Wisconsin Assembly Bill AB722

Wisconsin 2025-2026 Regular Session

• Introduced: 12/3/25
• Refer: 12/3/25
• Failed: 3/23/26

Caption

Large energy customer fees; electric utility very large customer class; a renewable resource tariff; building requirements for data centers; water usage by large customers; required pay rate on large-scale data center projects; and granting rule-making authority. (FE)

Impact

One notable aspect of AB722 is the introduction of a large energy customer fee, which necessitates that an annual fee be collected from each large energy customer, with half of the revenues funneled into a utility public benefits fund and the other half supporting the green innovation fund. The measures are designed to not only encourage renewable energy adoption but also to facilitate economic developments through the rapid growth of data centers, which are defined within the bill as facilities that handle significant electronic data processing operations. The regulations also promote transparency by requiring periodic reporting on energy consumption and fuel types used by these data centers.

Summary

Assembly Bill 722 aims to set forth regulations regarding energy customers, specifically targeting large energy consumers and data centers in Wisconsin. The bill lays down guidelines for how electric utilities must accommodate these large customers, ensuring that a significant percentage of the energy they use comes from renewable sources. It mandates that utilities create tariff structures, requiring participating customers to pay associated costs while providing them with energy credits for utilizing renewable resources. This approach aligns with Wisconsin's broader goals for increased sustainability and energy efficiency.

Contention

However, the bill is not without controversy. Some stakeholders argue that imposing stringent requirements on data centers, such as needing to meet specific building standards and using at least 70% renewable energy, could deter businesses from investing in Wisconsin. Additionally, the required prevailing wage for construction work on these facilities has raised concerns among some sectors about increased operational costs. Supporters of the bill assert that these conditions are necessary for environmental stewardship and long-term economic benefits, while opponents worry about the potential financial burdens these requirements could place on businesses looking to enter Wisconsin's market.