We Energies customers share concerns over data center rate proposal
MILWAUKEE (CBS 58) -- Data centers are popping up all over the country -- our state has 40 and counting. However, many residents are voicing their concerns over potential costs passed onto them.
Wisconsin's Public Service Commission (PSC) heard public comments for over three hours on Tuesday afternoon as hundreds of people from all over Wisconsin are sharing their concerns. It has to do with the proposal from We Energies' parent group, the Wisconsin Electric Power Company, as it looks for approval of its "Very Large Customer Tariff" and "Bespoke Resources Tariff."
"It’s crazy. I don't know how to say it in fancy terms. It's crazy," shared one We Energies customer. Another, Amy Donahue, said, "I see my own rates go up and have to make my own choices." Meanwhile, Mike Dellger shared, "I'm concerned that the cost of the electricity that it’ll take to power these places will not be foisted upon the general public."
The "very large customer" would use over 250 MW with a contract term of 10 years. For gas-only projects, the customer, or data center, would pay for 75% of the Bespoke Resource's costs, while other customers, residents in this case, would pay for 25% of construction and all fuel costs.
"Why shouldn't these data center companies pay 100% of the cost when they reap 100% of the profits?" asked Senator Chris Larson.
We Energies said to fuel major companies' data center developments, they've made billions of dollars' worth of investments in upgrades and made compromises bringing the usage down from 500 MW to 250.
Last week, Bert Garvin, We Energies executive vice president for external affairs, told CBS 58, "We’ve developed a proposal, our customer protection plan, that ensures that when they come to Wisconsin, they’ll be paying for all the generation and wires to serve them... those costs will not be paid for by our non-data center customers.”
Nonetheless, the proposal shows that "non-participating customers will pay 25% of the revenue requirement plus 100% of fuel costs" for gas-only data centers.
Customers are still asking for the PSC to reject the proposal. "We are in unprecedented times, and PSC's decision in this case will shape utility bills for years to come," said Jayne Black, with Moms Clean Air Force.
If you want to share your opinion on the proposal, you can join the 6 p.m. public meeting virtually on Feb. 10 or submit a written comment to the Public Service Commission through Feb. 17. Those comments will be relayed to the commission this Thursday, Feb. 12.
We're told a vote on this proposal could happen within the next three months.