Data centers might cost us now, but they could pay off later | Opinion

In an opinion piece for the Milwaukee Journal Sentinel, Bill Marsan, executive vice president and general counsel for American Transmission Company (ATC), responded to an earlier op-ed questioning the financing of data center-related transmission costs in Wisconsin. Marsan clarifies ATC's use of Construction Work in Progress (CWIP) as an accounting practice for new transmission projects, likening it to phased payments for a home addition rather than a loan for a neighbor's mortgage. He explains that while CWIP means consumers begin paying for infrastructure before completion, it helps ATC secure lower interest rates and spreads costs over the project's lifespan, ultimately leading to lower long-term rates. This contrasts with Allowance for Funds Used During Construction (AFUDC), where costs are deferred and then recovered at higher rates post-completion. Marsan asserts that ATC is collaborating with local distribution companies to ensure data centers bear all reasonably allocable construction costs. He contends that the transmission build-out for data centers will enhance service and reduce rates for all customers over time. The piece concludes that there is no inherent conflict between Wisconsin consumers and data center development, provided utilities, operators, and regulators cooperate to adapt rules for current needs.