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20 sats \ 3 replies \ @2big2fail 31 Mar 2022 \ on: Bitcoin Miners Flock to Kentucky Coal Towns | The BTC Times bitcoin
the statement "Kentucky State Representative Angie Hatton is hopeful that Blockware Solutions will be able to stabilize the region's steep electricity rates." makes no sense
miners do not decrease power prices as the high price is as a result of decreased production.
miners can provide revenue to areas with low costs ensuring that infrastructure stays current but unless there is a pre planned buildout of more generation there will be no cost reduction especially if they are mining on grid
Electric rates are determined from a number of factors, fixed costs, variable costs, profit margin, market demand, and more.
Selling the excess electricity to the Bitcoin mining ops provides revenue such that the organization won't seek to raise rates to cover their costs + profits (or would be denied if they were to attempt to seek an increase).
So yes, adding Bitcoin mining can essentially be a subsidy that either limits rate increases for the other customers, or (less likely) can actually lower their rates.
That's likely what she was inferring.
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