Publicly-Traded Utility Company Inks Deal to Power Bitcoin Mining in Wyoming
A South Dakota-based public utility company, Black Hills Corp., has inked a deal through its Wyoming subsidiary, Black Hills Energy, to provide power to a bitcoin mining operation in Cheyenne, Wyo. for at least five years.
The agreement is the company’s first agreement for service under its Blockchain Interruptible Service tariff, which it began seeking in 2018. The tariff was approved by the Wyoming Public Service Commission in 2019.
Under terms of the tariff, customers who are able to have power disrupted at the utility company’s discretion will receive a $2 credit adjustment per kilowatt hour – an agreement similar to the relationship between Texas-based crypto miners and the Electric Reliability Council of Texas (ERCOT).
Black Hills Energy will deliver up to 75 megawatts of electricity to the mining operation, which, when powered on, will be one of the largest mining operations in Wyoming, according to a press release for the company.
“We are pleased to deliver yet another innovative solution to support business and technology growth in Wyoming while benefiting other Cheyenne customers,” said Linn Evans, president and CEO of Black Hills Corp., in a statement.
“We are excited to serve this new type of customer and to explore the benefits we can provide to other flexible load customers over the longer term,” Evans added.
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