Kentucky Power, Terawulf Agreed to Winter Bill Credits

A new energy facility project in Boyd County will provide $100 million in credits to Kentucky Power customers.

Updated on Oct. 6, 2026 in Data Centers

Isometric editorial illustration of industrial power transmission towers and cables against a neutral background, representing regional energy infrastructure. — Kentucky Power and Terawulf have finalized a $100 million agreement to provide winter energy bill credits to customers, pending regulatory approval from state officials. AI Illustration. Upload story photo >

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Kentucky Power and Terawulf have finalized an agreement to provide $100 million in winter energy bill credits to local customers. The initiative is linked to Terawulf's ongoing construction of a new 760-megawatt power generation facility in Boyd County.

Why it matters

The deal aims to directly assist Kentucky residents with the financial burden of winter energy costs. By tying the credits to the development of the Grayson Data Center infrastructure, the agreement leverages industrial expansion to provide consumer relief.

The new facility adds 760 megawatts of generation capacity, which is expected to boost the total output of the Grayson Data Center to 1 gigawatt. This significant infrastructure expansion is the foundation for the upcoming credit program.

The players

Kentucky Power

This is an electric utility company that provides power to customers across parts of eastern Kentucky.

Terawulf

This is a digital infrastructure company that develops and operates power-intensive data center facilities.

Kentucky Public Service Commission

This state regulatory body is responsible for overseeing utility companies and approving rate or agreement changes in Kentucky.

The details

Terawulf will fund the $100 million in bill credits for Kentucky Power customers as part of the deal. The agreement depends on formal approval from the Kentucky Public Service Commission to move forward.

Customers are expected to start receiving $25 in monthly energy bill savings in 2029.

The Tech Race

This project reflects a broader trend of data center operators investing directly in power generation to meet massive electricity demands. As the Grayson Data Center expands its capacity toward 1 gigawatt, the deal positions the firm to integrate more effectively into the regional grid.

Eligible customers can expect to see their monthly energy bills reduced by $25 starting in 2029. These savings are contingent on the regulatory approval process concluding successfully.

The takeaway

Large-scale infrastructure projects are increasingly being used as vehicles for localized consumer financial relief. Residents should monitor updates from the commission to ensure the projected savings remain on track for 2029.