Data center boom spotlights Wisconsin’s Public Service Commission. Here’s what the agency does.

Wisconsin’s Public Service Commission typically operates far from the spotlight, quietly regulating the utilities most residents only notice when the lights go out. But a wave of proposed energy-intensive data centers in Wisconsin is fueling wider public interest in the agency’s work.
“These are the three most important people in state government that nobody has ever heard of,” said Tom Content, executive director of the state Citizens Utility Board. “They are setting the state’s policy for its energy future.”
With six new data centers planned or under construction in Wisconsin, the commission must now decide how — or whether — Wisconsinites should pay to keep them running.
Balancing utility and ratepayer interests
The agency — more than a century old and among the first of its kind in the country — oversees Wisconsin’s utilities, both public and investor-owned. It balances two sometimes conflicting goals: the financial stability of utilities, without which the state’s grid could fall into disrepair, and fair treatment of utility customers. The commission’s roughly $39 million budget for the 2027 fiscal year primarily comes from fees paid by utilities, which pass those costs on to their customers.
The PSC isn’t always the decision maker on energy policy. State lawmakers can write rules for utilities for the PSC to enforce. But when state law leaves room for interpretation, the PSC is left to decide.
Most utilities under the PSC’s authority are municipal water and sewer services — the Milwaukee Water Works, for instance.
But many of the PSC’s highest-stakes decisions center on investor-owned utilities. Private gas and electrical utilities don’t compete for customers. As “regulated monopolies,” each is the sole provider in its portion of the state. The PSC acts as the regulator, approving rate hikes, bond issues and major construction projects.
The PSC also approves utilities’ “return on equity” — a profit margin factored into ratepayers’ bills. In Wisconsin, that rate typically runs around 10%.
Powering the data center boom
The PSC lacks a direct say in data center construction. But because data centers demand vast amounts of electricity, it decides how to distribute the costs of new infrastructure needed to power data centers.
The commission approved the construction of We Energies natural gas plants in Oak Creek in Milwaukee County and the town of Paris in Kenosha County in May 2025.
Both plants are part of We Energies’ more than $2 billion plan to expand its natural gas generation capacity to meet surging electricity demand largely driven by data centers. Planned data centers in Mount Pleasant and Port Washington alone are projected to expand service area electricity demand by 40% between 2026 and 2030.
Wisconsin has no precedent for handling such a surge in demand for electricity.
Now the commission is considering a We Energies proposal for a new payment structure for “very large customers” that could set the standard for allocating the costs of building and operating power plants needed to meet data center demands.
“Our proposed data center rate is considered by many people to be the gold standard, and one that could be a model for what others across the country use,” We Energies spokesperson Brendan Conway wrote in an email to Wisconsin Watch.

The Sierra Club is among several advocacy groups involved in the We Energies case as an “intervenor,” meaning it can question the utility and provide expert witnesses.
“What the PSC requires them to do will likely influence future decisions on large customer rates, which is why it’s so important that we get this right this time around,” said Cassie Steiner, a senior campaign coordinator with the Sierra Club’s Wisconsin chapter.
The PSC is also weighing an Alliant Energy proposal to establish a payment structure for Meta’s planned data center in Beaver Dam. Some critics argue Alliant Energy should propose a framework covering all data center customers rather than a one-off agreement.
At the heart of the debate: Should Wisconsin’s residential and industrial customers cover any of the costs of powering new data centers?
To answer that question, the PSC holds proceedings in which utilities and intervenors trade questions and answers about the risks and rewards of a utility’s proposal. The commission collects up to $542,000 from utilities to help intervenors pay attorneys and expert witnesses; utilities cover their own expenses. Utility customers ultimately pay for both sides through their electricity bills.
Not all intervenors are critics. Microsoft and data center developer Vantage have intervened in the We Energies case. The proposed payment structure reflects negotiations between the three companies that took place before We Energies filed its case before the PSC.
Utilities generally work closely with data center developers. Four of Wisconsin’s investor-owned utilities, including We Energies’ parent company, are founding members of the state’s Data Center Coalition, which says it aims “to ensure our state’s significant growth in data center development translates into sustainable economic benefits.” A data center boom is good business for utilities because they earn a return on any new infrastructure they build.
High-demand customers like Microsoft can also intervene and provide key data to inform PSC decisions.
In the We Energies case, details about Microsoft’s projected energy use for its southeast Wisconsin facilities are protected by an order that limits access to the PSC and other parties in the case.
The PSC needs the data to judge whether proposed arrangements — like granting data centers 100 megawatts of free electricity if they exceed the supply agreed to in their contracts — properly balance the interests of utilities and the public. Microsoft successfully moved to shield that information from public disclosure on the grounds that it could give competitors a window into their operations.
“Load forecasts are sensitive because they give competitors information about our business outlook and investment decisions,” a Microsoft spokesperson told Wisconsin Watch.

Alliant’s one-off payment structure case is subject to even greater access restrictions: Entire pages of the proposed contract between Alliant subsidiary Wisconsin Power and Light and Meta are redacted.
As the PSC considers the two cases, customers are still being billed in the same manner as large industrial customers — a payment structure not built for such high electricity demands. Critics of the We Energies proposal agree some alternative is needed.
“They would be better off recognizing that there are some potential harms to other customers even with the proposal they have out there,” said Brett Korte, a staff attorney with the advocacy group Clean Wisconsin.
In written testimony, We Energies Vice President and Treasurer Tony Reese wrote that the new payment structure must leave non-data center customers “no worse off” than under the status quo.
Parties that disagree with a PSC outcome can appeal in court. One such challenge reached the Wisconsin Supreme Court in 2005, when the justices upheld the commission’s approval of a coal plant expansion in Oak Creek.
The commissioners
Unlike state Supreme Court justices, PSC commissioners are not elected. Governors appoint them to staggered six-year terms, subject to Senate confirmation. Gov. Tony Evers appointed all three current commissioners. Chairwoman Summer Strand has served on the commission since 2023; commissioners Kristy Nieto and Marcus Hawkins took their seats in 2024.
The commissioners are supported by a full-time staff of researchers, auditors, attorneys, accountants and a range of other specialists to inform their decisions. Nieto and Hawkins previously worked on the PSC’s staff.
Former commissioners occasionally land jobs with the utilities they once regulated. Six months after stepping down from the PSC in February 2024, commissioner Rebecca Valcq took a job with Alliant Energy — the parent company of Wisconsin Power and Light, which provides electricity for much of central and southern Wisconsin. She became the company’s president in 2025.
Moves like Valcq’s have drawn concerns from watchdogs about utilities’ influence over the agency built to regulate them. Wisconsin law bars ex-commissioners from testifying before the PSC for a year after leaving. State Rep. Amanda Nedweski, R-Pleasant Prairie, wants to extend that window, proposing a three-year “cooling off period” before ex-commissioners can take executive roles with utilities, enforced by the Wisconsin Ethics Commission.
“Historically, good-government reforms that rein in the influence of special interests tend to draw bipartisan support,” Nedweski wrote in an email — though she said she hasn’t yet secured any Democratic co-sponsors.
What’s next?
The PSC is set to hold its next hearing in the We Energies case on Tuesday, with room for residents and interest groups to weigh in.
Hanging over the finer details of the proposal is a larger question: What risks will ratepayers bear if the data center boom later goes bust?
“Of course no company is too big to fail,” Reese wrote last month. “But in the very unlikely event that a customer as massive and financially stable as Microsoft becomes unable to meet its financial obligations,” his company’s proposal promises “adequate protection” to the utility and customers.
“Making sure our customers aren’t stuck paying data centers’ costs is at the foundation of our customer protection plan,” We Energies spokesman Conway told Wisconsin Watch.
Considering that Wisconsin ratepayers still owe nearly $1 billion on “stranded assets” — power plants that have been shut down due to obsolescence — critics of the data center proposals are skeptical.
Will the utility’s proposed guardrails hold up in a worst case scenario? That’s now up to the PSC.

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Data center boom spotlights Wisconsin’s Public Service Commission. Here’s what the agency does. is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.