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Public Service Commission (PSC)
The PSC is a quasi-judicial body composed of three full-time Commissioners who make decisions in cases brought to the PSC related to utility operations, rates, and construction projects. In each case, the Commissioners are responsible for independently reviewing the application and the full record of evidence, analyzing and weighing the evidence, and ultimately reaching a decision that complies with state law.
For more information about Commission actions, visit:
PSC Forms of Commission Actions.
Data Centers
The data center industry is rapidly growing across the country including in Wisconsin.
Wisconsin's Data Center Sales and Use Tax Exemption defines data centers as buildings constructed or rehabilitated to house a group of networked computer servers to centralize the processing, storage, management, retrieval, communication or dissemination of data and information. Some data centers require large amounts of energy and, if developed in Wisconsin, could be considered among the highest energy users in the state.
Regulatory Authority of Data Centers
The PSC has
no direct regulatory oversight of the development or operations of data centers and does not grant permits to construct or operate data centers in Wisconsin. The PSC does regulate the electric, gas, and water utilities that are obligated to provide service to facilities, including data centers, located in their service territories.
PSC Utility Rate Regulation
If a utility in Wisconsin wants to establish a new rate or modify the existing rates they charge their customers, the utility must receive approval from the PSC to do so. The PSC is responsible for reviewing these applications, often in the form of tariffs or individual contracts, then determining the electric, gas, or water rates a utility can charge customers, including data centers. Application review occurs through agency proceedings, and rates are determined by Commission decisions which are issued through final orders.
Tariffs are service offerings that often include the rates, terms, and conditions of utility service for specific customer groups. Existing utility tariffs can be viewed here:
PSC - Utility Tariffs. Questions about a specific tariff or tariff proposal should be directed to the utility.
Occasionally, specific customers like data centers or other large energy users participate in rate case, tariff, or individual contract proceedings, but these customers do not file applications with the Commission to operate in Wisconsin, nor are their operations regulated by the PSC.
To learn more about the PSC's rate case process, visit:
PSC How Rates Are Changed.
PSC Utility Construction Regulation
In addition to regulating electric, gas, and water utilities in Wisconsin, the PSC is responsible for approving energy generation construction projects, which can be developed by utilities or merchant developers, and high-voltage transmission projects.
Depending on the size of the construction project, a utility or merchant developer must apply for and obtain either a Certificate of Public Convenience and Necessity (CPCN) or Certification of Authority (CA) from the Commission before construction can commence.
Occasionally, specific customers like data centers or other large energy users participate in generation or transmission construction application proceedings, but these customers do not file applications with the PSC to build data center facilities. Large facility developments in Wisconsin generally require a combination of local and state permits, but these permits are outside the scope of the PSC's regulatory authority.
To learn more about the PSC's construction application review process, visit:
PSC How Construction Projects Are Approved.
PSC Water Utility Regulation
The PSC regulates more than 575 drinking water utilities across the state of Wisconsin, including municipal and investor-owned water utilities. The PSC does not track or regulate the water consumption of individual residences or businesses. Similar to electric and gas utilities, water utilities must obtain PSC approval to change the rates they charge their customers or to construct new facilities. For example, if a new high-use customer like a data center is added to a water utility's service territory, and the addition requires the utility to seek new or modified rates/tariffs or to construct new facilities, the water utility would need to apply for and obtain Commission approval. To learn more about water regulation, visit:
PSC Water Regulation Topics.
Public Involvement
The PSC encourages public participation in its cases because the information gained from this engagement informs the record of evidence with valuable feedback and unique perspectives that help the Commission reach fair and reasonable decisions in the public interest. PSC proceedings offer a variety of public participation methods and opportunities. To learn more, visit:
PSC Public Participation.
Other Government Agencies:
Local Governments: local governments including counties, cities, villages, and towns play an important and significant role in permitting data centers proposed in their communities. Data center developments are subject to local zoning ordinances and project permitting rules. Contact your local elected officials to learn more.
Wisconsin Economic Development Corporation: is responsible for implementing the state's Data Center Sales and Use Tax Exemption.
Wisconsin Department of Natural Resources: conducts environmental analysis of proposed projects and requires applicants to obtain DNR permits and approvals related to wetlands, stormwater, and air emissions. The DNR also partners with the PSC on its review of energy generation and transmission construction project applications.
Wisconsin Department of Safety & Professional Services: reviews and approves building plans to ensure they comply with the Wisconsin Commercial Building Code.