17 attorney generals have filed a motion with the Federal Energy Regulatory Commission (FERC) to shield energy companies from BlackRock's Environmental, Social and Governance (ESG) policies. The motion is requesting the revocation of the investment fund's general authorization for the next three years to acquire voting interests in these companies because it is "an environmental activist" that promotes woke policies that put "leftist fever dreams" before the interests of the nation.
Elitists are trying to raise utility bills for regular Americans, including elderly Hoosiers on fixed incomes, by imposing ESG regulations. My office is leading the fight to protect consumers. Read about my office's BlackRock actions here: https://t.co/3pw3KFpR1A
— AG Todd Rokita (@AGToddRokita) May 10, 2023
BlackRock is asked to revoke prior authorization
Indiana Attorney General Todd Rokita, who is leading the initiative, noted that strategies such as those promoted by BlackRock "attempt to raise utility bills for regular Americans." The Federal Power Act provides that any utility holding company seeking to acquire more than $10 million in voting securities of another utility must have the express approval of FERC.
Last year, however, FERC granted BlackRock an authorization that will allow the fund for the next three years to purchase, acquire or hold $10 million in voting securities of any "public utility company," "electric utility company," "transmission utility company" or "holding company in a holding company system that includes an electric utility company or a transmission utility company."
Forcing "abandonment of investment in traditional energy".
Something the attorney generals who signed the motion consider inadmissible due to BlackRock's woke position on energy and promoting renewables while pushing to defund fossil fuels.
Maybe BlackRock was a passive investor 10 years ago, but today it's an environmental activist. Indeed, BlackRock's own public commitments belie its representations to the commission. Pursuant to its membership in several horizontal associations, BlackRock aims to pressure or force utility companies to phase out traditional energy investment.
BlackRock puts "leftist fever dreams" first
The motion accuses BlackRock of trying to impose a radical left-wing agenda by avoiding the ballot box, which, according to the signatories, would not support the fund's initiatives, which are also detrimental to its interests.
This is yet another example of radical leftists trying to circumvent the will of the American people in order to implement their draconian mandates. The restrictions these elitists are trying to impose on energy companies and utilities would never win approval at the ballot box. The public interest is served when investment companies build their business models on maximizing financial returns for clients. Conversely, the public interest is hijacked when these companies subjugate clients’ financial interests to leftist fever dreams.
In addition to Indiana, the motion was signed by Attorney Generals from Alabama, Alaska, Arkansas, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, Ohio, South Carolina, South Dakota, South Dakota, Texas, Utah and West Virginia.
BlackRock says fears are unfounded
Speaking to Pensions&Investment, Speaking to Pensions&Investment, a BlackRock spokeswoman played down the fears raised by the attorney generals and said they are unfounded: "As a fiduciary, BlackRock's core focus is seeking the best financial outcomes for our clients, consistent with their investment objectives. We continue to offer them choice in financial products, and we are providing the ability for more and more clients to vote their proxies."
