Utilities Face Legal Challenges Over Data Center Power Costs

Utility companies in Wisconsin and Florida are facing regulatory challenges over how to bill energy-intensive data centers without shifting costs to ordinary ratepayers.

In Wisconsin, Microsoft Corporation and the Citizens Utility Board of Wisconsin filed protests with the Federal Energy Regulatory Commission against a plan proposed by We Energies and the American Transmission Company. The proposal sought a 15-year agreement for Microsoft's Mount Pleasant data center, utilizing minimum transmission charges to prevent overbuilt infrastructure costs from falling on other customers. Microsoft argues the plan is systemically flawed and lacks transparency, while the Citizens Utility Board claims the proposal fails to fully shield ratepayers from cost shifts.

Simultaneously, the Florida Public Service Commission is reviewing whether a proposal from Duke Energy complies with Senate Bill 484. The law requires large load customers to bear their own full cost of service. While Duke Energy argues it cannot set new rates until its current agreement expires in 2027, consumer advocates and some commission members contend the proposal is noncompliant because it lacks specific new rates for large load customers. The commission is expected to issue a written order following the submission of post-hearing briefs.