Arizona Corporation Commission Takes a Stand Against BlackRock’s Influence

By Daniel Stefanski |

The Arizona Corporation Commission (ACC) has taken significant action regarding the Federal Energy Regulatory Commission (FERC), opposing BlackRock, Inc.’s request for reauthorization to control utilities. This decision marks the ACC’s intervention in a matter typically overseen by the state’s attorney general.

Last week, the ACC joined a nationwide coalition of state attorneys general, voicing concerns over BlackRock’s Environmental Social Governance (ESG) filing. The group urged FERC to reject BlackRock’s application unless four specific conditions are met: maintaining collective ownership in utility shares to 20% or less, functioning solely as passive investors, adhering to fiduciary duties towards shareholders, and providing detailed reports on votes that contradict utility management recommendations.

Commissioner Kevin Thompson, a proponent of the ACC’s intervention, emphasized the need for utilities to prioritize ratepayer interests and grid integrity over the influence of ESG-driven investment practices. “We need utilities to make decisions based on what makes the most sense for ratepayers,” he stated, highlighting the commission’s proactive stance in an environment where federal agencies increasingly encroach upon state governance.

The ACC’s filing is supported by several states including Florida, Texas, and South Carolina, showcasing a united front against the perceived overreach of the ESG agenda. This collective effort aligns with recent actions by the Arizona Legislature, which has frequently sought legal avenues to defend state interests in the face of challenges stemming from the current administration.

The rise of the ESG movement has been contentious, particularly among conservative lawmakers who argue it threatens traditional energy investments. Historically, Arizona’s Republican leadership has been active in opposing such initiatives, with former Attorney General Mark Brnovich spearheading early skirmishes. Additionally, State Treasurer Kimberly Yee has collaborated with other financial officials to counter pro-ESG policies.

As Arizona continues to address federal influences affecting its energy sector, the ACC’s continued involvement underscores the necessity for state regulators to assert their authority in matters they deem crucial for their constituents.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.