Today, it was reported that big data center developers and We Energies have asked the Wisconsin Public Service Commission (PSC) to exempt them from consumer protections that prevent ratepayers from being on the hook for the costs of power plants and other utility infrastructure built for data centers if those projects fail to materialize.
The PSC approved these protections in April, requiring large customers like Oracle—the anchor tenant of the $15 billion Port Washington Lighthouse campus—to either meet strict credit benchmarks or post collateral covering the value of infrastructure built specifically to serve their facilities. Oracle, despite a $592 billion market cap, is now asking the PSC to allow it to post only a fraction of the required collateral, effectively asking Wisconsin families to bear the remaining risk if the project doesn’t pan out.
In response, Evergreen Action State Advocacy Director Courtney Brady released the following statement:
“Oracle is worth more than half a trillion dollars and has the audacity to ask Wisconsin families to cover its future losses. That takes a special kind of nerve. The company is asking state regulators to tear up consumer protections so it doesn’t assume the risk of its investments that solely benefit big data centers, not ratepayers. That means if a data center project fails, Wisconsin families are on the hook for the costs of power plants built to serve a single corporate tenant.
“Wisconsin cannot afford more risk when it comes to explosive data center growth and its impact on everyday people. While states across the country are strengthening protections to ensure data centers bear the costs and risks they create, We Energies and Oracle are asking Wisconsin regulators to go backward by rolling back safeguards that protect Wisconsin families and small businesses.
“The PSC must stand up for ratepayers and hold firm. The pressure to weaken these protections will only grow, and state regulators must resist it. With so much unchecked data center development, utilities and tech giants will keep looking for ways to maximize their profits and pass the risks onto families. The answer is not weaker guardrails on data centers—it’s stronger ones, paired with the cheap clean energy that can actually meet growing demand without blowing up ratepayer bills.”
