“Why Should Ratepayers Foot the Bill? Unpacking Wisconsin’s $16 Billion Data Center Tariff Controversy”

Standing up to a powerful utility like We Energies—the only major electric utility in the region—and Wisconsin’s largest philanthropic institution is an especially bold and risky move for Walnut Way. These entities hold considerable influence over public investments, policy decisions, and the flow of resources in Milwaukee and across the state.​

Challenging such dominant organizations can be dangerous for a community-based group. It risks future funding, stakeholder relationships, and the organization’s ability to participate in critical decision-making. Yet, Walnut Way’s willingness to challenge these giants reflects a commitment to genuine accountability and real community representation—actions that are rarely taken in a landscape as segregated and unequal as Wisconsin’s. Their stance is a necessary, courageous step to ensure that community voices are heard and that new projects truly serve local residents, even when facing serious institutional pressure.

What’s happening: Major utilities are proposing new tariffs—complex energy pricing rules that could shape who pays for Wisconsin’s data center boom, how much, and what our communities get in return. Yet, without strong voices for equity at the table, these decisions risk leaving neighborhoods like ours behind. See Clean Economy Coalition

A “tariff” is simply the set of rules that utilities use to decide how much everyone—families, businesses, and big companies—have to pay for electricity. Right now, utility companies and new data centers want the state to approve a plan to spend more than $16 billion building power plants and infrastructure just to supply these data centers, which could use more energy than all the homes in Wisconsin combined.​ Take a survey

The problem? We energies wants regular people and small businesses to help foot the bill—by raising everyone’s rates—while the data centers and utilities profit. All this while making energy truly affordable for everyone in Wisconsin would cost less than $500 million. That means the resources exist to help families struggling with their bills, but the current plan puts corporate profits ahead of affordability and community needs.

Why it matters: Tariffs have a direct impact on every household’s electric bill, the affordability of keeping the lights and heat on, and whether new money from tech giants will help or hurt frontline neighborhoods. Decisions made now will shape utility rates, infrastructure, and fairness for decades.

Why Walnut Way intervened: Walnut Way is stepping up as an “intervenor” in the Public Service Commission (PSC) tariff docket—joining legal proceedings, submitting testimony, and fighting for our seat at the table. Intervenors have the power to cross-examine utility proposals, demand community benefits, and require utility transparency. If we don’t speak up, policies may be set that overlook equity, workforce development, local hiring, and bill assistance for those most in need.

Across Wisconsin and the country, community benefits agreements (CBAs) are increasingly being implemented by tech companies, institutions, and utilities to ensure that major projects deliver tangible benefits for local residents—like workforce development, affordable access, and community investments. In Wisconsin, tech sector projects and utilities are beginning to include CBAs as part of new data centers and broadband infrastructure, promising collaboration with local organizations and direct investment in education, workforce, and housing.​

Elsewhere, tech giants such as Google and Microsoft have pioneered major CBAs tied to data centers and renewable energy projects. For example, Microsoft’s solar and data center agreements have included commitments for workforce training, supplier diversity, local hiring, educational partnerships, and millions in community funding. Google has also made similar investments in community infrastructure and broadband where it operates large technology campuses and data centers. These models are being adapted to Wisconsin’s landscape, offering new opportunities for local communities to shape the future benefits of tech and infrastructure development.

What we’re fighting for:

• Community Benefits Agreements: Ensuring large energy users, like data centers, pay into funds that will support local renewable energy, weatherization, and job training.

• Ratepayer Protection: Making sure new utility infrastructure isn’t just a blank check that sticks residents with higher bills or stranded costs if data centers leave.

• Equity and Affordability: Advocating for targeted bill credits and affordability programs so low- and moderate-income families share in the benefits—not just the burdens—of these big energy deals.

• Transparency: Demanding that decisions about customer costs and utility profits are made in the open—not behind closed doors or via confidential deals with tech giants.

How we do it:

• We join forces in coalitions with partners, attorneys, and advocates who share our commitment to justice and fairness.

• We submit direct testimony, participate in hearings, and file public comments.

• We push for settlement agreements that guarantee lasting benefits and system-wide improvements for all Milwaukeeans.

The bottom line: By intervening, Walnut Way is ensuring that community voices are not only heard, but matter, in shaping Wisconsin’s clean energy transition and making sure the economic benefits reach those who need them most.

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