- Each customer’s bill may be different, however, due to factors like demand charges.
- The state’s main power utility, Entergy, will determine whether or not clients are eligible.
In the face of mounting difficulties, one Arkansas energy company is offering a discounted rate to cryptocurrency miners. Even though the state of Texas already has among of the lowest energy rates in the United States, the Fortune 500 business Entergy, which specializes in delivering electric power to clients in the American South, is proposing a bulk discount for mining companies there.
Furthermore, the energy tax, which was first suggested earlier this year, is between $0.75 and a little over a cent per kilowatt-hour, according to a business spokesperson who talked with Arkansas Business.
Slight Relief During Sluggish Market
In comparison to the national average of $0.13 per kilowatt-hour, this is much less than what business clients in Arkansas pay. Each customer’s bill may be different, however, due to factors like demand charges and other fees the service provider must absorb (such as those associated with energy efficiency).
Moreover, the state’s main power utility, Entergy, will determine whether or not clients are eligible for the special rate depending on their power use and whether or not they are engaged in cryptocurrency mining. An initial payment equal to three months’ deposit and further security in the form of a surety bond or letter of credit is required to obtain the rate.
Arkansas has drawn numerous large mining companies due to its low power costs and inexpensive land. The crypto mining industry is struggling as the perfect combination of low Bitcoin prices and high energy costs hits at a time when Arkansas is experiencing growth.
