We Energies Contracts Controversy: Microsoft Signs Outdated Deal for Data Center Power

Microsoft's new 15-year contract for its Mount Pleasant data center includes a provision that was previously struck down by Wisconsin regulators. The Public Service Commission (PSC) voted in May to remove geographic constraints on where power plants serving the data center could be located, but We Energies included this restriction in the contract it sent to Microsoft.

We Energies claims it will follow the commission's order and allow Microsoft to subscribe to new power plants outside of eastern Wisconsin and Michigan's Upper Peninsula. However, ratepayer advocates question why an outdated version of the contract was signed in the first place.

The PSC-approved rate structure for large data center customers allows them to purchase electricity from power plants built or purchased specifically for their use. We Energies argued that these plants should be located as close as possible to the data centers they serve, citing concerns about grid failures and coordinating repairs.