A controversial battle is unfolding in rural Stanton County, Nebraska, where landowners are clashing with the Nebraska Public Power District (NPPD) over its use of eminent domain. The utility is condemning land for a new transmission line, a project primarily driven by the escalating electricity demands of a local Bitcoin mining company, Jigowatt. This dispute highlights the tension between industrial expansion and property rights, as affected families feel their land and future plans are being unjustly seized for private gain.
Dream Homes Face Power Line Threat
Justin Kennedy, a landowner in rural Stanton County, had long envisioned building his retirement home on a cherished plot of family land. He had meticulously planned for this future, even planting a shelterbelt nearly two decades ago to protect his dream home from prairie winds. However, these plans were shattered when NPPD announced its intention to run a high-voltage transmission line directly through his property, sparking a fierce dispute over eminent domain.
NPPD’s Eminent Domain Justification
NPPD asserts that it resorts to eminent domain only as a last resort for essential projects, framing the new transmission line as crucial for overall grid reliability and resilience in the region. The utility’s General Counsel, John McClure, stated that the project will benefit all local customers, not just Jigowatt. McClure also claimed that Jigowatt’s high energy usage during off-peak hours would actually help stabilize demand and potentially reduce costs for all ratepayers, arguing for a broader public benefit.
Jigowatt’s Growing Energy Demands
At the heart of the dispute is Jigowatt, a Bitcoin mining company that already represents the largest electricity consumer in Stanton County. The company has a long-standing request to significantly increase its power usage, aiming to triple its current energy consumption. Meeting this demand necessitates the construction of a new 7.5-mile transmission line and associated electrical substation upgrades, a $20 million project primarily funded by Nebraska ratepayers.
Landowners Decry ‘Predatory’ Tactics
Affected landowners are vehemently criticizing NPPD’s approach to land acquisition, labeling it as predatory and questioning the use of eminent domain for a project seemingly benefiting a single private entity. Justin Kennedy explicitly stated his belief that eminent domain should be “absolutely off the table” if the primary beneficiary is a private company. Landowners also pointed to a double standard, citing NPPD’s above-appraised value land purchase from two of its own executives.
The Crypto Mining Model in Rural America
Jigowatt’s operation in Stanton County features 10 containers housing crypto mining computers, some rented to tenants. These operations require massive computing power and cheap energy, attracting miners to rural U.S. areas after China’s 2021 crypto mining ban. The U.S. Energy Information Administration estimated last year that crypto mining could account for up to 2.3% of all American electricity consumption, highlighting its significant energy footprint.
Community Disappointment and Noise Concerns
Initially, the community had hopes for a significant investment, envisioning an attractive modern building and local jobs. However, Jigowatt’s operation, installed in customized cargo containers with loud cooling fans, failed to meet these expectations and caused noise disturbances for neighbors. Justin Kennedy expressed feeling “deceived” by the outcome, stating that the mechanical hum from the facility has created an unbearable living situation for some residents, impacting their quality of life.
Legal Battle Over Property Rights
NPPD’s decision to pursue eminent domain against four holdout families, including the Kennedys and Wortmanns, has escalated into a legal battle. Landowners describe the acquisition process as lacking genuine negotiation, with every conversation including implicit threats of condemnation. They feel like “the little guy gets walked all over” when facing a seasoned utility attorney, highlighting concerns about fairness and due process for ordinary citizens against powerful entities.
Broader Debate on Eminent Domain and Public Good
The case in Stanton County has ignited a broader debate about the appropriate use of eminent domain. While traditionally intended for clear public benefit projects, its application to primarily serve a single, large private customer like a crypto miner is highly controversial. Experts question whether public utilities should build expensive infrastructure for industries that may not contribute significantly to the economic good of the nation, raising concerns about potential cost increases for all ratepayers.
