THE POTHOLES WHEN YOU SEE THEM. WE’VE POSTED A LINK IN THIS STORY TO DO SO ON THE 12 NEWS MOBILE APP. >> THE WISCONSIN UTILITY GIANT. WE. ENERGIES IS ADDING MASSIVE AMOUNTS OF POWER TO ITS GRID, BUT AN OVERSIGHT BOARD SAYS YOU WILL NOT HAVE TO COVER THAT COST. 12 NEWS EMILY POFAHL TONIGHT WITH THE DECISION, EXPERTS SAY COULD RESHAPE THE FUTURE OF UTILITIES IN THE SYSTEM IN WISCONSIN. >> ON THE DOCKET AT THE STATE CAPITOL. >> THIS IS A SIGNIFICANT AND CONSEQUENTIAL TARIFF DOCKET UNLIKE ANYTHING THE COMMISSION HAS SEEN BEFORE. >> WE ENERGIES PLAN TO CREATE A NEW ENERGY RATE FOR DATA CENTERS BUILDING IN WISCONSIN. THE STATE’S UTILITY OVERSIGHT BOARD HAD THE FINAL SAY FRIDAY. >> THE PSC WENT FROM AN AGENCY NOBODY KNEW TO. ONE ON THE FRONT PAGE OF NEWSPAPERS MOST WEEKS. >> THIS NEW RATE IS MEANT TO PROTECT WISCONSINITES FROM SEEING THEIR ENERGY COSTS SPIKE AS WE. ENERGIES PREPARES TO ADD MASSIVE AMOUNTS OF POWER TO ITS GRID. THE DATA CENTER IS GOING UP IN PORT WASHINGTON, AND MOUNT PLEASANT COULD ULTIMATELY REQUIRE AS MUCH ENERGY AS ALL CURRENT WE ENERGIES CUSTOMERS COMBINED. >> REQUIRING ENERGY AMOUNTS COMPARABLE TO A MIDSIZE METRO AREA. >> THE BOARD SPENT THE LAST 13 MONTHS PICKING APART THE PLAN AND ANNOUNCED SOME CHANGES THEY SAY WILL MAKE DATA CENTER COMPANIES PAY 100% OF THE COSTS. >> EXISTING 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. >> PUTTING THEM ON THE HOO
Advertisement Wisconsin data centers to pay full energy costs under new rate, regulators say Wisconsin's Public Service Commission approved a new energy rate requiring data centers to cover all energy costs, protecting residents from higher bills. Editorial Standards ⓘ
Wisconsin's Public Service Commission approved a new energy rate Friday, requiring data centers to pay 100% of their energy costs to prevent residents from facing increased bills. "This is a significant and consequential tariff docket unlike anything the commission has seen before," PSC Chair Summer Strand said. The new rate is designed to shield Wisconsin residents from energy cost spikes as We Energies prepares to add massive amounts of power to its grid. The data centers being built in Port Washington and Mount Pleasant could eventually require as much energy as all current We Energies customers combined. "Requiring energy amounts comparable to a mid-size metro area," Strand said. The PSC spent 13 months reviewing the plan and announced changes to ensure data center companies cover all costs. "Existing 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," Commissioner Kristy Nieto said. The Commission lowered the energy demand threshold for rate eligibility from 500 MW to 100 MW, to include smaller data centers. The Commission also extended the rate contract length from 10 years to 15 years. This change prevents cost-shifting to existing customers.And, the Commission removed a capacity-only option that would have allowed data centers to only pay for 75% of the costs of power plants while other We Energies customers paid the remaining 25%. Consumer advocate Tom Content of the Citizens Utility Board called the decision a win. "Putting them on the hook for all the power is important," Content said. "It's been a whirlwind." We Energies issued a statement, saying, "We recognize our responsibility to continue providing safe and reliable energy. As data centers come to Wisconsin, we are working to make sure every customer benefits economically, without being forced to cover the costs for someone else's power." When asked about the impact on residents' energy bills, Content said, "It's a lot less risk this evening than it was going into today." The PSC's decision only addressed the data center energy rate. Future approvals for power plants or other construction projects will require separate reviews.