PSC to hold public hearing on TeraWulf data center power agreement
By Lane Tongate
Hancock County residents will soon have an opportunity to weigh in on one of the most closely watched projects in the county’s history as the Kentucky Public Service Commission (PSC) prepares to hold a public hearing on the proposed electric service agreement for the planned TeraWulf data center.
The meeting will focus on the proposed contract between Big Rivers Electric Corporation, Kenergy, and Justified DataPower LLC, a subsidiary of TeraWulf Inc. While many residents have voiced opinions about the proposed AI data center itself, the PSC’s role in this case is to determine whether the electric service agreement should be approved.
The Hancock Clarion spoke with Sheri Mahan, Executive Advisor for the Kentucky Public Service Commission, to learn more about what residents can expect during the hearing. Mahan said the purpose of the meeting is to give the public an opportunity to comment on the proposed electric service agreement. While the commission is willing to hear residents’ concerns about the data center, the hearing itself centers on the proposed contract and whether it serves the public interest.
Each speaker will be given an opportunity to address the commission, with speaking times expected to range from three to seven minutes depending on the number of people who wish to speak. Speakers are asked to remain respectful and civil throughout the hearing. Residents who cannot attend in person may also submit written comments online. Those comments become part of the official case record and will be reviewed by the commissioners before a decision is made.
Mahan said the hearing is intended to gather public comments, not answer questions. The commission will not be responding to questions during the meeting, and it is unknown whether representatives of the companies involved will answer questions if they attend.
For residents planning to speak, understanding the proposed contract may be just as important as deciding whether to attend.
The agreement outlines how electricity would be supplied to the proposed facility, who would pay for the service, what financial protection is included if payments are missed, how reliability of the electric grid would be maintained, and how service could be handled during emergencies.
TeraWulf estimates the project will bring significant economic activity to the region, including billions in capital investment, hundreds of construction jobs, and dozens of permanent positions once the facility is operational. The company also projects millions in annual tax contributions, though those amounts depend on market conditions.
Residents may submit comments at any time at https://psc.ky.gov/Case/SearchCasesPublicComments, by emailing [email protected], or by mailing the PSC at 211 Sower Boulevard, Frankfort, KY 40601. All comments should include the commenter’s name, address, and the case number, 2026‑00115.
The meeting will be held on Monday, July 27, 2026, at 5 p.m. Central Time at the Hancock County Highschool Gymnasium at 80 KY-271 South, Lewisport, KY 42351.
Big Rivers Electric Corporation is a member‑owned, not‑for‑profit generation and transmission cooperative headquartered in Owensboro, Kentucky. They provide wholesale electric power and services to three distribution cooperative members across 22 counties in Western Kentucky. The member cooperatives are Jackson Purchase Energy Cooperative, Kenergy Corporation, and Meade County Rural Electric Cooperative.
The Kentucky Public Service Commission (PSC) is an independent agency attached for administrative purposes to the Energy and Environment Cabinet. It regulates more than 1,100 gas, water, sewer, electric, and telecommunication utilities operating in Kentucky and has approximately 90 employees.
What residents may want to know about the agreement
The proposed electric service agreement includes several provisions that may be important to Hancock County residents as they consider whether the contract serves the public interest.
One of the most notable sections deals with how electric service would be handled during emergencies. According to the agreement, interruptible industrial customers would be curtailed first. After that, the data center could be curtailed before any non‑interruptible residential or commercial customers if the grid reaches a Level 3 Energy Emergency Alert. Big Rivers may also reduce the facility’s load to resolve voltage issues or protect system integrity.
The agreement requires Justified Data Power to pay for all electricity it uses, along with transmission, capacity, congestion, uplift, regulatory, and other market‑related costs. The company must also provide financial guarantees, including credit support equal to two times its highest monthly bill and either prepayment or collateral covering its annual capacity obligation. These measures are intended to protect Big Rivers and Kenergy members from unpaid industrial bills.
The contract reserves up to 482 megawatts of electric capacity for the project and includes a six‑year “take or pay” requirement, meaning the company must pay for capacity whether it uses it or not. The agreement also allows Big Rivers to bill the company daily during periods of extreme market volatility, requiring payment the next business day. The initial term of the agreement is 15 years.
Residents who plan to speak at the PSC hearing may find it helpful to review these sections, as they relate directly to the commission’s decision on whether the agreement should be approved.
You can find the proposed electric agreement at https://psc.ky.gov/pscscf/2026%20cases/2026-00115//20260414_Big%20Rivers%20Electric%20Corporation%20Contract%20Filing.pdf .
