Microsoft challenges $600M data center power plan
Microsoft is challenging a $600 million power plan proposed by American Transmission Co. and We Energies for its Mount Pleasant, Wisconsin data center campus, arguing it does not adequately protect existing utility customers from bearing the costs. The tech giant's stance is supported by consumer advocate Citizens Utility Board, who also raised concerns about cost allocation transparency. The Federal Energy Regulatory Commission is being urged to scrutinize the plan.
Microsoft has formally disputed a more than $600 million power plan by American Transmission Co. (ATC) and We Energies designed to cover the costs of new power lines and substations for its data center campus in Mount Pleasant, Wisconsin. The tech giant, which is the sole customer for this infrastructure, asserts that the proposed agreement does not go far enough to safeguard existing utility ratepayers from potentially incurring these transmission costs.
In an Aug. 21 public filing, Microsoft argued that it was not consulted on the agreement, which it claims contains "significant deficiencies" and may not be "just and reasonable." The company highlighted that the plan lacks mechanisms to prevent We Energies' retail customers from paying for these facilities, potentially leading to them paying twice. This position aligns with President Donald Trump's pledge to protect U.S. households from data center-related utility price hikes.
The Citizens Utility Board (CUB), a consumer advocacy group, echoed Microsoft's concerns, stating the agreement lacks clarity on how transmission costs are tracked and assigned. CUB Executive Director Tom Content warned that up to five million ATC customers in Wisconsin and Michigan's Upper Peninsula could be burdened with these costs without proper protections. ATC, in response, stated it is reviewing Microsoft's filing and plans to demonstrate that existing customers are fully protected.
Microsoft has requested the Federal Energy Regulatory Commission (FERC) to facilitate a meeting to resolve these issues or, failing that, reject ATC's plan. The Public Service Commission of Wisconsin also commented that while the plan is an improvement, more work is needed to achieve just and reasonable transmission rates. FERC is expected to establish more robust frameworks for transmission cost allocation later this year, which could impact ATC's future plans.