US utility signs first blockchain-interruptible tariff deal for miners

The Wyoming-based utility Black Hills Energy has, for the first time, reached an agreement to provide electricity to an unnamed mining company under the Blockchain Interruptible Service Tariff.

Under the agreement, Black Hills Energy will supply up to 45 MW of electricity for five years to a Cheyenne-based customer, with the possibility to increase capacity to 75 MW. Purchases are expected to begin by the end of the year after the facility comes online.

The supplier says that attracting more blockchain companies to the state would boost tax revenue and create jobs.

Black Hills Energy is a subsidiary of Cheyenne Light, Fuel and Power Company, which is part of the Black Hills corporation. The firm serves 1.2 million customers across eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming.

The utility approved the blockchain interruptible service tariff in June 2019. It allows meeting the needs of mining companies for a limited period without raising prices for retail customers.

Earlier in June, high temperatures in Texas led to record levels of electricity consumption and affected the operation of local Bitcoin miners.

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