Are AI data centers driving up energy bills in Wisconsin?
We Energies has proposed a new energy rate for data centers in Wisconsin, claiming data centers will pay 100% of their energy costs while customers benefit. However, watchdog groups express concern that projected costs might be inaccurate, leading to ratepayers covering the difference.
In Wisconsin, We Energies has put forth a proposal for a new data center energy rate, asserting that data centers would be responsible for 100% of their energy costs, including the expense of building and maintaining plants. Under this proposal, general customers are projected to accrue hundreds of millions of dollars in energy benefits over the plants' lifespan. The Public Service Commission is currently reviewing this proposal and may make adjustments.
Conversely, watchdog groups are raising concerns, suggesting that the projected costs might not align with actual expenses, potentially leaving ratepayers to cover any shortfalls. We Energies indicated that their proposal includes provisions for readjustments after a few years. The Public Service Commission is also engaged in a separate, transparent process concerning natural gas plants, which are considered 'capacity only' plants, and this process is currently ongoing.