Alliant Energy ordered to refile data center power plans

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A Madison-based utility company must refile its contract agreement for the Beaver Dam data center under orders from a state commission.

Alliant Energy must refile its Individual Contract Agreement with the Public Service Commission of Wisconsin after advocacy groups and community members submitted concerns over transparency. The utility resubmitted the application Feb. 27 to power the Meta data center in Beaver Dam with a list of redactions.

At a hearing on Feb. 26, PSC officials told Alliant Energy to submit again with fewer redactions.

In November, tech giant Meta and Gov. Tony Evers announced a $1 billion artificial intelligence data center in Beaver Dam. Meta anticipates the project to create 1,000 construction jobs and for the data center to come online in 2027. It’s one of several data center megaprojects ongoing across Wisconsin.

Alliant Energy officials said in an email on Friday they met PSC’s request and are waiting for their new application to be reviewed. PSC has 30 days to respond.

The Individual Contract Rate is designed to protect customers from energy cost increases, Alliant officials said. The ICR is a customized, binding contract with one customer, officials added.

“Individual Contract Rates provide Alliant Energy the opportunity to ensure there are benefits to all customers when adding a customer of this size to our utility system, while also ensuring the costs are paid by that customer specifically,” officials said.

Under the contract, Alliant will supply up to 220 megawatts of power for 10 years. Meta and Alliant can negotiate a rate after the 10-year term.

In a letter to an administrative law judge, Rebecca Valcq, company president of Alliant Energy, wrote that the redactions qualified as trade secrets under Wisconsin law. The letter addressed redactions including the commercial operation dates, the minimum demand of power by the customer, and pricing for demand, service and termination.

Advocacy groups, who have shared concerns over electricity rates for customers and water usage and electricity usage by data centers, praised the PSC’s decision to order refiling.

“This is a meaningful win for the residents, small businesses and advocates who spoke up to ensure the public has the information needed to evaluate whether this agreement protects Alliant customers,” wrote members of Power Wisconsin Forward in a statement.

In December, Midwest Environmental Advocates filed a lawsuit in Dane County Circuit Court to force PSC to release records with the projected energy demand for the Beaver Dam data center.

MEA filed the lawsuit after the PSC denied a records request for unredacted documents for electricity usage by the Beaver Dam data center project and another in Port Washington owned by Vantage Data Centers. The case is still open.

The public comment period on Alliant Energy’s application to power the Beaver Dam data center was extended to Monday.