With the aim of attracting Bitcoin miners to the region, Black Hills Energy today announced that it has completed its first agreement to power cryptocurrency mining facilities under the Blockchain Interruptible Service Tariff in Wyoming.
According to the company, the unidentified facility is one of the largest Bitcoin mining businesses in the region and will be operational by the end of the year to purchase energy.
Wyoming power companies Cheyenne Light, Fuel and Power Company, d / b / a Black Hills Energy have completed their first contract for services under the Blockchain Interruptible Service Tariff. https://t.co/WIFfGEYq06
“We are excited to explore the benefits of servicing this new type of customer and serving other flexible load customers in the long run,” said Linn Evans, CEO of Black Hills Corp. in a statement. increase.
According to the company, by attracting blockchain companies with high energy demand, Wyoming can get some economic benefits such as property tax, sales tax and long-term employment.
Black Hills Energy is a subsidiary of Cheyenne Light, Fuel, and Power Company, which is part of the Rapid City of the Black Hills Corporation based in South Dakota. The company serves 1.2 million customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming.
Energy suppliers first proposed blockchain interruptable service charges to the Wyoming State Public Services Commission in October 2018, state’s “existing charges are safe, reliable and affordable for existing retail customers. It’s not enough to attract the blockchain business while continuing to provide services. “
The tariff was approved in June 2019 to attract new industries with high energy demand over a limited period of time, especially blockchain companies.
“By providing blockchain interruptable service options, we can meet the high energy demands of the blockchain industry without adding cost to existing retail customers,” said the company’s vice president at the time. One Shirley Welte said.
Under the agreement, Black Hills Energy will provide up to 45 MW of electrical service and offer new customers in Cheyenne, Wyoming the option to extend up to 75 MW of service for five years.
Bitcoin mining is a hotly debated topic in recent years because of the amount of power needed to support the network. High energy usage limits the profitability of the mining industry and has a negative impact on the environment. According to the Cambridge Bitcoin Power Consumption Index, if the Bitcoin network is a country, it ranks 34th in the world in terms of annual power usage.
Environmental issues related to Bitcoin mining have led states like New York to consider banning this practice. Organizations, including the Wikimedia Foundation and Mozilla, have stopped accepting Bitcoin donations this year because of their environmental impact.
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