Detailed Narrative
Data Center Growth and Capital Plan
WEC Energy Group is experiencing significant demand from large data center customers in its service territory. Microsoft's Pleasant Prairie site has its first facility operational, with a forecasted demand increase of 2.6 GW by 2030. Vantage Data Centers, developing for Oracle, is constructing facilities with an expected 1.3 GW demand over the next five years, potentially reaching 3.5 GW over time⏳. This growth underpins the company's $37.5 billion 5-year capital plan, with approximately 15% of assets dedicated to these large customers by 2030.
Regulatory Framework for Large Customers
The Public Service Commission of Wisconsin (PSCW) approved WEC's very large customer tariff (VLC), ensuring these customers pay their full share of costs and provide credit support. Oracle is actively working to update its financial security in line with PSCW requirements for its Port Washington project. Management views the VLC tariff as a strong framework for continued data center growth, providing transparency and protecting other ratepayers.
Rate Cases and Regulatory Progress
WEC has filed rate requests for forward-looking test years 2027 and 2028 in Wisconsin, with expected final orders by year-end and new rates effective January 2027. In Illinois, the company made progress on the Rider QIP and bad debt rider settlements, resolving 12 open dockets. A decision on the Illinois rate request, driven by the Peoples Gas pipe retirement program, is expected by year-end for test year 2027.
Financing Strategy and Equity Needs
The company issued $760 million in common equity in the first half of 2026, including $720 million via its ATM program. It expects to issue a total of $1.1 billion in common equity for the full year. For any incremental capital beyond the current plan, WEC anticipates funding with 50% equity content, leveraging its efficient ATM program and exploring options for faster cash accumulation through current returns on projects.
Political Environment and Data Center Pushback
Wisconsin's political landscape is "purple," with ongoing gubernatorial primaries. Management actively engages with both political parties to promote economic growth and reliable infrastructure. While some candidates have suggested data center moratoriums, WEC emphasizes the economic benefits, including $100 million in customer savings over two years from data center value, property taxes, and job creation, alongside addressing concerns about water usage with closed-loop systems.