Mount Pleasant data center contract retains power plant provision struck down by Wisconsin regulators
Microsoft's data center contract with We Energies for its Mount Pleasant facility includes a power plant location provision that was previously rejected by the Wisconsin Public Service Commission. While We Energies states it will follow the PSC's order over the contract language, the discrepancy has raised questions among observers and ratepayer advocates.
A contract between We Energies and Microsoft for the tech company's Mount Pleasant data center retains a provision requiring power plants to be located in eastern Wisconsin or Michigan's Upper Peninsula, despite the Wisconsin Public Service Commission (PSC) rejecting this geographic constraint in May. The 15-year electric service agreement was signed in July, months after the PSC voted to remove the limitations.
The PSC had sided with ratepayer advocates and clean energy groups, who argued that such restrictions would limit Microsoft's access to more affordable wind power from other parts of the Midwest. We Energies, conversely, had contended that local plants would reduce grid failure risks and simplify maintenance, citing its majority stake in the local transmission utility, American Transmission Company (ATC).
While Microsoft signed the contract as-is after the PSC declined its request to reopen the case, We Energies spokesperson Brendan Conway confirmed the utility would adhere to the PSC-approved rules rather than the contract's outdated language, committing to work with the commission to resolve the discrepancy. PSC spokesperson Meghan Sovey-Lashua emphasized that both companies are legally bound by the commission's terms.
Ratepayer advocates, including Wisconsin Citizens Utility Board Executive Director Tom Content, expressed concern over why an outdated contract was presented for signing. Microsoft is slated to purchase electricity from the planned Red Oak Ridge Energy Center in Kenosha County, a natural gas plant that We Energies is seeking PSC permission to acquire from developer Invenergy.