Wall Street’s latest obsession: US electric utilities. It’s a bid to cash in on rising electricity demand driven by AI data centers, EVs, factories, and heat pumps. (NYT)
Investment firms including Blackstone and BlackRock have proposed acquiring major utilities around the country, including Minnesota Power and TXNM Energy.
The but: Watchdogs are wary that ownership by profit-driven PE firms could lead to higher rates, increased debt, and reduced reliability. Just yesterday, we told you about the judge who urged the Minnesota PUC to reject the $6.2B acquisition of Duluth-based utility company Allete by private equity over similar concerns.