PORT WASHINGTON, Wis. — Oracle has filed a lawsuit against Wisconsin's Public Service Commission, challenging tariffs the agency imposed on very large electricity customers — a policy designed to shield average ratepayers from financial risk if a major data center were to fail.
The lawsuit centers on Oracle's data center in Port Washington, part of a $15 billion investment into the city's economy.
The PSC added the tariffs in April, targeting so-called "very large customers," or VLCs, that do not carry a sufficiently high credit rating. Oracle holds a BBB rating, and the company argues the subsequent financial requirements could amount to more than $100 million annually.
"Wisconsin customers should not pay a single cent to subsidize the service of data centers or very large customers. Not now and not decades from now," Commissioner Kristy Nieto said at the April meeting.
Watch: Port Washington neighbors push back on Oracle lawsuit over data center tariffs for large customers
Oracle declined to comment to TMJ4 directly but argued in the lawsuit that the tariffs will cause "significant adverse impacts" on the company and other VLCs.
Oracle is asking an Ozaukee County judge to force the PSC to amend its decision, contending the agency exceeded its authority by imposing the tariffs.
Port Washington neighbor Michelle Gauthier said companies of Oracle's scale should be prepared for exactly these kinds of financial obligations.
"They're trying to say they can't afford a $100 million line of credit? That's ridiculous," Gauthier said. "I know it's not a planned expense, but unplanned expenses come up in the scope of a project this size."
Lifelong resident Dan Large agreed with the PSC's decision to add these tariffs to help protect ratepayers from future risk.
"I'd like to see that bond," Large said. "I agree with that because I don't want that, in a few years, if technology gets better, all of a sudden, there that thing sits. Then what do we have?"
The case remains pending in Ozaukee County with no future court dates currently listed.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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