Warren seeks to block AES takeover to protect customers

Elizabeth Warren and four U.S. lawmakers are asking FERC to reject the proposed AES takeover. Published on September 29, 2026, by the Senate Banking Committee, their request aims to protect households and businesses served by AES Ohio and AES Indiana from the risk of paying for equipment intended for data centers linked to the buyers.

The letter dated September 28 is addressed to Laura V. Swett, chair of FERC, the federal energy regulator. Warren signed it alongside André Carson, Victoria Spartz, Rashida Tlaib and Ayanna Pressley. Carson, a Democrat, and Spartz, a Republican, both represent Indiana. This political intervention calls for regulatory rejection without itself blocking the deal.

AES seeks capital for its power capacity

Announced on March 2, 2026, after the merger agreement was signed on March 1, the proposed AES takeover is led by Global Infrastructure Partners, a BlackRock subsidiary, and EQT Infrastructure VI. CalPERS and Qatar Investment Authority are also participating in the consortium.

The approximately 33.4 billion dollars in enterprise value includes AES's existing debt. The equity value is estimated at 10.7 billion dollars, with a cash payment of 15 dollars per share if the deal goes through.

AES justifies the takeover by citing the substantial capital needs associated with its growth after 2027. The company explains that new generation capacity, primarily intended for data centers, requires significant investment. These data centers house computing infrastructure. The benefit cited by AES is stronger funding for this growth.

Lawmakers challenge how grid costs would be shared

In their letter, the lawmakers describe a scenario in which grid work would primarily benefit an affiliated data center while being partly funded by other customers. An affiliated company here means another company linked to the same group of investors.

AES Ohio and AES Indiana customers could therefore bear a share of the cost of equipment primarily serving that data center's needs. The lawmakers also raise the possibility of equipment that customers would continue paying for even after it became unnecessary if the data center failed.

GIP already holds interests in data centers. On July 21, 2026, Aligned Data Centers announced the completion of its acquisition by a consortium comprising AIP, MGX and GIP. Aligned has facilities in Ohio. This presence does not prove that any specific site is an AES customer or benefits from a transfer of costs.

AES rules out acquisition costs on customer bills

AES tells Reuters that acquisition costs will not be borne by customers of its regulated subsidiaries in Indiana and Ohio, including the premium and transaction fees. The company expects no impact on rates from the acquisition.

In its presentation, AES states that the purchase price will be funded entirely with equity and that no additional debt will be issued as a result of the deal. This description concerns the financing of the acquisition. It does not guarantee how future grid expenditures will be shared. No increase or decrease in bills attributable to the takeover has been established.

Federal approval is still pending

The Public Utilities Commission of Ohio approved the deal on September 17. This state approval does not replace federal approval from FERC. AES says its regulated subsidiaries, including AES Ohio and AES Indiana, would continue to be overseen by local, state and federal authorities after the deal. Delisting would remove AES from the stock exchange without ending this regulation.

Reuters reported on September 29 that FERC approval was still pending. The federal proceeding is numbered EC26-99-000. AES expects completion in late 2026 or early 2027, subject to the remaining approvals and other closing conditions.

FERC's decision will be the next regulatory milestone. Any safeguards it provides regarding the funding of dedicated equipment and the risk of data centers being abandoned will allow an assessment of the protection afforded to other customers.