Wisconsin Public Radio reports that a proposal from We Energies for special electricity rates charged to data centers could raise customer utility bills.
The Public Service Commission of Wisconsin staff and interest groups raised the concerns, noting a need for stronger safeguards.
“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,” Tom Content, executive director of the Citizens Utility Board of Wisconsin, told WPR.
We Energies’ energy demand is expected to double by 2030 due to data center projects in Mount Pleasant and Port Washington. The energy company is expected to spend $19.3 billion on new electric generation over the next five years.
Last year, We Energies filed an application with the PSC to approve special rates for data centers, aimed at requiring such centers to cover the cost of building energy infrastructure for their developments. The proposed rates would apply to customers requiring enough electricity to power hundreds of thousands of homes.
A proposal for data center energy would put a 75-25 split on the costs, with data centers covering the higher end. But volatile energy prices have utility auditors unsure of the plan, especially if data centers end up using less power or leave the state.
