We Energies reassured shareholders that Oracle’s ongoing dispute with state regulators over new credit rating requirements for data center operators poses no threat to the planned hyperscale data center in Port Washington.
Background
Wisconsin’s Public Service Commission (PSC) approved a rate structure for We Energies’ large customers that requires operators like Oracle to pay for the construction of new power plants needed to meet data center energy needs.
The PSC set a AAA- credit rating threshold for data center operators seeking electric service from We Energies. Companies below the threshold must post steep collateral, either in cash or lines of credit, as a backstop.
Oracle, which is co-developing the Port Washington data center campus with OpenAI and Vantage, could face over $100 million per year in financial security payments due to its current BBB credit rating.
Response
We Energies asked the PSC to reconsider the rule last month, arguing that the added cost could dissuade other companies from operating in Wisconsin.
WEC Energy Group CEO Scott Lauber told investors that the Port Washington facility remains on track to come online as soon as late 2027, despite Oracle’s lawsuit against the PSC.
Original reporting: Wisconsin Watch — read the source article.
