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Public Citizen Protest of Petition By Utilities To Grant Exemptions To Asset Managers That Control 20% Of Voting Shares

By Tyson Slocum

In a filing today with the Federal Energy Regulatory Commission, Public Citizen protests an October 30 Expedited Petition for Declaratory Order submitted by a group of utilities. The Petition asks FERC to allow certain financial institutions to control as much as 20% of a utility’s voting shares without being deemed affiliates of the utility. The utilities seek the exemption for applications under Section 203 of the Federal Power Act (mergers and acquisitions) and for Section 205 applications (market-based rate authority).

Public Citizen asks FERC to dismiss the petition. Allowing sophisticated asset management firms such as BlackRock, Vanguard and State Street to evade affiliation even when controlling 20% of public utilities will harm the public interest and result in unjust and unreasonable rates.

Read our three-page protest here: