Large energy customers and data centers would face fees and standards

The Department of Administration would collect annual fees based on large energy customers’ forecast peak electricity demand. Covered customers have monthly demand of at least 1,000 kilowatts of electricity or 10,000 decatherms of gas energy, and monthly utility bills totaling at least $60,000 within the utility’s service area. Customers would notify the Department of Administration that they qualify and provide their demand forecast when asked. Listed annual fees are $2 million for at least 100 but less than 250 megawatts and $3 million for at least 250 but less than 500 megawatts. The schedule adds $1 million for each further 250-megawatt band beginning at 500 megawatts. It does not specify a fee below 100 megawatts. Half the money would go to the utility public benefits fund. Half would go to the Wisconsin Economic Development Corporation to support the Green Innovation Fund. The Department of Administration would set the collection schedule. Peak demand would be forecast for the next 12 months.

The Public Service Commission would review very large customers’ electric rates and require utilities to offer optional contracts for electricity from new renewable resources. The commission would define the very large customer group for each electric utility. Commercial and industrial customers could choose to get some or all of their electricity through the renewable contract. The commission would adjust rates or service terms if it finds the rates unreasonable, unfairly favorable, or unfairly discriminatory. Renewable contracts would maintain reliable service, include an appropriate credit on energy charges, and make participants pay all proportional costs of adding renewable resources. Utilities could not shift these costs between participants and other customers. An existing renewable rate offering could qualify if it meets the requirements. Energy utilities would report data centers’ energy use and sources, including renewable energy generated on site and renewable energy credits purchased. The commission would publish combined data. Utilities offering a rate or contract rate to very large customers would apply for review by April 1 every other year. Data center energy reports would be quarterly.

Laborers and mechanics building or refurbishing large-scale data centers would receive the required wage. Large-scale data centers must total at least 25,000 square feet and have at least $250 million in combined construction or refurbishment, technology equipment, and software costs. Workers would receive the prevailing wage, a wage standard referenced in federal law. Workers covered by a union contract would receive the higher of that standard or their contract wage. The prevailing wage could not be below a reasonable living wage. For Wisconsin Economic Development Corporation certification for sales and use tax exemptions, covered work would meet the wage rules and at least 70 percent of annual electricity would come from renewable resources. The $250 million threshold counts costs within any 60-month period beginning on July 1, 2026.

Data center owners or operators would certify to the Department of Safety and Professional Services that their buildings meet an accepted green building standard. This covers buildings owned, leased, or operated by the same business or an affiliate and built or rehabilitated to house networked computer servers. The center would need certification under one of the specified sustainable design or green building standards.

Water utilities would notify the Public Service Commission about major planned water use. Local governments would require data centers to report actual water use. The notification rule covers water utility customers. The reporting rule covers data center owners or operators within a city, village, town, or county. Notification would apply when a new customer’s planned use, or an existing customer’s planned increase, would make that customer account for 25 percent of all customers’ water use. Local governments would publish data center water reports on their websites, if available, or through a public notice. Data centers would report no later than one year after becoming operational and annually thereafter.