Kentucky Power said TeraWulf will fund $100 million in winter bill credits for residential customers over the first 10 years.
- TeraWulf said contracted capacity at its Muskie Data Campus will increase from 500 MW to 1 GW.
- The second 500 MW phase is now expected to be delivered in 2029 instead of 2030, while the first phase is slated to begin ramping up in 2028.
- The agreement still requires Kentucky Public Service Commission approval.
TeraWulf (WULF) stock edged lower on Monday morning, snapping its two-day winning streak after the company said it has doubled the power it secured for its Muskie Data Campus in eastern Kentucky.
TeraWulf said it had entered into an expanded and restated electric service agreement with Kentucky Power, a unit of American Electric Power.
The deal boosts Muskie’s contracted capacity from 500 megawatts (MW) to 1 gigawatt (GW). It also advanced the planned delivery of the second 500-MW phase to 2029 from 2030.
Both changes are subject to approval by the Kentucky Public Service Commission and Kentucky Power’s construction schedule, the company said. The first 500 MW phase is slated to start ramping up in 2028.
WULF stock dipped over 4% in morning trade, and was among the top trending tickers on Stocktwits at the time of writing. Retail sentiment around the company improved to ‘bullish’ from the ‘neutral’ zone, while chatter stayed at ‘high’ levels over the past day.
What Customers Get
According to the company, Kentucky Power said the deal would provide its residential customers with $100 million in bill credits for winter over the first 10 years of the contract. The utility will be paid by TeraWulf. For a typical household, that’s about $25 per month in the winter heating season.
The estimated financing costs for Kentucky Power’s planned 760 MW combined-cycle gas plant at Big Sandy will also be paid by TeraWulf.
Kentucky Power said the structure keeps the cost of serving the added demand off existing customers. Later this year, the utility expects to file the amended contracts with regulators.
Why It Requires Approval
The agreement, however, still needs Kentucky Public Service Commission approval. The commission in August approved a separate Justified campus agreement which the company said protected existing customers under its terms.
Muskies’ revised agreement also requires review. The company said it acquired the Muskie site in May for phase development as an AI and high-performance computing (HPC) campus.
TeraWulf stock has gained over 30% so far this year and is up over 12% in the last 12 months.
Read also: Ethereum Logs Smallest Year-To-Date Loss Since January As Rally Runs On Thin Leverage
For updates and corrections, email newsroom[at]stocktwits[dot]com<