Wisconsin’s Public Service Commission (PSC) has decided not to reconsider We Energies’ request to loosen credit rating rules for data center developers. The commission had previously voted to require data center developers with below-threshold credit ratings to provide financial guarantees before receiving electric service from We Energies.

Background

The requirement could cost tech giant Oracle, the co-developer of a Port Washington data center campus, over $100 million per year. We Energies had asked the PSC to reconsider the rule, arguing that the added cost could dissuade other companies from operating in Wisconsin.

The PSC will instead defend the credit rating requirements in Ozaukee County Circuit Court, where Oracle sued the agency last month. Oracle argues that the commission acted outside its authority and without sufficient evidence to justify the rule.

The new rate structure requires We Energies to bill data center customers alone for power plants built to serve them. A single power plant can cost hundreds of millions of dollars, and if a data center developer goes bankrupt, We Energies’ other customers could be on the hook for any remaining costs tied to the power plants.

Reaction

Wisconsin’s Citizens Utility Board and other ratepayer advocacy groups supported the “belt-and-suspender” approach to protecting smaller customers. The environmental advocacy group Clean Wisconsin also applauded the commissioners, saying that the PSC did the right thing by rejecting the petition.

Original reporting: Wisconsin Watch — read the source article.