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Microsoft objects to cost agreement for data center power
Microsoft says the pact could shift more than $600 million in transmission costs to Wisconsin customers and lacks firm upgrade deadlines.
Microsoft filed an objection with the Federal Energy Regulatory Commission regarding an agreement between We Energies and the Wisconsin Public Service Commission, claiming the pact fails to protect consumers from costs linked to its $20.6 billion data center projects.
The dispute centers on a proposal to bill Microsoft over $600 million for new power infrastructure serving its Mount Pleasant campus, as the company argues the deal lacks sufficient safeguards for existing customers' electric bills.
Excluded from negotiations, Microsoft noted that American Transmission Company and We Energies could be capable of "updating the schedule, and thus the payments, if their timelines slip," while the current proposal reportedly contains "significant deficiencies."
To resolve these deficiencies, Microsoft requested that the Federal Energy Regulatory Commission initiate hearing and settlement judge procedures for infrastructure projects in Port Washington and Racine County, estimated to lead to $4 billion in new natural gas projects.
Data center developments managed with Oracle involve $2 billion in new power lines across Wisconsin and Michigan's Upper Peninsula, while the Citizens Utility Board joined consumer advocates raising concerns about the transmission cost plan.