Kentucky Public Service Commission Rejects Crypto Mining Contracts For Electric Discounts

Greenpeace opposes bitcoin mining in the US. (photo: twitter @greenpeaceusa)

The Kentucky state Public Service Commission has rejected a proposed contract that will allow a crypto mining company to get electricity rates at a price cut from an electricity supply company.

In an order issued on August 28, the commission rejected a contract between Ebon International and Kentucky Power Company involving an investment of USD 50 million (IDR 755.3 billion) for crypto mining facilities in the city ofie. According to the filing, Ebon plans to carry out a 100 megawatt mining operation (MW) until 2024, then increase the load to 250 MW.

Details of the proposed contracts, some of which were removed, include the Kentucky Power's offer of discount rates to Ebon for 10 years. The Commission announced in December 2022 that it plans to review the deal between Ebon and Kentucky Power.

Environmental groups such as Earthjustice and Greenpeace welcome the commission's decision as a win for average energy consumers in Kentucky. Joshua Archer, the leader of the Bitcoin campaign for Greenpeace USA, claims that providing crypto mining companies with incentives to operate in the state will charge taxpayers and contribute to climate change.

The state of Kentucky is one of the major Bitcoin mining centers in the United States, along with Texas, Georgia, and New York.

Environmental organizations in these areas have pushed restrictions and bans on crypto mining, resulting in New York certifying a proof-of-work moratorium into law in November 2022, and a law that abolishes incentives for miners to pass through the Texas Senate in April.