WPT Weekly Insider: We Energies Proposal Would Harm Residential & Small Business Ratepayers
We Energies Proposal Would Harm Residential & Small Business Ratepayers
By: Representative Adam Neylon
Last week, I submitted testimony in opposition to We Energies’ proposal creating Very Large Customer and Bespoke Resources tariffs for data centers.
Wisconsin supports economic development, but it must be pursued responsibly. Regulators have a duty to protect ratepayers from unreasonable costs and financial risk. This proposal fails that standard for three reasons.
First, the 500-megawatt threshold for “very large customers” is far higher than standards in most states, where special tariffs often apply at 70–100 megawatts or even lower. Setting the bar so high risks excluding large loads that still significantly impact the grid and ratepayers.
Second, the proposed “capacity only” option shifts costs and risk. Data centers would pay just 75 percent of new plant construction costs, while other customers would cover the remainder and all ongoing fuel costs. Many of these facilities would not be needed but for data center demand. All generation, fuel, and transmission costs should be fully assigned to the customers creating the demand. Wisconsin families and small businesses should not subsidize highly profitable energy users.
Third, the proposal lacks adequate guardrails. It does not guarantee full cost responsibility, zero cost shifting, or strong exit protections. If a data center downsizes or leaves, stranded costs could fall on other customers.
I urge the Public Service Commission of Wisconsin to reject or substantially revise this proposal to ensure full protection for Wisconsin ratepayers.