Looming Private Equity Takeover Could Further Jack Up AES Ohio Rates

COLUMBUS, OH — Last week Ohioans passionately opposed AES Ohio’s proposed rate hike at a Public Utilities Commission of Ohio (PUCO) hearing in Dayton.

Meanwhile, the private equity firm BlackRock is orchestrating a takeover of AES Ohio, formerly known as Dayton Power & Light. A new report from the Innovation Ohio Education Fund outlines how the deal is likely to degrade customer service, increase bills, and make the company even less accountable to the public.

Private equity firms exist to make as much profit as possible – usually by slashing costs and jacking up prices. They’re generally backed by large wealthy investors. AES, on the other hand, is a publicly traded company that is accountable to stockholders. Because the utility holds a regional monopoly on an essential service, the government is supposed to protect consumers against massive, unnecessary rate hikes.

Yet, after BlackRock acquired a 20% stake in Northern Indiana Public Service Company, average utility bills increased by 25% over 18 months. BlackRock also happens to be one of the world’s largest investors in data centers, which drove up Ohioans’ eclectic bills by 17% compared to last year. Acquiring a large stake in AES Ohio could allow the firm to have a direct say over how much the utility charges its data center customers.

Even without the takeover, AES Ohio has a track record of gouging the 527,000 households and businesses it serves. Last year, PUCO approved a 9% rate increase and the Ohio Supreme Court ruled that it overcharged customers from 2019.

“Private equity and public utilities really shouldn’t mix,” said Innovation Ohio Education Fund President Michael McGovern. “If officials allow this deal to go through, customers will inevitably be stuck with worse service, higher bills and less accountability. We need our state and federal officials to stand up for us and stop this deal - or at the very least - require strong consumer protections.”