TeraWulf Bitcoin Deal Brings Electric Credits to Kentucky Customers

Kentucky Power has finalized plans with TeraWulf, a bitcoin mining company, to significantly increase electric demand at its data campus in Grayson. Under the agreement, TeraWulf would double its current power usage. If approved by the Kentucky Public Service Commission, residential customers could receive credits on their winter bills starting in 2029.

Kentucky Power estimates that the average customer would receive around $25 per month in credits. These credits would apply for a decade, though the long-term impact on bills beyond that period remains uncertain. The deal is also tied to TeraWulf’s investment in expanding its data center, which the company says will create more construction jobs, permanent employment, and additional tax revenue for the area.

While the deal promises benefits for customers and the local economy, some details remain unresolved. It is unclear whether the agreement will affect electric rates outside of the winter credit periods. The Kentucky Public Service Commission still needs to approve the deal before it becomes final.