Black Hills Energy announced five-year agreement with crypto mining company under Wyoming Blockchain Interruptible Service Tariff
In support of the growing blockchain industry, Black Hills Energy (also known as Cheyenne Light, Fuel and Power Company) announced this week that it will serve its first customer under a new electric rate option known as the Blockchain Interruptible Service Tariff.
The first customer will be an as-yet-unnamed crypto mining company, with which Black Hills signed a five-year service agreement for up to 45 MW of electric service. It also came with an option to expand service for up to 75 MW. This is dependent on the crypto mining facility going operational in Cheyenne, Wyo., in the fourth quarter of 2022, at which point it will dedicate itself to bitcoin mining.
“We are pleased to deliver yet another innovative solution to support business and technology growth in Wyoming while benefiting other Cheyenne customers,” Mark Stege, Black Hills Energy’s vice president of operations, said. “This agreement is the culmination of Wyoming’s enabling legislation, our unique customer-focused Blockchain Interruptible Service Tariff, and our team’s business development efforts. 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.”
Through the Blockchain Interruptible Service Tariff, Black Hills Energy will source energy for the crypto mining operation through the wholesale electricity energy market and its own electric transmission infrastructure. During periods of peak electric demand, Black Hills will have the authority to interrupt the customer’s service if needed to prioritize electricity requirements among existing customers.
“With this new rate option, we can play an integral role in supporting Cheyenne’s business-friendly environment,” Stege said. “Large electric use customers such as blockchain and crypto mining facilities provide significant economic benefits in terms of property and sales taxes, new jobs, and energy cost savings to our existing retail customers in the form of a bill credit.”
