WKYT Investigates: Kentucky Power says data centers could lower electric bills in eastern Kentucky
Kentucky Power says a planned TeraWulf hyperscale data center in Ashland could help stabilize or lower electric rates by covering a substantial share of the utility’s fixed costs. The story also examines Kentucky moratoriums on data center development and Gov. Andy Beshear’s new ratepayer protections and environmental requirements for future projects.
Kentucky Power says TeraWulf’s planned hyperscale data center in Ashland could eventually consume more than one gigawatt of electricity, adding a major customer to a service territory struggling with the decline of coal and the loss of electricity demand. Kentucky Power economic and business development director Amanda Clark said the project could help stabilize rates by covering fixed system costs that would otherwise require roughly 175,000 new residential customers.
The report also highlights concerns from Kentucky residents who fear data centers could increase utility bills. Gov. Andy Beshear’s executive order directs the Kentucky Public Service Commission to prevent utilities from recovering data center-related costs through higher rates and requires developers to submit energy plans to the Energy and Environment Cabinet. The order also addresses air quality, water use and quality, water supplies, wetlands, natural resources, taxes and community engagement, while several Kentucky communities have temporarily halted data center approvals and construction through moratoriums.