On Friday, April 24, the Public Service Commission of Wisconsin (PSC) approved We Energies’ proposed rate structure for data centers and other very large customers, but only after making important changes to protect existing ratepayers.
In an important win for ratepayers, the PSC rejected elements of the original proposal that would have shifted costs onto the public. Instead, it said data center operators must pay the full cost of the new generation needed to serve them, including not just infrastructure, but also fuel and other associated expenses.
Modifications made by the PSC reflect many of the priorities that MEA and our partners had advocated for. The PSC strengthened the proposal by:
— Extending the service contract length to 15 years
— Lowering the megawatt threshold to 100 MW and making the tariff mandatory for customers over that threshold
— Eliminating the capacity-only option that would have required non-participating customers to pay 25% of construction costs and all future fuel costs
— Acting within its state jurisdiction to reduce the risk of non-participating customers covering billions of dollars in data center-related transmission costs, while recognizing the critical role the Federal Energy Regulatory Commission (FERC) will play in safeguarding Wisconsin customers.
— Clarifying that the utility should consider all cost-effective resource options, including demand response, flexible load and aggregated demand solutions in meeting data center energy requirements.
Moving forward, regulators must continue to strengthen protections for ratepayers while ensuring that new energy demand does not undermine Wisconsin’s transition to clean, affordable energy.
