Xcel Energy asks regulators to protect existing customers from bearing data center expenses
Xcel Energy has filed a proposal with the Wisconsin Public Service Commission to require large electricity users, such as data centers, to cover 100% of their infrastructure and electrical costs. The utility states this measure is designed to shield existing customers from bearing these expenses. The Commission is expected to review the proposal, with Xcel seeking approval by February 2027.
Xcel Energy has submitted a proposal to the Wisconsin Public Service Commission seeking to mandate that large electricity customers, including data centers, assume full responsibility for infrastructure and electrical costs associated with their operations. Tyrel Zich, Xcel Energy's regional vice president of regulation policy, stated that the initiative aims to protect existing customers from these expenses and mitigate risks posed by high-energy users. The proposed plan targets new projects and expansions exceeding 100 megawatts.
Under the terms of the proposal, these large customers would be required to sign 15-year contracts, make consistent monthly payments, and incur exit fees if they cease operations. Zich emphasized the importance of ensuring that the customers necessitating these significant investments are the ones who pay for them. The Wisconsin Public Service Commission is slated to review the proposal in the coming months, with Xcel Energy requesting a decision by February 2027.