Power cost allocation shapes Wyoming data center expansion
XLU•Wyoming has more than 5 GW of planned hyperscale data-center capacity, while utility rate cases and proposed cost-allocation protections could shape deployment economics and ratepayer exposure. Rocky Mountain Power seeks a $70.5 million annual rate increase, and Black Hills Power’s proposed settlement would reduce its request to $4.04 million from $5.12 million.
1. Rate cases and costs
Rocky Mountain Power is seeking a $70.5 million annual rate increase. Intervenors oppose spreading prospective data-center infrastructure costs across retail customers. Black Hills Power’s proposed September 2026 settlement reduced its requested annual increase from $5.12 million to $4.04 million.
2. Proposed protections
Proposed measures include assigning infrastructure costs directly to large customers, minimum billing commitments and long-term contracts to limit stranded-asset risks. Hyperscale campuses can take 18 to 24 months to build, compared with five to seven years for utility infrastructure, complicating capital recovery.
