Because utilities are often monopolies in the regions they serve and because electricity and heating are essential in people’s lives, any investment of more than $10 million in a public utility must be approved by FERC, according to the Federal Power Act (FPA). BlackRock and Vanguard received blanket approval in 2019 to surpass this limit for three years, and BlackRock was just given blanket approval for another three years. Now Vanguard is seeking FERC approval on similar terms, but their request is sparking protests.
In November, 13 state attorneys general petitioned FERC to deny Vanguard’s request. Claiming that residents of their states could be harmed if utilities are compelled to stop using fossil fuels in favor of wind and solar power, the attorneys general argued that “Vanguard is not entitled to a blanket authorization to acquire substantial equity and voting power in utility companies.”