Mr Fraser is among than 50 prominent Australians who have signed a letter against the sale, including the actress Cate Blanchett and Justice Marcus Einfeld.
The federal government has unveiled plans to impose a 35-percent cap on foreign ownership of the electricity generator.
It would also restrict individual foreign owners' holdings to 15- percent.
The Snowy scheme was established in the wake of the Second World War with many post-war migrants working on the project.