MADISON – The Public Service Commission of Wisconsin (PSC) today took up We Energies’ Very Large Customer (VLC) and Bespoke Resources Tariff application and issued a decision that protects existing customers and improves public transparency into the energy-related costs data centers will pay.

Utility tariffs set the rates, terms, and conditions of service utilities provide to customers within their service territory. When a utility wants to create a new tariff or make changes to an existing tariff, it must receive PSC approval to do so because the PSC regulates electric, gas, and water utilities in Wisconsin. The Commission does not regulate the permitting, construction, or operations of data center facilities.

In March 2025, We Energies submitted an application proposing the new tariffs in response to large data center customers entering the utility’s service territory. The PSC conducted a thorough, year-long review of the tariff application, which included detailed scrutiny and analysis by PSC staff and intervening parties, and a robust public engagement process. Throughout the proceeding, members of the public and participating organizations raised concerns about aspects of the utility’s application and how it could impact existing customers.

In its decision today, the Commission made major modifications to improve the tariff. The following is a non-exhaustive list of actions taken to strengthen protections for We Energies’ existing customers and increase transparency and visibility:  

  • The Commission extended the VLC tariff minimum initial term length to 15 years. This change prevents cost-shifting to existing customers.
  • The Commission lowered the energy demand threshold for tariff eligibility from 500 MW to 100 MW. This change expands tariff applicability to smaller data centers, which further shields existing customers from data center-related costs.
  • The Commission required tariff revisions to address the risk of transmission cost shifting from data center customers to existing customers.
  • The Commission removed a capacity-only option that would have allowed data centers to only pay for 75% of the costs of generating facilities. The removal of this capacity-only option and the approval of the Full-Benefits resource model protects existing customers by requiring the VLCs to pay 100% of their costs.
  • The Commission ordered additional reporting requirements to provide visibility into how the tariffs work in practice and created a mechanism for the Commission to make future adjustments if needed.
  • The Commission ordered additional reporting requirements to bring greater transparency to agreements between the utility and its VLCs.

If the Commission had denied We Energies’ application, and/or a new very large customer tariff was not established, large data centers would receive utility service without conditions specifically designed to safeguard existing customers from data-center related costs.

The Commission discussed this case during its April 24, 2026 open meeting. A full recording of the open meeting is available on the PSC’s YouTube channel. Below are public statements made by commissioners during the open meeting:

“Today I will seek several modifications to reach two overarching, crucial goals: to increase transparency and visibility into the utility and its data center customers, and to ensure the tariffs we approve today include the necessary protections to safeguard existing customers from harm, consistent with our statutory obligations,” said PSC Chairperson Summer Strand.

“We need to do everything within our jurisdiction to make sure data center customers will pay their own way, fully and transparently, and other customers will be held harmless,” said PSC Commissioner Kristy Nieto.

“I’d also like to acknowledge the attention the issue of transmission costs has gotten from intervenors and the public. Without the large and loud engagement on this topic, I doubt we would have seen the movement we have from the applicant and ATC to evaluate creative solutions to this issue,” said PSC Commissioner Marcus Hawkins.

Background on Docket 6630-TE-113

In March 2025, We Energies submitted an application seeking approval of its Very Large Customer and Bespoke Resources Tariffs. All documents related to this proceeding are available under Docket 6630-TE-113 on the PSC’s Electronic Records Filing (ERF) System. The Commission’s Final Order will be posted to ERF in the coming weeks once it’s available.  

Background on the PSC

The PSC is a quasi-judicial body composed of three full-time Commissioners who make decisions in cases related to utility operations, rates, and construction projects. In each case, the Commissioners are responsible for independently reviewing the application and the full record of evidence, analyzing and weighing the evidence, and ultimately reaching a decision that complies with state law. 

The PSC regulates the electric, gas, and water utilities that are obligated to provide service to customers, including data centers, located in their service territories. The PSC has no direct regulatory oversight of the development or operations of data centers and does not grant permits to construct or operate data centers in Wisconsin. Additional information about the PSC and data centers is available at The Public Service Commission and Data Centers.

Disclaimer

This document is being made available to assist in the reporting of the Public Service Commission’s decisions and ensure public transparency of PSC proceedings. This document provides an overview of the preliminary decision(s) verbally made in the Public Service Commission’s open meeting. This document is not intended to modify, supplement, or be a substitute for the Commission’s orders. The Commission’s Final Order is the official action of the Commission and will be available in the coming weeks.