AG Reyes and the Arizona Corporation Commission Co-Lead Motion and Protest in BlackRock’s Attempt To Control Utilities

SALT LAKE CITY-Attorney General Sean D. Reyes co-led a coalition of 19 states with the Arizona Corporation Commission in filing a Motion to Intervene and Protest in BlackRock, Inc.'s latest attempt to obtain an unlawful blanket authorization to own utilities from the U.S. Federal Regulatory Commission (FERC).

Over the past decade, BlackRock has been granted blanket authorizations and reauthorizations. In its applications, BlackRock repeatedly assures FERC that reauthorizations are warranted because BlackRock is merely a passive, non-controlling investor. Yet the evidence of BlackRock's unlawful actions to the contrary couldn't be clearer. As a member of several horizontal associations, BlackRock has a history of pressuring utility companies to phase out traditional energy investments, which flies in the face of its commitments to FERC.

"BlackRock's latest attempt to bypass federal law escalates the need for action as the reliability of our nation's electrical grid remains in jeopardy," said Attorney General Sean D. Reyes. "I am grateful for the Arizona Corporation Commission and the multi-state coalition for joining our fight to protect consumers from a potential breakdown of critical resources."

A growing coalition of states has sought to hold BlackRock accountable to the law and to protect the interests of their respective constituents for a number of years. In May 2023, the States filed motions to Intervene and for Relief in FERC's three-year reauthorization of BlackRock's blanket authorizations to buy, acquire, or take over $10 million in voting securities of public, electric, utility, transmitting, or holding companies. However, FERC never acted on this protest. Instead, FERC opened a "Notice of Inquiry" on the grievances from the States. The States then filed a comment in March 2024 to reiterate the case against BlackRock. A new request has now been filed by BlackRock for blanket authorization through 2028.

AG Reyes continued, "Unfortunately, while government bureaucrats have slow walked accountability and justice for the States in these important and time-sensitive matters, BlackRock just filed a new request for blanket authorization to protect its unlawful actions before the change in presidential administrations this upcoming January. Worse, in a naked attempt to game the system, Blackrock sought to sidestep the long record of opposition by quietly filing its request in a new docket, leading to the need for a new protest."

In the November 12, 2024, filing, the coalition argues that FERC should not grant BlackRock's request for reauthorization unless it requires that BlackRock (and all affiliates and subsidiaries) limit their collective ownership to 20% or less of the shares of each FPA-covered utility, that BlackRock functions only as passive investors, that BlackRock solely holds the shares subject to its fiduciary duties to its investors, and that reports are filed with the Commission to document and explain whenever asset managers voted contrary to the recommendation of utility management on a shareholder proposal or board of director nomination.

Joining Utah and the Arizona Corporation Commission on this filing are the States of Arkansas, Florida, Idaho, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, South Carolina, South Dakota, Tennessee, Texas, Virginia, and Wyoming.

Read the Motion and the Protest here.