Scott Lauber
WEC Energy Group chief executive officer Scott Lauber said the company is having “really good discussions” with potential very large customers in addition to the data center projects being developed in Mount Pleasant and Port Washington.
“Just to get everyone expectations, we’re talking with a variety of customers, I would imagine really look at just do it one at a time. I just don’t want everyone to think there’s three or four that are going to come in any day now,” Lauber said on the company’s earnings call with analysts.
He said the projects would not be quite as large as the Microsoft and Oracle projects currently underway in Mount Pleasant and Port Washington, but described them as bringing an additional 400 to 500 megawatts of energy demand to the state.
Lauber highlighted WEC’s very large customer tariff, which sets rates and requirements for data centers or other customers with more than 100 megawatts of new demand, as a benefit in attracting new customers. Specifically, he pointed to its transparency and “complete openness that we’re charging them their fair share.”
He also said he didn’t think the tariff’s credit and collateral requirements, which were tightened by the Public Service Commission during the approval process, would hurt the utility as it pursued additional customers.
“I think the key is we have true transparency so people know what that collateral need is and as they look at our tariffs and look at the sites, they understand the requirements,” Lauber said.
Oracle, which is slated to operate at the Port Washington data center being developed by Vantage Data Centers, had asked the PSC to reconsider its decision on the credit requirements, contending the tighter requirements would potentially cost it more than $100 million. The company has since filed a lawsuit over the decision.
Lauber said the company remains committed to the project and meeting the requirements and the legal challenge is about “how do they think about the future more long-term.”
The potential for additional data center customers comes as the projects are growing increasingly unpopular in Wisconsin.
A Marquette University Law School poll in early July found 76% of registered voters feel the cost of data centers outweigh the benefits, up from around 70% in February and March and 55% in October.
Lauber, however, highlighted potential benefits of property taxes, jobs and the allocation of WEC Energy Group’s costs, potentially saving customers $100 million in the company’s current rate case.
“We just got to make sure everyone has the facts in front of them,” he said.
Asked about potential political pushback, Lauber did note one candidate for governor – democratic socialist Francesca Hong – has proposed a moratorium on data centers, although he did not mention her by name.
“I think right now everyone’s on the campaign trail,” he said. “We really got to get them understanding the facts.”
In response to another analyst question on the state’s political climate, Lauber noted Wisconsin’s reputation as “a pretty purple state” and said the company had found success working across both sides of the aisle.
“When you think about our positions and what we’ve been fortunate enough to do, we’ve been working with both sides of the aisle and been very successful over the last several decades, working on both sides of the aisle to promote a strong economy with a strong, reliable distribution, electric, gas distribution system. So I feel good. We continue to work progressively with our governor and the Legislature,” he said.
Lauber highlighted the transparency created by the company’s very large customer tariffs.
“It’s important for every official, the governor, as they get elected, to make sure they understand data centers, make sure they understand the economy and how that works,” he said. “I think when you look at our tariffs, having very much transparency in our tariffs for the very large customers is going to be very helpful. And all the customers we work with, they are committed to paying their fair share. So I think when you think about the transparency, they’re paying their fair share, the benefits and property taxes, and they see the complete story and true transparency, I think that’s going to be helpful as they look about where they govern the state of Wisconsin.”
“We’ve had some discussion with some of them,” Lauber said. “The key is we work with both sides. It’s just a matter of how do we make Wisconsin successful from economic and for all the residents of Wisconsin.”
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View all postsElizabeth Morin is a writer based in Virginia Beach. She is passionate about local sports, politics and everything in between.
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