On June 21, Cheyenne Light, Fuel and Power Company (CLFP), doing business as Black Hills Energy, announced it will soon begin serving its first customer under its Blockchain Interruptible Service Tariff, a new electric rate option to support the growing blockchain industry in Wyoming.
The customer, a crypto mining company, recently signed a five-year service agreement with Black Hills Energy for up to 45 megawatts (MW) of electric service with an option to expand service for up to 75 MW. The company will locate initial operations in Cheyenne. The crypto mining facility is set to begin operations in late 2022 and once operational, will be one of the largest bitcoin mining operations in the region, according to Black Hills Energy.
Under the terms of the Blockchain Interruptible Service Tariff, Black Hills Energy will purchase the customer’s energy through the wholesale electricity energy market using the company’s electric transmission infrastructure. The tariff also permits Black Hills Energy to interrupt the customer’s electric service if needed, during periods of peak electrical demand, to prioritize the electricity requirements of its existing CLFP customers.
“This first application of an innovative blockchain energy rate is a ‘win-win’ for our city, our state and the region,” said Betsey Hale, CEO of Cheyenne LEADS, the economic development organization for Cheyenne and Laramie County, Wyoming.
“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,” said Mark Stege, Black Hills Energy’s vice president of operations.
“With this new rate option, we can play an integral role in supporting Cheyenne’s business-friendly environment,” said Stege. “Large electric use customers such as blockchain and crypto mining facilities provide significant economic benefits in terms of property and sales taxes, new jobs and energy cost savings to our existing retail customers in the form of a bill credit.”
Undergrounding Distribution Lines
In other Black Hills Energy news, the utility said on June 22 that it will replace its overhead electric distribution lines in Rapid City’s famed Art Alley with underground infrastructure. The segment is part of a utility construction project that will transform five blocks of overhead utility lines. Work was set to begin in late June and is expected to last approximately six weeks.
“By removing aging infrastructure, we will strengthen the resiliency of the downtown power grid and improve the overall aesthetic of one of Rapid City’s most unique and beloved displays of public art,” said Bo Secrest, Black Hills Energy’s Rapid City operations manager.
When completed, Art Alley’s distribution power lines and telecommunication lines will be buried underground. Wall-mounted service lines to meters located in the alley will remain above ground.
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