Phoenix, Ariz. – The Arizona Corporation Commission voted 4-1, with Commissioner Tovar dissenting, to direct ACC Legal Staff to seek intervention in two interrelated Federal Energy Regulatory Commission (FERC) dockets during a Staff Open Meeting on November 12, 2024.  The Arizona Corporation Commission, along with Utah Attorney General, Sean D. Reyes, are co-leading a coalition of 19 states in filing a Motion to Intervene and Protest in BlackRock, Inc.’s latest attempt to obtain blanket authorizations to own significant share positions of public utilities.  BlackRock, Inc. is one of the world’s largest investment management companies. The ACC and the state coalition assert this action is necessary to protect respective consumers from large investor control and influence of “asset cartels” over public utilities.  Large investors have the potential to negatively influence public utilities by forcing the elections of hostile directors and management that put private agendas ahead of the public good, and by compelling public utilities to adopt harmful policies that threaten grid reliability and needlessly increase costs.

As a member of several horizontal associations, BlackRock has a history of pressuring utility companies to phase out traditional energy investments.  Over the last decade, FERC has granted BlackRock several blanket authorizations and reauthorizations.  The ACC is now in the position to provide testimony, evidence and opinion to the FERC on the potential harm the blanket authorizations can cause. 

"We need utilities to make decisions based on what makes the most sense for ratepayers and the integrity of our grid, not the policy goals of activist-minded asset managers," said Commissioner Kevin Thompson.  "This Commission must take a more proactive role in federal matters that impact Arizona ratepayers and our grid when FERC and other federal agencies exert influence in matters that should reside with state regulators and our utilities."

“What we have here are large companies effectively expecting to have a rubber stamp by FERC to invest above and beyond protections that have been put into place for a very good reason. This blanket extension effectively would allow them to continue doing whatever they are doing without so much as a review,” said ACC Commissioner Nick Myers.

“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.”

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 the ACC and Utah Attorney General in this filing, are attorneys general from Missouri, Arkansas, Montana, Florida, Idaho, Nebraska, North Dakota, Indiana, South Dakota, South Carolina, Kentucky, Iowa, Tennessee, Louisiana, Texas, Mississippi, Virginia, and Wyoming.

Read the Motion and the Protest here.