Wisconsin data centers to pay full energy costs under new rate, regulators say

Wisconsin's Public Service Commission (PSC) has unanimously approved a new energy rate requiring data centers to pay 100% of their energy costs. This significant decision, which PSC Chair Summer Strand called "unlike anything the commission has seen before," aims to shield Wisconsin residents from potential energy cost spikes. The new rate comes as We Energies prepares to add substantial power to its grid to meet the demands of new data centers in locations like Port Washington and Mount Pleasant, which could collectively require as much energy as all current We Energies customers. After a 13-month review, the PSC introduced several changes to the energy tariff. Commissioner Kristy Nieto emphasized that "existing Wisconsin customers should not pay a single cent to subsidize the service of data centers." Key adjustments include lowering the energy demand threshold for rate eligibility from 500 MW to 100 MW to encompass smaller data centers, extending the rate contract length from 10 to 15 years to prevent future cost-shifting, and eliminating a capacity-only option that would have allowed data centers to pay only 75% of power plant costs. Consumer advocate Tom Content of the Citizens Utility Board lauded the decision as a victory for residents, reducing their risk of higher bills. We Energies issued a statement affirming its commitment to providing reliable energy and ensuring that data centers do not burden existing customers with their power costs. The PSC's ruling specifically addresses the energy rate, with future approvals for power plants or other construction projects requiring separate reviews.