Why Indiana has no say in rumored BlackRock, AES deal
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If a rumored deal between private equity company BlackRock and utility provider AES goes through, there will be nothing the state of Indiana can do about it.
Why it matters: Consumer advocates say the deal could lead to higher energy costs for AES's Indiana customers.
How it works: Current state law doesn't require approval from state regulators before sales like the one being contemplated by BlackRock.
- The Indiana Utility Regulatory Commission, which oversees public utilities in Indiana, doesn't have jurisdiction over utility company mergers or acquisitions.
The intrigue: Lawmakers could pass legislation to change that, but there seems to be little appetite to pursue that avenue.
- Chairs of both the House and Senate utility committees declined Axios' interview requests for this story.
What they're saying: "Indiana is just a cash cow for these energy holding companies because the state had no authority to stop it," Kerwin Olson, executive director of Citizens Action Coalition, told Axios. "Now is the time to do something."
- "I haven't talked to anybody who thinks … the world's largest hedge fund owning and operating the [electric] utility that serves the city of Indianapolis is a good idea."
Reality check: A law change giving IURC veto power on the BlackRock deal wouldn't necessarily block the sale.
- Minnesota already has a similar law and its regulatory equivalent of the IURC, the Minnesota Public Utilities Commission, approved the sale of the parent company of a Duluth-based utility to a BlackRock subsidiary last month.
The other side: The IURC would still have to approve rate increases, so some say the owner doesn't much matter.
- Gov. Mike Braun, who has said lowering energy costs is a priority, has been focused on filling the three vacancies on the IURC.
- Interviews with 22 candidates were held last week.