PSC analysts, groups say We Energies’ proposed data center rates pose risks to customers | Wisc…

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PSC analysts, groups say We Energies’ proposed data center rates pose risks to customers

Interest groups say We Energies' proposal needs changes to protect customers

Analysts for state utility regulators and interest groups say a proposal from We Energies for special electric rates charged to data centers could pose risks for other customers’ utility bills.

Public Service Commission of Wisconsin staff and interest groups raised concerns in their testimony that without stronger safeguards, the proposal could burden regular customers with higher costs.

“The bottom line is we think there are loopholes in what We Energies has proposed that actually do put customers at risk of paying additional costs with this data center wave,” said Tom Content, executive director of the Citizens Utility Board of Wisconsin.

Wisconsin debates how to pay for the power-hungry AI boom

How much should data centers pay for the massive amounts of new power infrastructure they require? Wisconsin’s largest utility, We Energies, has offered its answer to that question in what is the first major proposal before state regulators on the issue.

Under the proposal, currently open for public comment, data centers would pay most or all of the price to construct new power plants or renewables needed to serve them, and the utility says the benefits that other customers receive would outweigh any costs they shoulder for building and running this new generation.

But environmental and consumer advocates fear the utility’s plan will actually saddle customers with payments for generation, including polluting natural gas plants, that wouldn’t otherwise be needed.

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