Could crypto miners raise your electricity bills? Idaho Power says yes. What to know

Crypto miners run powerful computers executing complex mathematical equations, often at all hours, to mine, or create, digital currencies.

ELECTRICITY A BIG COST FOR CRYPTO MINERS

Mike Louis, engineering program manager for the PUC, said electricity is a major cost for any crypto-mining operation.

“There is an incentive for them to chase the lowest-cost electricity,” Louis told the Idaho Statesman by phone. “And because they don’t have other infrastructure holding them to this location, typical of other customers, it places them in a class where there is a need to protect against stranded assets.”

To date, most crypto miners in the state are hobbyists, operating out of their basements or garages, according to Rodriguez. Those people would not be affected by the new customer class.

“It’s unlikely for a residential person to do enough mining to make these big impacts that could force us to build additional infrastructure,” Rodriguez said.

At the moment, Idaho Power doesn’t have any customers who would fall into the new customer class. While it has some customers crypto-mining under residential or small general-service schedules, he said, Idaho Power cannot tell how many. But the utility says it “has received interest from customers proposing approximately 2,000 MW of potential cryptocurrency mining operations.”

The utility says it has some of the lowest energy prices in the country, about 30% lower than the national average, with variations depending on customer class.

Idaho also has a minimal risk of natural disasters, which can disrupt data centers or other large buildings filled with servers, computers and other equipment.

“It’s viewed as a low-risk location to carry out these operations,” Rodriguez said. “It’s also a relatively low-cost energy location as compared to operating in California.”

Idaho Power is already experiencing an increase in demand thanks to substantial population growth over the last decade or so. Excessive heat and fire activity also puts a strain on the grid.

IDAHO POWER WOULD SHUT OFF CRYPTO MINING DURING PEAK DEMAND

One of two key parts of the utility’s request to the PUC is the ability to shut off crypto-mining operations during times of peak energy demand to avoid any shutoffs for Idaho Power’s remaining customer base. Heat waves are the best example of a time when its system is running near capacity, Rodriguez said.

“It’s something we’re keeping a close eye on,” he said.

The second key part is the authority to charge crypto miners a “marginal rate” for any extra electricity Idaho Power must buy or generate for them. Marginal rates are normally higher than base rates.

A report released Sept. 8, commissioned by the Biden administration, detailed the carbon footprint of digital assets. The report warned that crypto-related electricity usage could harm efforts to reduce greenhouse gas emissions.