Wisconsin Lawmaker Proposes Policy for Large Energy Consumers to Generate Own Power
Wisconsin State Representative Dan Knodl proposes a "Bring Your Own Energy" policy to address the increasing electricity demands of large facilities like data centers. He argues that existing ratepayers should not bear the costs of new infrastructure required by these projects. Instead, large energy users should be encouraged to develop their own dedicated generation resources, such as small modular nuclear reactors (SMRs), to support their operations.
Wisconsin State Representative Dan Knodl (R-Jackson), representing the 24th Assembly District, has voiced concerns over the escalating electricity demands from large projects, particularly data centers, which can consume as much power as small cities. He argues against the current practice where existing residential, commercial, and industrial ratepayers are expected to subsidize the new electricity infrastructure required by these facilities, noting that Wisconsin families and businesses are already struggling with rising utility costs. Knodl previously supported eliminating the state sales tax on electricity and advocated for stronger ratepayer protections during the Public Service Commission's review of a proposed data center tariff.
Knodl proposes a "Bring Your Own Energy" policy, suggesting that the beneficiaries of significant energy investments, such as large data centers, should bear the costs of any additional generation capacity, transmission infrastructure, substations, or grid upgrades they necessitate. This policy would encourage companies building large data centers to construct or finance their own dedicated generation facilities, potentially on-site, to meet their specific energy demands. He highlights small modular nuclear reactors (SMRs) as a promising technology that could provide the consistent, carbon-free baseload power required by data centers.
The representative outlines several advantages to this approach: it shields existing ratepayers from cost-shifting, reduces strain on Wisconsin's current power grid, lessens the need for expensive and time-consuming new transmission infrastructure, and enhances reliability by adding new generation resources. Knodl clarifies that this principle is not a mandate for every large customer to build a power plant but rather a guiding framework for policymakers, utilities, and regulators when assessing projects with extraordinary energy requirements.
Ultimately, Knodl asserts that Wisconsin can attract new investment and foster innovation while simultaneously protecting its residents and businesses from unnecessary financial burdens and ensuring grid reliability. His core message is that if new development demands more power, the developers should provide their own energy solutions.