Kentucky PSC denies Ky Power discounted rate proposal for Cryptominer

The Kentucky Public Service Commission issued a ruling on August 28 that denied a discounted rate proposal to Ebon International, a miner of cryptocurrency. Kentucky Power had proposed to sell power to Ebon International at a reduced rate for up to 10 years for a facility planned in Louisa Ky that could use up to 250 MW of electricity per year. This discounted rate was being proposed even though Kentucky Power is asking for a proposed rate increase of approximately 18% for other customers and individuals.

During the PSC hearing, Kentucky Power acknowledged that it does not have enough power generating capacity to serve existing customers without buying on the open market. Opponents of the discounted rate proposal felt that the additional power demand and costs of open market purchases would ultimately be passed on to other customers, resulting in higher electricity bills. Other concerns by the opponents of the proposal include determining the true economic benefit of the planned facility and the environmental impacts of so much power usage.

The discounted rate proposal for Ebon International was opposed by numerous groups including Earthjustice, the Sierra Club, The Mountain Association, Kentuckians for the Commonwealth, the Kentucky Resources Council and Appalachian Citizens Law Center.

If you would like to review the full comments of the PSC ruling on this case, you may visit psc.ky.gov on the internet. On their website, click on Commission Records and then go to “Search all cases”. Enter case # 2022-00387 to access the final report.