Bitcoin Miners Consume 20% of Power, Says Kentucky Utility

Paducah Power, a public utility provider in Kentucky, reported that three Bitcoin mining companies are now purchasing nearly 20% of its electricity output—a figure projected to increase to 33% in 2025.

According to a local news report from West Kentucky on Tuesday, Paducah Power presented a financial audit to city commissioners, noting the significant role of Bitcoin mining in the city’s energy consumption and revenue growth.

The utility company highlighted that Bitcoin miners are “good customers” because they operate at peak load consistently while also offering flexibility to shut down during extreme weather conditions, helping balance electricity demand for residents.

In 2024, the three Bitcoin mining companies accounted for 4% of Paducah Power’s total electricity sales. However, Chief Financial Officer Doug Handley explained that these companies have been ramping up operations, now consuming nearly 20% of the city’s energy output in early 2025.

He projected that by the end of the year, Bitcoin miners could be purchasing approximately one-third of Paducah Power’s total supply.

Paducah Power also presented data showing that Bitcoin mining operations have helped reduce electricity rates for residential customers, contradicting initial concerns from city officials.

When Bitcoin mining companies first considered moving to Paducah, city commissioners feared that their high energy consumption would drive up prices for residents. However, energy experts advised that the increased revenue from miners could help maintain or even lower electricity rates—a prediction that appears to be holding.

The financial audit revealed that the average residential electricity rate declined by 3.18% over three years, from $0.157 per kilowatt-hour (kWh) in January 2022 to $0.152 per kWh in 2025.