Seeking approval of a transmission charge agreement for Microsoft’s data center in Mount Pleasant, We Energies and American Transmission Co. last month filed plans with both state and federal regulators to protect rate-paying customers from transmission costs associated with data centers in general, according to a report from Wisconsin Public Radio.
The application with the state Public Service Commission says ATC will calculate a minimum transmission charge that would require We Energies to pay for the full amount of transmission capacity requested for the project, even if Microsoft ultimately uses less capacity than anticipated.
The proposal is the first in a series of agreements that would also protect ratepayers from bearing transmission costs for other data center projects, including projects in Port Washington and Beaver Dam.
Bob McKee, director of interconnection solutions at ATC, called it “just another mechanism” the company has put in place to protect customers.
He said the company requires minimum transmission charge agreements when transmission construction costs exceed $100 million or when transmission facilities are designed to serve more than 100 megawatts of demand.
“We’ve had other ways to protect customers from costs associated with the transmission capacity requested for a specific large load project, like a data center,” he said. “This is the newest protection.”
