Wisconsin regulators to decide on We Energies' data center electric rates

The Wisconsin Public Service Commission (PSC) is scheduled to vote on April 24 on a new electric rate proposed by We Energies specifically for large artificial intelligence data centers. The utility's proposal aims to ensure that major data center projects, such as those in Mount Pleasant and Port Washington, pay their "fair share" for their substantial electricity needs and associated infrastructure development, preventing costs from being passed onto residential and other business customers. We Energies is investing billions in new solar, wind, and power plants to meet this demand. Consumer advocacy groups, including the Citizens Utility Board of Wisconsin and Clean Wisconsin, oppose aspects of We Energies' plan. They argue the proposal fails to fully protect residents from bearing extra costs, particularly concerning two new natural gas plants totaling over $2 billion, where data center customers would cover 75% of capital costs, leaving 25% and annual fuel costs to other customers. Intervenors have urged regulators to strengthen service agreements and add financial guarantees to protect residents if data centers shut down prematurely or underutilize projected electricity. The PSC, meeting in Madison, will decide whether to approve We Energies' rate proposal as is, approve it with modifications suggested by consumer advocates, or deny it entirely. The commission regulates utilities by setting electric rates for different customer classes, rather than approving specific data center projects. The new rate is intended for "very large" customers drawing 250 megawatts or more, and the outcome of this closely watched case could have national implications for how states manage the energy demands of the rapidly expanding data center industry.