We Energies disclosed Friday that it has reached an agreement with cloud‑computing giant Oracle to let the company “subscribe” to between 10% and 20% of the electricity generated at the Point Beach Nuclear Plant in Manitowoc County. The power would be used to meet the energy needs of Oracle’s Project Lighthouse data‑center campus in Port Washington, a joint venture with artificial‑intelligence firm OpenAI.
Potential cost savings for ratepayers
We Energies spokesman Brendan Conway said that, if the deal receives final approval from the Wisconsin Public Service Commission, the arrangement could spare the utility’s other customers roughly $300 million in fuel costs over the next five years. Those savings would stem from the lower operating cost of nuclear fuel compared with the utility’s reliance on more expensive natural‑gas generation.
Regulatory hurdle
The agreement still requires the Wisconsin Public Service Commission’s sign‑off. The commission will evaluate whether the subscription model aligns with state energy policy and whether it protects consumers’ interests.
Background on Point Beach
Point Beach, the state’s only operating nuclear facility, is 60 years old and the largest electricity generator in Wisconsin. While nuclear power provides a steady baseload, the plant’s electricity is generally more costly than other sources. We Energies currently pays about twice as much for fuel at Point Beach as its sister utility, Wisconsin Public Service Company, largely because of the higher cost of nuclear fuel.
We Energies owned Point Beach until 2007, when it sold the plant to independent energy‑infrastructure company NextEra Energy but kept purchasing most of its output. The existing purchase agreement runs through 2033, and the utility recently signed a new 20‑year contract to buy roughly 86% of the plant’s electricity.
Parallel natural‑gas proposal
In a separate filing, We Energies asked the commission for permission to build a new natural‑gas power plant on the site of the Fox Energy Center in Outagamie County. The proposed facility would more than double the current output of the Fox site, adding additional capacity to the region’s grid.
Local impact
Port Washington officials welcomed the prospect of a reliable, low‑carbon power source for the Oracle data center, which is expected to create high‑tech jobs and attract further investment to the area. Community leaders also noted that the nuclear‑based supply could help keep electricity rates stable as the region’s demand grows.
Critics of the deal pointed to the higher cost of nuclear electricity and raised concerns about long‑term waste management. However, We Energies emphasized that the subscription model does not increase the overall cost of power for its customers and that the nuclear plant will continue operating under existing safety and environmental regulations.
Next steps
The Public Service Commission is slated to hold a hearing on the Oracle subscription and the Fox natural‑gas plant later this year. Both proposals will be scrutinized for their impact on ratepayers, grid reliability, and Wisconsin’s broader energy‑transition goals.
Original reporting: Wisconsin Watch — read the source article.
