Kentucky Power is in a power supply quandary. The utility may not be able to provide for residential customers and a proposed crypto facility by 2026. Kentucky Power Vice President, Brian West, acknowledged this in a recent hearing, according to lpm. Chinese firm Ebon Internation...
Kentucky Power is in a power supply quandary. The utility may not be able to provide for residential customers and a proposed crypto facility by 2026. Kentucky Power Vice President, Brian West, acknowledged this in a recent hearing, according to lpm.
Chinese firm Ebon International plans to build a $250M cryptomining complex in eastern Kentucky. It has leased 55 acres from Kentucky Power. The terms of the electric supply deal are confidential but could lead to higher bills for customers.
In December, Kentucky Power faced a power shortfall. As a result, it had to buy electricity at about 100 times the normal rate. This scenario could repeat if the utility's power supply falls short again.
Kentucky Power is now proposing an 18% rate increase on residential customers. It attributes the rate hike to natural disasters and population loss.
However, West points out potential benefits of Ebon's proposal. He claims it would stimulate $96M in economic development in its first year. The annual contribution would then be about $27M. The facility would also create about 100 jobs with salaries up to $76,000.
Opponents question these claims. Attorney Michael Kurtz suggests most jobs would pay $18 or less. Doubts also loom over the ability to sue Ebon's parent company in case of a dispute.
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