LETTER: Oracle, worth billions, pleads poverty to avoid safeguards

To Ozaukee Press:

On June 11, We Energies, Vantage Data Centers and Cloverleaf Infrastructure filed a petition with the Wisconsin Public Service Commission asking regulators to weaken the financial safeguards that the PSC inserted into the data center rate structure just this spring—safeguards explicitly designed to protect ordinary Wisconsin electricity customers.

The central beneficiary of this petition is Oracle Corporation (which will operate of the Port Washington data centers). Oracle just reported record fiscal year 2026 revenues of $67.4 billion—up 17% from the prior year—and its market capitalization currently stands at roughly $530 billion, making it one of the 25 largest companies on Earth.

Oracle’s vice president of infrastructure has filed an affidavit warning that the PSC’s existing rules could ultimately require the company to post a letter of credit exceeding $7 billion, at an annual carrying cost that could exceed $100 million. The affidavit characterized that annual cost as potentially “prohibitive.”

But the relevant number here is not the face amount of the letter of credit—it is the actual economic burden on Oracle, which is that $100 million annual fee. That sum represents roughly one-seventh of one percent of Oracle’s annual revenues, and less than two-hundredths of one percent of its market capitalization. This is not a company being crushed by an unreasonable regulatory burden. This is one of the wealthiest corporations on Earth seeking preferential treatment that no ordinary Wisconsin ratepayer would ever receive.

As the Sierra Club’s Wisconsin Chapter aptly observed, most Wisconsinites are well acquainted with passing a credit check and paying fees when they fall short, and it makes obvious sense to hold billionaire tech companies to the same standard.

The PSC’s collateral requirements exist for good reason. The Citizens Utility Board fought hard for these provisions to ensure that tech companies can either put up the money for costly energy infrastructure or demonstrate a credit rating strong enough that ratepayers are protected if the project goes south.

That is a reasonable and prudent standard. Oracle raised $43 billion in debt financing in fiscal year 2026 alone and plans to raise another $40 billion in debt and equity in 2027. Its debt-to-equity ratio recently hovered around 415%, while none of the other hyperscale data center companies topped 80%. The AI investment landscape is volatile. Wisconsin families and small businesses should not be left holding the bag if the bubble deflates.

The PSC showed wisdom when it strengthened ratepayer protections in April. It should reject this petition and hold the line.

Patti Plough

Fredonia