China-based company Ebon International will not be getting discounted energy prices for its proposed cryptomining facility in eastern Kentucky, the state's regulators announced.
The Public Service Commission is also expected to issue a decision this month on rate discounts for another cryptomining facility in Hatfield.
Thom Cmar, senior attorney for the environmental law firm Earthjustice, explained the special contract Ebon and Kentucky Power lobbied for would have given the company millions of dollars in subsidies. The problem, he said, is cryptomining is energy intensive, strains electric grids and would have likely resulted in rate increases passed on to residents.
"The Kentucky Public Service Commission just thought this was too risky of a contract, at a time when Kentucky Power itself has had trouble serving its existing customers," Cmar noted.
Under state law, utilities are allowed to offer special rates as an incentive for businesses. Supporters argued energy discounts help attract companies to bring jobs and other economic benefits to the utility's service area.
But Cmar countered cryptomining is a boom-and-bust industry, with no track record of providing good-paying jobs for the long haul.
"These facilities are potentially 'here today, gone tomorrow,' as it's entirely dependent on the price of these international cryptocurrency markets for Bitcoin and other cryptocurrencies," Cmar stressed.
Cmar added advocacy groups have been urging Kentucky utilities to double down on the availability of federal funding to support renewable energy development throughout the state.
"We're talking at a time when Kentucky Power has proposed a massive new rate increase on its residential customers," Cmar pointed out. "The reason for that is because they've had trouble planning around a transition away from coal."
The Infrastructure Investment and Jobs Act and the Inflation Reduction Act included billions of dollars in tax credits, loans, grants and other financial assistance to state utilities for clean-energy initiatives.
get more stories like this via email
The latest "Speak Up MO" report reveals the economic struggles facing Missourians, adding to earlier findings about community concerns and the challenge of accessing affordable health care.
Although 59% feel financially comfortable, many say they can't save. Around one in four people couldn't afford food at least once in the past year, and nearly 10% faced possible eviction.
This hardship hits people of color, those with disabilities, and households earning under $50,000 per year the hardest.
Sheldon Weisgrau, vice president of health policy and advocacy at from the Missouri Foundation of Health, highlighted the report's overall message.
"What's really interesting, especially in the wake of the election we just had, in that folks are satisfied with where they are," said Weisgrau, "but have a feeling that things are heading in the wrong direction and that their neighbors are not doing so well."
Although the report identified the cost of living as the state's biggest challenge, it found Missourians remain moderately optimistic about their local economy.
Another key part of the report asked people whether the problem was having enough jobs overall, or having enough well-paying jobs.
Weisgrau noted most respondents pointed to the lack of well-paying jobs as the bigger problem.
"We saw that reflected in Missouri in the vote on Proposition A," said Weisgrau, "which voted to raise the minimum wage and mandate some paid sick leave for workers."
The report also highlights how financial insecurity seriously impacts the mental and physical well-being of Missourians, with one participant mentioning financial security reduces stress and frustration.
Disclosure: Missouri Foundation for Health contributes to our fund for reporting on Gun Violence Prevention, Health Issues, Philanthropy, Reproductive Health. If you would like to help support news in the public interest,
click here.
get more stories like this via email
A new survey of public company audit firms reveals businesses are concerned the upcoming election could affect their financial performance.
The Center for Audit Quality found more than 60% of roughly 1,200 audit partners surveyed worry about potential disruptions.
Julie Bell Lindsay, CEO of the center, said few companies are adjusting their business strategies.
"It suggests that while businesses expect some market turbulence and some uncertainty, they feel equipped to navigate through that," Lindsay explained.
Delta Air Lines recently said election-related uncertainty would affect its fourth-quarter revenue as consumers hold off on discretionary spending. Lindsay added geopolitical concerns also remain a top risk factor for businesses, as conflicts in Ukraine and the Middle East continue to affect the global economy.
Despite ongoing resilience, audit partners' outlook for the economy over the next year is only neutral, with most believing a recession is likely on the horizon. Lindsay noted audit partners are watching for potential indicators, including recent federal rate cuts, a possible government shutdown and a fluctuating labor market.
"They also continue to see that inflation could be an ongoing concern over the next twelve months," Lindsay reported. "I will say that the audit partners in our surveys have been pretty accurately predicting what inflation is going to do."
Lindsay emphasized top priorities for businesses in 2025 remain cost management, improved financial performance and growth. She said labor shortages are no longer a priority among economic risks as employers seek to upskill workers and increase compensation. Still, layoffs and decreasing workplace flexibility remain top strategies for companies to improve their bottom line.
get more stories like this via email
Despite Indiana's recent high-profile business deals, the state's economic fundamentals are lagging, with declining income and education levels posing significant challenges.
Experts argue deeper investments in education and infrastructure are needed for sustainable growth.
Michael Hicks, director of the Center for Business and Economic Research at Ball State University, noted some troubling figures.
"The share of adults with a college degree relative to the country having slipped," Hicks noted. "We see our per capita income relative to the country has slipped substantially, two percentage points, which is sort of a shocking three-decade change in two decades."
Although state officials pointed to low unemployment and rising capital investments as proof of success, Hicks contended without a focus on education and infrastructure, Indiana's long-term economic outlook remains uncertain.
State officials highlighted new projects such as a $3.2 million investment in Kokomo by Stellantis and Samsung SD designed to expand electric vehicle battery manufacturing operations in Indiana as signs of progress. However, Hicks warned the announcements do not address deeper economic issues.
"The numbers they're sharing are just measurements that they have working through IEDC (the Indiana Economic Development Corporation)," Hicks observed. "It has nothing to do with the actual amount of capital that's flowing into the state. That's lower than it has been in most years. So, there's nothing fabulous happening now that is anything other than a press release."
Hicks believes Indiana should prioritize education, environmental policies and regulatory improvements to create sustainable growth.
get more stories like this via email