A new electric rate has been approved by Chelan County Public Utility District commissioners on Monday for customers with energy intense loads such as server farms and similar technology operations including bitcoin mining.
The new rate applies to server farms and similar technology operations with intense energy use of 250 kilowatt hours per square foot per year or more. The rate recognizes that high density loads impose costs different in type and magnitude than other commercial and industrial customers.
Effective Jan. 1, 2017, the rate includes a transition period of up to five years for existing high density load (HDL) customers who can show they’ve made substantial investment and meet other criteria. An upfront charge to offset the impacts from HDL customers on the District’s electric system capacity has been included.
The official announcement stated that the rate structure is expected to recover the fair and reasonable costs of serving these rapidly growing businesses.
Commissioner Dennis Bolz said collaboration and transparency were keys in reaching approval of the new rate. “There was a lot of individual and collective effort involved in bringing this proposal forward, and I think it’s a good product.”
Discussion of a new rate for energy intense customers came to the forefront in December 2014 when staff reported a remarkable increase in inquires for new service from high density and large load customers. Commissioners put the moratorium in place on Dec. 15, 2014, and revised the scope twice as more was learned about the impacts of energy intense load.
The current moratorium on accepting applications for service from energy intense loads will be reviewed by PUD commissioners on Oct. 3.
