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Wednesday, February 1, 2023

Kentucky Looking Into Contracts Offering Cheaper Electricity

The Kentucky government is looking into whether providing crypto miners with subsidized electricity will result in higher electricity prices for Kentucky consumers. According to reports, the Kentucky Public Service Commission (PSC) has started a formal inquiry into two contracts that would grant new cryptocurrency mining firms discounted electricity rates.

Earthjustice, an environmental law organization, said in a statement on December 5 that the government agency would be attempting to ascertain whether supporting cryptocurrency mining businesses will result in higher electricity prices for Kentucky residents.

Kentucky Looking Into Cheaper Mining Electricity

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The two mining contracts that are being looked into involve mining companies Bitki-KY, which maintains a 13-megawatt plant in Waverly, Kentucky, and Ebon International LLC, which manages a 250-megawatt mining site in Louisa.

In contrast to the Bitki-KY, which has already been granted a $250,000 tax credit by the state as a result of the passage of a Kentucky tax break bill for nearby cryptocurrency miners, the contract intends to offer lower electricity prices to the Ebon Facility.

Cryptocurrency mining is “extremely and exponentially energy-intensive by design,” according to Earthjustice, and the facilities’ discounted rates “may result in increased electric bills for regular Kentuckians.” The group also asserted that because mining operations are so heavily automated, crypto-mining businesses hardly ever offer employment prospects.

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According to a report from CNBC on October 9, it has emerged as a hub for cryptocurrency mining businesses. The state now reportedly contributes 20% of the nation’s computer power for proof-of-work mining activities, ranking second among all U.S. states behind New York.

In contrast, the Bitcoin Mining Council recently released a report suggesting that Bitcoin could soon become a “zero-emission network” by “combusting stranded greenhouse gasses to mine BTC that would have otherwise been emitted into the atmosphere.” This is because many environmental groups want Bitcoin (BTC) and other proof-of-work blockchains to switch to proof-of-stake due to energy concerns.

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