The regulators approved the contested takeover of $ 6.2 billion in the power of Minnesota by the investment group

Minneapolis – Minneapolis (AP) – Minnesota regulators voted unanimously on Friday to approve the takeover by an investment group of an electricity company on the objections of the State Attorney General, major industrial electricity buyers and consumer defenders.

By voting for the takeover of Minnesota, based in Duluth, the five members of the Minnesota Public Services Commission said they thought that the conditions imposed on the agreement would protect public interest and protect customers from rate increases. The opponents warned that the investment capital group was only interested in pressing the greater benefits of regular taxpayers.

The approval came while electricity bills increase rapidly in the United States, and growing evidence suggest that the invoices of certain residential customers increase to subsidize the rapid construction of power plants and electric lines to meet the gargantuan energy needs of Big Tech data centers and the boom of artificial intelligence.

Reading the challenges is the potential that Google could build a data center in the Minnesota Power territory in the northern part of the State, a lucrative perspective for the owner of the public service.

Opponents also expressed the fear that the sale not encouraging more offers across the United States

Under the planned buyout, a subsidiary of BlackRock and the Investment Council of the Canada Retirement Plan will take over the listed company Allete, parent of Minnesota Power, which provides electricity to 150,000 customers and has a variety of electricity sources, including coal, gas, wind and solar energy.

The buyout price is $ 6.2 billion, including $ 67 per share for shareholders to a bonus of 19% and assuming $ 2.3 billion in debt. In her petition, Allete told regulators that the operations, strategy and values ​​of Minnesota Power would not change Blackrock and that the cost of the agreement would not affect electrical rates.

The construction unions and the administration of the Democratic Governor Tim Walz, who appointed or renamed the five commissioners of the public services, stored on the side of Allete and Blackrock.

The State Department of Commerce, Minnesota Power and investors negotiated a set of changes this summer which included additional financial and regulatory guarantees. Department’s lawyer Richard Dornfeld told the Commission that changes would protect the public interest.

The president of the commission, Katie Sieben, accepted.

“Due to the collective work of partners, stakeholders, work, environmental groups and others, we have made the Global Package Best for Minnesota Power customers,” said Sieben.

The Office of the Attorney General and the industrial interests of the Attorney General and industrial interests which buy two thirds of the electricity of Minnesota Power, in particular the owners of iron mines and the other owners of iron mines, oil pipelines and paper and paper factories.

Allete argued that Blackrock will have more easy to collect money that Minnesota Power needs to comply with a law of the State forcing public services to obtain 100% of their electricity from carbon -free sources by 2040.

Previously, an administrative law judge has recommended that the Commission reject the agreement, claiming that the evidence has revealed that the buyout group “the intention to do what the investment capital should do – pursue a profit exceeding public procurement through the company’s control”.

Commissioner Audrey Partridge said that she had started with “a high degree of skepticism and I would even say that cynicism” and “supposed the absolute worst of these investors”. But she said that the additional guarantees, and the more than $ 100 million that investors will provide the relief of taxpayers and investments in clean energy, will protect the public interest.

Opponents said they were dismayed by approval.

“The ownership of minnesota electricity capitalism will probably mean higher invoices, less responsibility and more risks for minnesotans,” said Alissa Jean Schafer, climate and energy project for the project of investment capital and energy. The non-profit national organization claims that it seeks to bring transparency and responsibility to the investment capital industry.

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Levy reported to Harrisburg, Pennsylvania.