Minnesota PUC Weighs Decision on BlackRock’s $6.2B Acquisition of Minnesota Power

ST. PAUL, Minn. - Today, the Minnesota Public Utilities Commission (PUC) held its final hearing on the proposed private equity acquisition of Minnesota Power. Under the proposal, ALLETE, the parent company of Minnesota Power, would no longer be a publicly traded company and would be sold to two private equity investors, the Canadian Pension Plan Investment Board (CPP) and Global Infrastructure Partners (GIP), a subsidiary of BlackRock, the world's largest asset manager.

The PUC is set to make a decision on the proposed acquisition on Friday, October 3.

"This private equity acquisition threatens to control and put at risk a crucial part of Minnesotans' everyday lives. BlackRock and GIP are not interested in funding the necessary transition to clean energy, they are interested in recouping returns from ratepayers like me. We shouldn't have to pay more for an essential service that keeps the lights on while private equity executives rake in profits at our expense. Minnesotans have been loud and clear: the PUC must protect real people from profit-hungry private equity and reject this deal," said Jenna Yeakle, Central Region Campaign Manager, Beyond Coal at Sierra Club.

"Minnesota's energy future should be built on the needs of communities and the long-term stability of the grid-not the short-term profit expectations of BlackRock's investors. Handing a monopoly utility over to a Wall Street private equity fund means risking higher bills and a slower clean energy transition. BlackRock's own documents show they are seeking double-digit returns while captive utility customers are stuck footing the bill," said Alissa Jean Schafer, Climate and Energy Director, Private Equity Stakeholder Project.

"These private equity entities are the largest and most powerful financial interests in the world-we hope that our PUC Commissioners understand the risks that their control poses for an essential service like electricity and Minnesota's energy future. An energy transition that reaps excessive profits for Wall Street titans at the expense of people already struggling to pay their energy bills is its own kind of dirty, and one none of us can afford," said Hudson Kingston, Legal Director, CURE.

In July, an Administrative Law Judge (ALJ) found that the proposed acquisition and private equity buyout of ALLETE is not in the public interest, and that the acquisition's risks and harms outweigh the alleged benefits, resulting in net harm for ratepayers. In her findings, Administrative Law Judge Megan J. McKenzie wrote, "The nonpublic evidence reveals [GIP and CPP's] intent to do what private equity is expected to do - pursue profit in excess of public markets through company control."

Opponents to the acquisition include organizations who were parties in the contested case proceeding, including Sierra Club, CURE, and the Minnesota Citizens Utility Board, as well as the Minnesota Attorney General and Minnesota Power's largest industrial customers. In addition, an alliance of fifteen environmental, climate justice, and community organizations voiced their opposition in a joint letter.The public also spoke out overwhelmingly against the deal, with nearly 500 commenters asking the PUC to reject the private equity takeover.

Advocates warn that if approved, the takeover would saddle Minnesota Power with the private equity business model-notorious for aggressive cost-cutting, higher rates, and short-term profiteering. BlackRock, which already has major investments in fossil fuel infrastructure such as the Rio Grande LNG terminal in Texas (bought with the same fund GIP is using to buy ALLETE), has shown it prioritizes financial returns over community needs.

The acquisition also threatens to derail Minnesota's clean energy transition. While the state has a plan to achieve 100% carbon-free electricity by 2040, opponents warn that private equity ownership could slow progress on renewable projects, while driving up rates for families and businesses. In addition, the deal could leave Minnesota Power customers facing increased bills, compromised reliability, and reduced transparency-all in service of Wall Street profits.

###

About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit https://www.sierraclub.org.