CHEYENNE, Wyo. — Black Hills Energy announced Tuesday that it will serve its first customer for its new electric rate option for blockchain in Wyoming.
Cheyenne Light, Fuel and Power Company/Black Hills Energy’s Blockchain Interruptible Service Tariff recently signed a five-year service agreement with a crypto mining company for up to 45 megawatts of electric service, with a possible expansion up to 75 megawatts, a Black Hills Energy news release said. The company will begin operating in Cheyenne at the North Range Business Park, and, come fourth quarter, the crypto mining facility will be one of the largest bitcoin mining operations in the region, the release said.
“We are pleased to deliver yet another innovative solution to support business and technology growth in Wyoming while benefiting other Cheyenne customers,” Black Hills Energy Vice President of Operations Mark Stege said in the release. “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.”
With the tariff, Black Hills Energy will economically source the crypto mining company’s energy requirements through the wholesale electricity energy market. Black Hills Energy can interrupt the customer’s electric service if needed during periods of peak electrical demand to prioritize existing customers’ electricity requirements.
“This first application of an innovative blockchain energy rate is a ‘win-win’ for our city, our state and the region,” said Betsey Hale, the CEO of Cheyenne LEADS, an economic development organization for Cheyenne and Laramie County. “Together, with our energy partner Black Hills Energy, we are strengthening and thoughtfully growing our local economy by attracting exciting new businesses and well-paying jobs.”
Stege said blockchain and crypto mining facilities benefit the economy through property and sales taxes, new jobs and energy cost savings, through a bill credit, for Black Hills Energy’s retail customers.