LoginWisconsin Democrats unveil bill to cap energy costs
Wind turbines rise up above farmland near Middleton on November 19, 2013. (Photo by Scott Olson/Getty Images)
Wisconsin Democrats have announced a bill that would cap residential energy bills at 2% of household income.
On Tuesday, Democrats said the proposal from Rep. Darrin Madison (D-Milwaukee) would protect Wisconsinites’ bank accounts while the state finds ways to expand clean energy production in the face of climate change and manage the increasing energy burden posed by data center developments across the state.
“Rising energy rates are becoming an unsustainable burden on regular people in Wisconsin,” Madison said at a Tuesday morning press conference. “Our energy system still has big problems to tackle, like dramatically moving towards carbon-free electricity, or the challenge of data centers, which are currently on course to double the amount of energy creation in Wisconsin. Regardless of your stance on data centers, artificial intelligence and the role these technologies can or should play in our communities, the people of Wisconsin must have their energy burden lifted. This bill is a common sense, necessary protection for people struggling to afford their basic needs before we take further action on any of these things as legislators to address those issues.”
At the press conference, residents who have struggled with energy bills spoke about how getting power disconnected can reverberate through people’s lives, causing health problems or forcing choices between other household costs.
“We’re doing everything we can, yet we still cannot keep up,” said Jill Sexton, a Wausau resident who is on disability assistance with a husband on Social Security. “I ended up taking a part time job specifically to cover the increase in our electric and heating bills. Nowadays, here’s our reality: Each month we choose between paying the electric bill and heat bill or filling our prescriptions. Some months I don’t buy the medication. Some months we stretch food until the very last day.”
Several lawmakers tied the bill to the national Democratic party’s growing focus on “affordability” and bipartisan skepticism of data centers.
“We have the money. It’s all about how we prioritize where we spend it,” Rep. Ryan Spaude (D-Ashwaubenon) said at the press conference. “Folks in my district and around the state are on a knife’s edge. Many of them are just barely getting by. This bill is going to do something. It’s going to keep more money in their pockets. It deserves a hearing and it deserves to be passed by this body.”
Legislators announced the bill just as communities are grappling with the construction of massive data centers across the state. While the centers can provide an easy source of property tax revenue for local governments, they also use a massive amount of water and energy — raising questions about the protection of local water supplies, adequacy of the state’s existing renewable energy sources and concerns that a data center-generated spike in energy use will be passed on to local ratepayers.
Last week, Sen. Jodi Habush Sinykin (D-Whitefish Bay) and Rep. Angela Stroud (D-Ashland) introduced a bill that would require data centers to cover the cost of increased energy use, mandate the development of more clean energy and ensure data center construction pays local workers living wages.
“While our state energy system faces deep uncertainty, especially when it comes to the climate crisis, we’re responding to data centers that are going to have increasing energy demands and raise rates for many communities,” said Rep. Francesca Hong (D-Madison) who is running in the Democratic primary for governor. “It is vital that we cap all utility payments at 2% of income so that we can protect our ratepayers and our communities first. This bill is a clear and systemic practical response to rising energy rates, and it’s one of the key cornerstone priorities of the Assembly Democrats’ affordability agenda.”
Under the rate cap bill, the Public Service Commission would be responsible for administering an energy burden relief fund. The fund would cover the difference for any household with energy costs that are more than 2% of the monthly household income. The bill would give the PSC 12 months after enactment to start the fund and three years to automatically enroll every eligible household.
The bill would allow the PSC to prioritize households making less than 300% of the federal poverty level, only provide payments to cover energy costs for primary residences and provide a maximum energy use threshold to prevent people from receiving state aid for energy intensive home businesses such as mining cryptocurrency.
Also, the bill would prevent public utility companies from disconnecting the service of people making less than 300% of the federal poverty level and require the PSC to annually report the number of utility disconnections.
