Key Takeaways:
- The Kentucky Public Service Commission (PSC) is looking into two proposed contracts that would have given cryptocurrency miners cheaper power.
- In Kentucky, the cryptocurrency mining sector is expanding quickly. 20% of the nation’s total computing power for proof-of-work cryptocurrency mining is located in Kentucky.
The Kentucky government is investigating whether offering cheap electricity to cryptocurrency miners will lead to increased electricity costs for Kentucky residents. As per reports, the Kentucky Public Service Commission (PSC) has opened a thorough inquiry into two contracts that would offer new cryptocurrency mining companies discounted electricity rates.
The Kentucky Public Service Commission is starting official deliberations to look into the suggested contractual agreements in reaction to remarks made by advocates like the Kentucky Resources Council and Attorney General Daniel Cameron of Kentucky.
The cryptocurrency mining industry is rapidly expanding and is being talked about quite a lot lately. Recently, the European Union also drafted legislation limiting the bitcoin mining market and encouraging using proof-of-stake cryptocurrencies.
According to press reports, “One planned contract, between Kentucky Power and Ebon International, LLC, would provide the Ebon Facility, a 250 MW cryptocurrency mining operation in Louisa, KY, with reduced electricity rates.” This request comes after a related one that started an investigation into the 13 MW cryptocurrency mining facility Bitiki-KY in Waverly, KY. Kentucky has so far granted Bitki-KY a $250,000 tax credit.
It is significant to mention that Kentucky, the second-ranked US state after New York, is said to contribute 20% of the nation’s computer power used for proof-of-work mining activities.
According to speculation, Earthjustice collaborated with the Kentucky Resources Council to submit comments on behalf of a coalition of environmental organisations based in Kentucky and asked the PSC to look into the issue.
According to Earthjustice, mining cryptocurrencies is exceedingly and enormously powerful by design, and the group claimed that crypto-mining companies seldom offer job opportunities because mining operations are so highly automated.
Thomas Cmar, a senior attorney in Earthjustice’s Clean Energy Program, is optimistic that the Commission will eventually give contract terms like these with more oversight after recognising the hollow commitments these cryptocurrency mining companies make that they will profit local areas for what they are.
For Kentuckians to understand precisely what they would be paying for by subsidizing these establishments, this step is being taken as respective authorities move towards the forthcoming proceedings and discovery process.
