AUSTIN (KXAN) --- Virtual currency mining facilities within the state's power grid region have to register with the Public Utility Commission of Texas (PUCT). The facilities must provide information to the PUCT annually about the facility’s location, ownership, and demand for electricity.
The rule was passed by the 88th Texas Legislature and signed into law by Gov. Greg Abbott in 2023.
It is aimed at giving the PUCT and the Electric Reliability Council of Texas (ERCOT) a better awareness of the virtual currency miners operating around the state.
"It's an important first step to get their hands around the potential issues," said Dr. David Tuttle, a research associate and lecturer at the University of Texas Austin's Energy Institute.
Tuttle said these facilities can use a lot of energy. He noted how they can also quickly adjust their power consumption based on the wholesale price of electricity.
"What they could do is radically reduce their load at the right times, and then their measurement for their peak load would be very low, and they would get a very low allocation of cost," Tuttle said. "But the infrastructure cost would be still there to meet their peak load, and who would pay for it? Every other customer in ERCOT."
According to the Energy Information Administration, the electricity demand for virtual currency mining grew over the last several years across the country and state.
It estimated the electricity used from virtual currency miners each year could represent up to 2.3% of all electricity consumed in the U.S.
The administration said that's enough to power more than six million homes.
“To ensure the ERCOT grid is reliable and meets the electricity needs of all Texans, the PUCT and ERCOT need to know the location and power needs of virtual currency miners,” PUCT Chairman Thomas Gleeson said. “This is another example of the PUCT and ERCOT adapting to support a rapidly changing industrial landscape."
