What to do when your municipal electric utility is slammed by huge bills after the state electric grid failed to balance supply and demand? Bring in a new power-hungry customer to help pay off those bills. That’s what Denton, Texas, is doing. Now, the money it realizes from having Core Scientific as a customer will pay the town’s $7 million in annual debt service it has from the $140 million in debt Denton issued to cover the cost of power when the price of electricity from Electric Reliability Council of Texas, ERCOT, soared to $9,000 per kilowatt hour, said Tony Puente, general manager of Denton Municipal Electric. “We will get about $8 million net revenue from the utility that will offset that $7 million in debt service,” Puente said. Denton signed the agreement with Core Scientific in October. The company, which uses its facilities and technology for both hosted mining and self-mining of digital assets, is expected to start operations in March.
Source: The Bond Buyer
