MON AM News: Data center critics alarmed by ATC’s plans to add $2B+ in transmission infrastructure; Rehlko cites data center demand in announcing supply agreement

April 13, 2026

— The utility that builds many of Wisconsin’s power lines wants to add more than $2 billion in new transmission infrastructure to serve Wisconsin’s data centers, alarming data center critics.

American Transmission Company LLC has requested or received approval from the Public Service Commission to build between $2.63 billion and $2.98 billion in new transmission lines and substations.

That includes two pending projects before the PSC that would serve Microsoft and Vantage’s data centers in southeastern Wisconsin. Also included in that total are three already-approved projects serving Microsoft’s Mount Pleasant campus and Meta’s Beaver Dam data center set to cost at least $1.18 billion.

Intervenors in two tariff cases before the PSC have raised concern about who will pay for that new transmission infrastructure, pointing out that ATC’s typical cost-sharing structure would require other ratepayers to cover the cost of much of the initial construction of these facilities.

“The tariff has to be passed under a no-harm standard, and our view is saddling customers with transmission costs does harm them,” said Tom Content, executive director of the Citizens Utility Board.

We Energies, which will power the Microsoft and Vantage facilities, says its data center customers will pay $564 million over the next two years to fully cover their related transmission costs. But the utility has offered limited detail; Microsoft and Vantage have also declined to offer additional comment.

“What our customers should know is that all parties agree that customer rates will not be impacted by data centers,” Brendan Conway, director of media relations for We Energies and WPS parent WEC Energy Group, wrote in a Thursday email. “That is the commitment the data centers have made.”

Both We Energies and Alliant, which serves the Beaver Dam data center, maintain that other ratepayers will not be impacted by the addition of new data centers.

In August and September of last year, ATC submitted applications to the PSC for two new transmission projects. One of those proposals, which would install between 90 and 102 miles of new extra-high voltage cable in and around Ozaukee County, is set to cost between $1.36 billion and $1.64 billion alone.

The transmission utility already had three other transmission projects pending before state regulators from the prior year;: these were approved between May and November of 2025.

Between all five projects, ATC is planning to install hundreds of miles of high-voltage transmission and build up to nine new substations across 11 counties.

All five of the applications cite the need for new transmission capacity to serve what ATC called in its application for one Racine County project the “unprecedented” load additions created by new hyperscale data centers.

See the full story.

— Rehlko, an industrial energy systems manufacturer in Glendale, has announced a new supply agreement for additional gas engine capacity, to meet “accelerating demand” from data centers.

The company recently announced the agreement with the INNIO Group, which has a production site in Waukesha, securing 1.25 gigawatts over a three-year period laid out in the agreement. Of that amount, a “significant proportion” will be used to address demand from hyperscale and other data center operators.

Brian Melka, president and CEO of Rehlko, says the move “strengthens our ability to support customers making long‑term investments in data‑center infrastructure” as well as flexible power generation.

“Securing multi‑year supply enhances visibility and confidence in delivery at a time when demand is being driven by structural, rather than cyclical, market forces,” he said in a statement.

Last week’s announcement notes data centers’ explosive growth is driving demand for “dispatchable, resilient and flexible power systems” that can be paired with renewable generation.

It references the use of gas engine-based generation integrated with battery energy storage systems and hybrid systems to enable the coming growth in data centers and related infrastructure.

See the release.

— U.S. Sen. Tammy Baldwin is sounding the alarm about the ongoing bird flu outbreak, warning egg prices could spike without more direct action from the Trump administration.

The Madison Dem, in a recent letter to USDA Secretary Brooke Rollins, noted migrating wild birds are continuing to infect domestic poultry flocks across the country and in Wisconsin.

Between late February and early March of this year, Wisconsin had three bird flu outbreaks in large commercial poultry farms, collectively impacting more than 4.3 million egg-laying hens, according to figures from DATCP.

By comparison, the number of affected poultry from bird flu outbreaks throughout all of last year was about 3.6 million, with outbreaks happening between early April and early December. In 2024, that number was just over 73,000.

Baldwin argues the federal government has made no “meaningful progress” towards its bird flu vaccine response plan laid out in the USDA’s Five-Pronged Approach to Address Avian Flu, announced in February 2025.

Baldwin is urging the administration to finalize such a vaccine policy that maintains markets for U.S. farmers, saying it “must follow through with its promises” from last year. While the USDA in early 2025 announced it would put $100 million into HPAI research and vaccine development, Baldwin notes there’s been no movement to begin a vaccine pilot program.

“At the same time, USDA has spent roughly $2.5 billion compensating farmers for their extensive losses,” she wrote in the letter. “Payments for outbreak response snowball while the status quo continues. American farmers, taxpayers and consumers cannot continue to absorb these costs.”

Since early 2022, highly pathogenic avian influenza or HPAI has resulted in the loss of more than 200 million birds nationally, including 11.6 million in the state, according to figures from Baldwin’s office.

So far this year, bird flu in commercial egg-laying flocks has led to 15.2 million birds being depopulated through 23 outbreaks in five states, including Wisconsin. That includes 13 million in conventional caged systems and 2.2 million cage-free birds, according to a recent market overview from USDA.

Meanwhile, seasonal migration of wild birds is expected to lead to more cases this spring.

“These recent outbreaks could potentially repeat the alarming egg prices seen in 2025, which peaked at $6 per dozen,” Baldwin wrote in the letter, noting this risk comes amid already-high prices for U.S. consumers.

At the same time, the bird flu outbreak is impacting workers in Wisconsin, Baldwin’s letter notes. In March, 87 workers at two farms in the state were laid off after the flocks were depopulated, and are expected to be without work for up to seven months.

DATCP last month moved to suspend all poultry shows, exhibitions, swap meets and movement of poultry to other events across 20 southern Wisconsin counties, in hopes of preventing further spread of the disease.

See the full text of the letter.

— In the latest WisPolitics “Capitol Chats” podcast, public health consultant Melissa Moore argues Wisconsin’s “Wild West” market for intoxicating hemp has created a public safety issue for the state.

“When we talk about the impact that intoxicating hemp products specifically is having on Wisconsinites, that unregulated risk is really the first piece,” Moore said. “The part where they’re sold in many different locations, poorly labeled, untested, they could potentially be contaminated.”

This market is now in jeopardy due to a federal law signed last year that closes a “hemp loophole” that allowed the marijuana substitutes to be widely sold in Wisconsin.

Hemp lobbyist Phillip Scott told “Capitol Chats” last month that the law change could cause the hemp industry to implode. But he added it’s unclear whether the federal government has the resources or the will to enforce the hemp ban. He maintained state lawmakers needed to codify a legal avenue for the product.

“We still have the freedom to take that action at the state level, and I think it’s important that the state does look at what is going to be best for the communities,” Moore agreed.

She added that policymakers need to think about hemp in the same way they think about alcohol or tobacco.

“Consistency and regulation can really help build that trust, not only in the market that’s looking to sell it, to make sure that they’re selling a safe and regulated and restricted and tested product, but then also to protect our communities,” Moore said.

Check out the full episode.

— A WisPolitics-State Affairs luncheon on Wednesday will explore the question: Can R&D make up for a lack of a major military base, driving defense industry job growth in Wisconsin?

Unlike some of its Midwest neighbors and leading states like California, Virginia and Texas, Wisconsin has no major military base to fuel defense-related jobs.

But advocates say research and industry cooperation can boost the Badger State’s estimated 16,000 defense jobs — a stable but relatively modest number compared to even Ohio, which benefits from Wright-Patterson Air Force Base near Dayton.

The free event is being held at the UWM School of Continuing Education in Milwaukee, with registration starting at 11:30 a.m.

See more event details and register here.

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