Ashland – October 12, 2026 -- Kentucky Power has finalized an amended agreement with TeraWulf Inc. that would double contracted electric demand at TeraWulf's Muskie Data campus in Grayson, Kentucky, from 500 megawatts (MW) to 1 gigawatt (GW). The deal includes $100 million in TeraWulf-funded winter bill credits for residential customers, pending approval by the Kentucky Public Service Commission.
TeraWulf funds $100 million in residential winter credits over 10 years
The credits would run over the first 10 years of the contract and begin in 2029. For a typical residential customer, they could amount to about $25 per month during the winter heating season.
Second 500-MW phase moves up from 2030 to 2029
The amended agreement advances delivery of the second 500-MW phase by one year. The acceleration is subject to Commission approval and Kentucky Power's construction schedule. The companies expect the campus expansion to generate infrastructure investment, construction activity, permanent jobs and new tax revenue for local communities.
TeraWulf covers financing costs of the 760-MW Big Sandy plant
In addition to paying all applicable service charges, TeraWulf has agreed to pay the estimated financing costs of Kentucky Power's planned 760-MW combined-cycle generation facility at Big Sandy. The arrangement is intended to keep the costs of serving the added demand from shifting to existing customers.
The agreement also includes collateral requirements and other financial protections for Kentucky Power customers.
Cindy Wiseman, president and chief operating officer of Kentucky Power, said the deal ensures that the customers driving new demand pay for it. TeraWulf Chairman and CEO Paul Prager said the 1 GW expansion and the 2029 phase two timeline position the company to meet strong customer demand.
Kentucky Power to file contract with regulators later this year
Kentucky Power plans to file the amended contract and seek related regulatory approvals later this year.