Utility companies are spending billions building out transmission and distribution lines around the country, leading some to call for an independent monitor to protect customers. Photo by Robert Zullo.

The Sierra Club released a statement Friday criticizing recent residential rate increases for We Energies approved by the Wisconsin Public Service Commission (PSC). Increases of 13-14% were approved by the commission on Nov. 7, after We Energies proposed a 19% increase. The Sierra Club claims in a press release that the rate increase rewards the utility provider for “bad decisions, such as past investments in fossil fuels.” The environmental advocacy organization is calling on the PSC to scrutinize We Energies’ plans for a $2 million methane gas plant, which the Sierra Club fears will raise the costs even more. 

“We are disappointed in this decision, but we’re not going to stop fighting to put people first. We appreciate the Commission scrutinizing We Energies’ claims about the needs for this increase. We Energies’ poor investment in fossil fuels have put us in this place. Going forward, we hope to see the Commission continue to investigate We Energies’ claims about the needs of its customers. This will be more critical than ever as the Commission rules on decisions about new gas facilities that could result in stranded assets, hurting our communities even more,” said Cassie Steiner, Senior Campaign Coordinator of Sierra Club – Wisconsin. “For so many people, higher utility bills mean greater financial strain for everyday needs– from affording rent or their mortgage, to being able to put food on the table for their family. People shouldn’t have to choose between affording groceries and keeping the lights on.”

In its press release, the Sierra Club states that We Energies makes more than double the revenue of the next largest utility in Wisconsin, and has one of the highest electricity rates in the Midwest. According to the Citizens Utility Board, the costs paid by We Energies customers have more than doubled over the past 20 years, at a faster rate than inflation. 

Emily Park, co-executive director of 350 Wisconsin, expressed deep disappointment at the PSC’s decision. “This decision will hurt people already struggling to pay for everyday needs for their families, like putting food on the table, affording basic health care, and keeping their homes at a livable temperature,” said Park. “At a time when so many communities are facing uncertainties about their futures, the people of Wisconsin deserve to know that their public agencies are looking out for them, not the corporations.”

In a statement to Wisconsin Examiner, We Energies spokesperson Brendan Conway said, “We appreciate the commission’s vote in support of our investments to reduce customer outages, build clean energy and critical infrastructure needed to support jobs and economic growth in Wisconsin, and meet [Environmental Protection Agency] rules.” Conway added that “our typical customer bills are below the national average and in line with customers across the Midwest. That will remain true in the coming years. Any customer concerned about their energy bill should contact us right away to discuss energy assistance and bill payment plans.”

A solar energy array. Environmental groups are calling on Microsoft to bypass a planned gas-powered electricity project and instead focus exclusively on solar and wind power for its data center in Racine County. (Photo courtesy of the National Center for Appropriate Technology and the Agrisolar Clearinghouse | USDA)

A coalition of environmental and health groups has called on Microsoft to rely on clean energy generation instead of a proposed expansion of methane-fueled power for its planned Racine County data center — projected to become Wisconsin Electric’s “largest electric load.”

In an open letter to Microsoft, the groups charge that the plan underway by We Energies to build new methane gas power plants  “will push our state’s climate goals out of reach, locking us into 30 more years of fossil fuels at a time when we all know we must rapidly transition to clean energy.”

We Energies defended its plan Thursday, calling the gas plants an essential transition step as the company expands its clean energy portfolio.

Microsoft’s decision to build an artificial intelligence data center in Mount Pleasant has been highlighted as a Wisconsin economic development success story, but alongside that has come a growing awareness about the heavy demand that data centers and AI make for electric power.

In testimony to the state Public Service Commission supporting a proposed rate increase to pay for the cost of expanded methane power generation, a Microsoft consultant said the data center is expected “to become the largest electric load” served by Wisconsin Electric, the Milwaukee Business Journal reported. Wisconsin Electric is a subsidiary of We Energies.

The letter distributed Thursday by Clean Wisconsin and signed by a dozen organizations declares that if carried out, the utility’s plan will increase air pollution from nitrogen oxide, particulate matter, lead, carbon monoxide, volatile organic compounds and greenhouse gasses that contribute to climate change.

 “It’s time for Wisconsin to leave these dangerous ways to produce energy behind, not double-down on dirty fuels in the name of new technology,” the letter states.   

Instead of backing the methane power build-out, the letter urges Microsoft to embrace expanding solar and wind power in Wisconsin to meet the increased demand.

“Microsoft’s recently-announced plan to help fund a currently unspecified 250-megawatt solar project in Wisconsin is a good start, but this represents just a fraction of the data center’s energy needs,” the letter states. “There must be more.”

The letter cites Microsoft’s public claims of commitment to addressing climate change.

“This data center project represents a critical opportunity to help drive change in Wisconsin and put us on a path to clean wind and solar,” the letter states. “Microsoft knows what we all know, that the window to make meaningful progress in the fight against climate change is closing, and the decisions we make right now matter.”

In a statement Thursday responding to the letter, We Energies spokesman Brendan Conway said the new proposed natural gas generation plants were necessary to ensure reliable service as the company continues its move toward cleaner power sources.

“Now more than ever, it is critical for us to have quick-start gas plants available and running in our state for those times when intermittent renewable generation cannot meet customers’ energy needs,” Conway said. He called the gas plants “the cheapest, most reliable and lowest carbon approach to support our customers when solar and wind are not able to provide enough power.”

The proposed plants comply with EPA emission standards, Conway said. He added that We Energies continues to expand its clean energy production, spending more than $7 billion on solar, wind and battery storage capacity by 2028. The utility calculates that with those investments it will be producing four times its current output of non-carbon energy within five years.