The Kentucky Public Service Commission (PSC) has reportedly opened a formal investigation into two proposed contracts that would offer discounted electricity prices to new crypto mining operations.
According to a December 5 statement of the environmental law group Earthjustice, the government department would seek to determine whether subsidizing crypto mining operations will increase electricity costs for Kentucky residents.
The two mining contracts under investigation include one between Kentucky Power and Ebon International LLC, which operates a 250-megawatt mining facility in Louisa, as well as mining company Bitki-KY, which operates a 13-megawatt facility in Waverly, Kentucky.
The contract proposes to provide discounted electricity rates to the Ebon Facility, while Bitki-KY has already received a $250,000 tax credit from the state of Kentucky after the approval of a Kentucky tax break bill for local crypto miners.
Earthjustice argued in its statement that crypto mining is โextremely and exponentially energy intensive by designโ and that discounted rates for installations โcould result in higher electricity bills for Kentuckians.โ
A senior attorney for the environmental group, Thomas Cmar, said he was "looking forward to the upcoming hearings and discovery process so that Kentuckians can know exactly what they would be paying to subsidize these facilities," adding:
"I hope the Commission sees the empty promises by these cryptocurrency mining companies that they will benefit local communities. [...] and give more scrutiny to contracts like these in the future.โ
โCryptocurrency mining is a largely unregulated and energy-intensive industry that could cost Kentuckians dearly every day,โ he added.
The group also claimed that crypto mining companies rarely create employment opportunities due to the highly automated nature of mining operations.
Lane Boldman, executive director of the environmental advocacy group Kentucky Conservation Committee, added that the burden of costs associated with building new crypto mining facilities "often falls on ordinary people" since "electricity bills of all others rise to cover costs.
Related: Eager to Work: Bitcoin's Switch to Proof of Stake Remains Unlikely
Kentucky has become a hotspot for crypto mining companies, now contributing 20% โโof the country's computing power for proof-of-work mining activities, which ranks second among all US states. USA after New York, according to CNBC on October 9. report.
But while many environmental groups want Bitcoin (BTC) and another proof-of-work blockchains to transition to proof-of-stake Due to energy concerns, the Bitcoin Mining Council recently released a report suggesting that Bitcoin could soon become a "zero emission network" by "stranded methane gas combustion to mine BTC that would otherwise have been emitted into the atmosphere.โ
Cointelegraph reached out to the PSC for confirmation and details behind the investigation, but did not receive an immediate response.
Earthjustice noted that it collaborated with the Kentucky Resource Council to submit comments on behalf of a broad coalition of Kentucky-based environmental groups and requested that the PSC investigate the matter.
Post navigation
Previous Post
FTC Examines โPossible Misconductโ in Crypto Ads
