether the transaction is in the public's interest. In their letter to the Federal Energy Regulatory Commission Chairman Laura Swett, dated September ​28, the lawmakers argued that the acquisition fails the public interest test, partially because it could increase energy costs for homes and businesses.

The letter was signed by a ‌bipartisan group ⁠of lawmakers, including Indiana representatives André Carson, a Democrat, and Victoria Spartz, a Republican, as well as Democratic Representatives Rashida Tlaib of Michigan and Ayanna Pressley of Massachusetts, the report added.