LOUISVILLE, Ky. — The Kentucky Public Service Commission has approved the Retail Electric Service Agreement for TeraWulf’s Justified Data Campus in Hancock County. The agreement allows up to 482 megawatts of electric service for the campus.

Using average U.S. household electricity consumption data from the U.S. Energy Information Administration for 2022, 482 megawatts would be roughly comparable to the average electricity use of about 350,000 to 400,000 homes.

Residents of Lewisport voiced opposition to the data center during a public comment session at the end of July. The session focused on a retail electric service agreement that would allow TeraWulf, through its subsidiary Justified DataPower, to buy power from Big Rivers Electric Corp. and Kenergy for a planned facility at the former Century Aluminum site. Residents raised concerns about higher electric rates, noise, environmental impacts and what they described as limited local benefits.

On Aug. 21, the PSC ruled, “After consideration of the entire record, the Commission finds that the proposed RESA contains adequate protections for existing customers, appropriately allocates financial and operational risks, establishes rates that are fair, just and reasonable, and provides for adequate and reliable service.”

TeraWulf’s obligations include covering all market costs, power delivery, customer service and certain expenditures and large credit responsibilities. Additionally, the agreement incorporates negotiated demand surcharges and client fees, resulting in increased contributions to Big Rivers and Kenergy.

Under the agreement, TeraWulf would pay its own market and delivery costs, meaning the company would be responsible for the electricity it uses.

Paul Prager, chief executive officer of TeraWulf, said, “At Justified, we’re taking a former industrial site with existing transmission infrastructure and putting it back to productive use at scale. We’re paying the costs associated with our load, protecting existing ratepayers, and making a significant long-term investment in Kentucky. We believe that’s the right model for responsible data center development, and the Commission’s decision is an important validation of that approach.”

The Justified Data Campus is being built where the old Century Aluminum plant used to be. According to the release, it has access to about 482 megawatts of existing transmission capacity left from the former smelter.

During the public comment session, PSC staff and commissioners said the agency’s role was limited to deciding whether the proposed agreement would provide fair, just and reasonable rates and service. They said the commission does not have jurisdiction over water use, noise, siting or the broader merits of the data center itself.

The PSC said, “The proposed reuse of an existing industrial site, anticipated capital investment, employment and additional tax base provide further support for the public-interest benefits asserted in the record.”

The PSC’s approval allows Big Rivers and Kenergy to implement the RESA under its terms.