RAPID CITY, S.D. – June 21, 2022 – Black Hills Corp. (NYSE: BKH) today announced that its Wyoming electric utility, Cheyenne Light, Fuel and Power Company, doing business as Black Hills Energy, completed its first agreement for service under its Blockchain Interruptible Service Tariff.
Under the five-year agreement, Black Hills Energy will deliver up to 45 megawatts of electric service with an option to expand service up to 75 megawatts to a new customer in Cheyenne, Wyoming. The crypto mining facility will represent one of the largest bitcoin mining operations in the region, which is expected to be operational and purchasing energy in the fourth quarter of 2022.
Energy will be sourced through the electric energy market and delivered through Black Hills’ electric infrastructure. The customer will be responsible for costs related to service under the agreement, which will also benefit other Cheyenne customers. In addition, the load will be interruptible to prioritize the needs of our existing retail customers.
“We are pleased to deliver yet another innovative solution to support business and technology growth in Wyoming while benefiting other Cheyenne customers,” said Linn Evans, president and CEO of Black Hills Corp. “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.”
The Blockchain Interruptible Service Tariff was proposed by Black Hills and approved by the Wyoming Public Service Commission in 2019. The tariff was developed to attract new large electric loads related to blockchain and other industry growth with high energy demand. Attracting these large energy needs to Wyoming provides meaningful state and local benefits including additional property taxes, sales taxes, franchise fees, employment for construction and mobilization activities, and permanent management and operating positions.