Grant PUD Creates New ‘Evolving Industry’ Rate Class To Address Deluge Of Cryptocurrency Miners

An influx of cryptocurrency firms looking to establish a foothold in North Central Washington has local utilities re-examining their commercial pay rates.

Grant County PUD commissioners unanimously agreed last week to create a new customer rate class for cryptocurrency miners. Commissioners said core customers – residential, irrigation and commercial – continue to be first in line for power. Under the new “Evolving Industry” rate class, cryptocurrency firms would pay a rate — yet to be determined — that commissioners said covers both the Grant PUD’s cost to provide their electricity and any elevated risks they pose to the utility’s other customers.

Similar to the pricing for current large industrial customers, the new policy requires these emerging businesses to pay more, so core customers continue to pay below-cost rates. Evolving Industry customers would cover extra costs if Grant PUD has to pay more to bring additional power resources into the county to serve their load.

Since summer 2017, Grant PUD has received an unprecedented 125 new service requests that total above 2,000 megawatts of electricity. THat’s more than three times the electricity needed to power all Grant County homes, farms, businesses and industry. About 75 percent of these requests are from cryptocurrency firms.

By July 1, the PUD plans to begin processing applications for traditional commercial and industrial customers, who have been waiting for electrical service since last fall while staff developed this new policy. The utility is expected to implement the new Evolving Industry rate class by August 1.