As new types of electric loads emerge, utilities are examining how to adjust everything from connection costs to power supply and transmission charges to best accommodate new customers and the demand. An increasing number of public power utilities have received inquiries from cryptocurrency miners or cannabis grow facilities on the cost to provide electricity. In addition to the increased demand, electric load from such facilities raise considerations for utilities, including legal questions, customer stability, and community perception.
This report reviews considerations for establishing new rates, characteristics of cryptocurrency mining and cannabis grow facilities, and the potential benefits and challenges of adding these types of customers to a utility's service area. The report also includes snapshots from what six public power entities have learned accommodating these new types of load and tips for other utilities weighing options for such customers.
The American Public Power Association enlisted Utility Financial Solutions, LLC to develop this report as part of the Moving Public Power Forward strategic initiative.