Council approves request from cryptomining company
Published 9:00 am Wednesday, October 13, 2021
At their meeting on Monday, the West Point City Council approved a request from EZ Blockchain, a cryptomining company, to provide power for potential locations of operation in West Point.
City Manager Ed Moon said at a previous meeting that the company was considering two locations adjacent to the city’s electrical substations for its cryptomining containers. He also said the city had worked with Electric Cities of Georgia to work on an agreement to provide the electric service to EZ Blockchain.
The contract between EZ Blockchain and the city will last for three years. City Attorney Alex Dixon said the contract will be renewed by mutual consent of the parties at least 90 days prior to termination.
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The contract specifies that the rate the company would pay is cost plus a 5% margin to the city. It also states that the company will provide a deposit equal to 60 days of usage. The only cost to the city will be making power ready for the company.
Walter West, senior vice president and chief operating officer of Electric Cities of Georgia, said at a previous meeting that cryptocurrency mining uses more electricity than all the countries on Earth except for seven. He said the high amount of electricity it uses is what makes it so attractive to Electric Cities of Georgia and MEAG cities in Georgia.
He said one of the sites in West Point would use about four megawatts, and the other would use about 10 megawatts.
In other business at the meeting, the council also approved a Forward Fund application submitted by the West Point Housing Authority.
“The funds will be used to make intersection improvements for the interests of the West Point Villages project that will provide new housing for the West Point Housing Authority along East 10th Street,” West Point Mayor Steve Tramell said.
A meeting document explains that the original West Point Village, LLC project was approved for a $250,000 Forward Fund Grant in 2014. The funds were intended to be used for intersection improvements to the intersection of 10th Street and O G Skinner Drive. Because the scope of the project and needed intersection improvements have changed, the West Point Housing Authority had to modify their application, requesting the same level of funding.
The council also decided to letter the water tank on 12th street with “The City of West Point.” The financial impact will be $10,000 to $20,000.
Additionally, the city agreed to let Kia have the water tank on Kia Parkway decorated with seasonal lights at no cost to the city. The lights will be installed in early November and removed in early January.