MILWAUKEE – Power Wisconsin Forward released the following statement in response to the Public Service Commission’s (PSC) decision on We Energies’ proposed Very Large Customer (VLC) rate structure (Docket 6630-TE-113):

Today, the Public Service Commission took significant measures to protect Wisconsin customers from the energy and infrastructure costs associated with data centers. The Commission is following through on its duty to ensure affordable utility service, protect consumers, and require data centers to pay the full costs to supply their electricity.

While we await the final written order, the PSC’s preliminary decisions today align with what Wisconsin families, small businesses, and clean energy advocates made clear during public hearings and intervenor testimony: data centers must pay the full costs of the energy and infrastructure they require.

As Commissioner Nieto underscored: “Wisconsin customers should not pay a single cent to subsidize the service of data centers or very large customers – not now and not decades from now. Those [VLC] customers must bear the full cost of the infrastructure required to serve them – generation, transmission, distribution – and that those costs must be fully and transparently assigned. When we leave here today, we should be able to say clearly and unequivocally, there are no discounts here and no shifting of risks.”

The Commission is taking several important steps to protect customers, including enforcing the requirement that data centers pay for 100% of the costs for their electricity generation and not spread the costs and fuel risk to other customers. In addition, the Commissioners voiced support for additional ways to hold very large energy users accountable for costs, including:

  • Extending the service contract length to 15 years
  • Lowering the megawatt threshold to 100 MW and making the tariff mandatory for customers over that threshold
  • Eliminating the capacity-only option that would have required

non-participating customers to pay 25% of construction costs and all future fuel costs

  • Acting within its state jurisdiction to reduce the risk of non-participating customers covering billions of dollars in data center-related transmission costs, while recognizing the critical role the Federal Energy Regulatory Commission (FERC) will play in safeguarding Wisconsin customers.
  • Clarifying that the utility should consider all cost-effective resource options, including demand response, flexible load and aggregated demand solutions in meeting data center energy requirements.

At the same time, today’s discussion represents just one step in a much larger set of decisions ahead. As Commissioners acknowledged, the case is unprecedented in scale, and significant risks remain – particularly related to future generation and transmission investments.

Key upcoming proceedings, including Alliant Energy’s proposed contract, We Energies’ upcoming rate case, and American Transmission Company’s (ATC) filing at FERC, will determine whether Wisconsinites are ultimately protected from the

long-term costs of data center development. We appreciate the Commission’s work to date and will remain engaged as these next decisions move forward.

For direct quotes from Power Wisconsin Forward partners, please see the attached quote sheet or contact powerwisconsinforward@muellercommunications.com.