All three members of the Public Service Commission criticized the lack of transparency from Meta and Alliant Energy during a meeting Thursday in which the body approved a contract for the social media giant to obtain power for its planned data center in Beaver Dam. 

Meta is in the process of spending more than $1 billion to construct a hyperscale data center campus that, when completed, would use six to eight times more power than the city of Beaver Dam’s current energy load. 

Like similar massive data center projects across the state, Meta’s Beaver Dam project has drawn opposition from local residents. For months, the project was shrouded in secrecy with Meta operating under the name Degas LLC. Opponents have complained about the lack of openness, the massive use of energy and the impact the construction and operation of the center could have on the community. 

PSC Chair Summer Strand said in her opening remarks she didn’t understand “why it needed to be this difficult” to achieve a transparent process. 

“To me, transparency is not a cliche, feel good, bare minimum, check the box concept,” Strand said. “If there’s one takeaway from our discussion and decisions today I want it to be clear that, whether you’re a large load customer coming into Wisconsin for the first time, or regulated entity familiar with our process, transparency — and by that I mean actual and real transparency — is the foundational expectation and a necessity.”

Commissioner Kristy Nieto said in her opening remarks Thursday morning that the case is one of the “most consequential” decisions the PSC has seen. 

“It bears repeating, existing Wisconsin customers should not pay a single cent to subsidize the service of data centers, not now and not decades from now,” Nieto said. “This means these very large customers must bear the full cost of the infrastructure required to serve them — generation, transmission and distribution — and that those costs must be fully and transparently assigned.” 

The three members of the commission lamented the redactions that had initially been made to the documents submitted in the case — which were later removed after objections from outside parties including members of the public, Clean Wisconsin and the Citizens Utility Board. 

The commissioners also decided that moving forward, hyperscale data centers constructed within Alliant’s territory must pay for and receive energy through a standardized tariff, rather than a one-off contract negotiated without public scrutiny. Late last month, the PSC made a similar ruling for large customers in WE Energies territory. 

Under the PSC order, Alliant will have to develop a tariff that applies for any data centers using more than 100 megawatts of energy. The Meta campus is expected to use 220 megawatts. 

“This is not going to be the last data center contract we see from this utility, and I will say Alliant needs standard guidelines and rules for its data center customers,” Nieto said. “A clear public tariff would create consistent, transparent rates and rules for future data centers, instead of handling each one through separate, confidential negotiations.”

While Alliant was ordered to develop a tariff rate for large customers, the PSC on Thursday approved the contract negotiated between Meta and Alliant with some modifications meant to insulate regular customers from bearing the costs of Meta’s energy use and any related infrastructure upgrades by Alliant. Nieto said denying the agreement while the tariff rate is developed would have allowed Meta to operate for up to a year without any guardrails, an outcome she said didn’t think would benefit anyone.

Brett Korte, a staff attorney with Clean Wisconsin, said the PSC putting a halt to the development of a case-by-case patchwork of data center energy deals in Alliant’s territory — which covers parts of more than a dozen Wisconsin counties — will protect Wisconsinites.

“Tariffs create a consistent, transparent framework that helps protect the public interest,” Korte said in a statement. “Without them, Wisconsin risks a patchwork system where costs and responsibilities are unclear and potentially shifted onto other utility customers.”

After the meeting, consumer advocacy and environmental groups were complimentary of the PSC’s actions.

“Today, the Public Service Commission highlighted the importance of transparency and oversight: accountability is a must, and it cannot be bypassed,” Britnie Remer, organizing director of climate advocacy group 350 Wisconsin. “The Commission also recognized that protecting Wisconsinites from subsidizing billion-dollar data centers needs to be front and center when it comes to these massive projects. With more data center proposals inevitable, requiring tariff filings in the future will ensure large energy customers pay for their costs, not our families and small businesses.”

A Dane County judge dismissed a lawsuit from 15 Wisconsin children who had challenged laws they argued made climate change worse and violated their constitutional rights. 

The lawsuit was filed in August by the groups Our Children’s Trust and Midwest Environmental Advocates against the state Public Service Commission and Legislature. 

The suit argued that state lawmakers have made a number of declarations that the state’s energy production should be decarbonized and the greenhouse gas emissions of that production should be reduced, but state laws prevent that from happening. 

The state’s law for siting power plants requires that the state Public Service Commission determine that “[t]he proposed facility will not have undue adverse impact on other environmental values such as, but not limited to, ecological balance, public health and welfare, historic sites, geological formations, the aesthetics of land and water and recreational use.” However the law also prohibits the PSC from considering air pollution, including from greenhouse gas emissions, in that determination. 

Additionally, the state set a goal in 2005 that 10% of Wisconsin’s energy come from renewable sources by 2015. That goal was met in 2013. However, now that the goal has been met, state law treats it as a ceiling on renewable energy the PSC can require.

In a decision issued last week, Judge Julie Genovese said she’s sympathetic to the children’s argument but that the lawsuit was asking her to weigh in on a fundamentally political, not legal, question. 

“While the court is sympathetic to the youths and admires their willingness to access the courts in their quest to protect the planet, I conclude that the case must be dismissed because environmental policy is a nonjusticiable political question,” she wrote. 

Attorneys for the Legislature had also argued that the children didn’t have standing to bring the case, pointing to a federal court decision in a similar case in California. 

But in other states similar cases have had more success. A group of Montana children successfully sued to protect their right to a clean environment in 2024. 

Tony Wilkin Gibart, MEA’s executive director, told Wisconsin Public Radio he believes there’s a strong case for the ruling to be appealed. 

“Youth plaintiffs are frustrated,” he said. “They’re also incredibly determined and have expressed a lot of resolve to continue this fight.”