With Sharp Criticism, Regulators Approve Electric Rates For Facebook-Meta Data Center

The Wisconsin Public Service Commission (PSC) has approved electricity rates for Meta's billion-dollar data center campus in Beaver Dam, operated by Alliant Energy. The decision was met with sharp criticism from PSC members, customer advocates, and environmental groups who expressed concerns over a lack of transparency and potential risks to ratepayers. PSC Chair Summer Strand specifically denounced the "black-box approach" involving nondisclosure agreements and heavily redacted filings, emphasizing that such secrecy harms the public interest. Under the approved agreement, Alliant Energy will supply Meta's data center, an affiliate named Degas LLC, with 220 megawatts of power over a 10-year term. Regulators imposed several conditions on Alliant Energy, requiring the utility to apply for standard rates for all future data center customers with loads of 100 megawatts or more, and demanding more detailed reporting and cost analyses. They also strengthened termination charges for Meta, ensuring the company pays for its minimum energy demand for the full 10-year term even if service is terminated early. Despite these conditions, advocacy groups like the Citizens Utility Board and Clean Wisconsin had pushed for even stronger protections, including longer contract terms and a denial of the individual contract in favor of standard rates from the outset. Tom Content of the Citizens Utility Board noted the decision sends "a clear message that tech companies are going to have to pay their way when they come to Wisconsin." Additionally, Midwest Environmental Advocates has filed an ongoing lawsuit against the PSC, seeking the release of Meta ’s projected energy demand data. Meta had previously announced plans for a 700,000-square-foot data center creating over 100 permanent jobs, with nearly $200 million in infrastructure investments. Regulators also directed Alliant to work with American Transmission Co. to ensure other Wisconsin customers are not billed for transmission costs related to Meta's or other data centers.