**Grid Harmony with Troy Cross and Bitcoin Bassload**
Troy Cross and Bitcoin Bassload
Treble + Bass = Energy Grid Harmony
In this electrifying episode of BitBuyBit, Max and Jon speak with energy market expert and Pleb Miner Mafia Capo, Bitcoin Bassload (https://twitter.com/bitcoinbassload?s=21&t=lp6OHvwcaToR_1K2tEckFQ) as well as Philosopher and Bitcoin enthusiast Troy Cross (https://twitter.com/thetrocro?s=21&t=lp6OHvwcaToR_1K2tEckFQ) from the Bitcoin Policy Institute (https://www.btcpolicy.org/authors/troy-cross).
The relationship between Bitcoin mining and the American energy industry is complex, nuanced, wrought with acronyms, oversight, and regulation. The purpose of this conversation is to find where we agree and disagree on the relationship between Bitcoin mining and the energy industry and what we as Pleb Miners can do when our energy is focused and pointed in the same direction. Troy and Bassload come from different perspectives when looking at the relationship between Bitcoin mining and energy, but their hearts and minds are focused on making sure that Bitcoin wins.
In this discussion Bassload defines terms like the Federal Energy Regulatory Commission (FERC), Regional Transmission Organizations (RTO), and Independent Systems Operators (ISO) and explains how regulation and government policy steer energy markets. He discusses the Physical Grid versus Policy Grid, balancing authorities, generation fleet mix, and Meredith Angwin’s fatal trifecta for the grid: over reliance on renewables, backing up the renewables with just in time resources, and overdependence on neighbors. Bassload offers advice on creating relationships with energy providers: 1. Print the load 2. Pay an invoice. Bitcoin Bassload’s Energy Market Inflows can be found on his Substack (https://bitcoinbassload.substack.com/) in which he puts out frequent updates.
Troy discusses the unique characteristics of Bitcoin mining and its relationship with energy, particularly in the context of environmentalism and regulatory arbitrage. He highlights that Bitcoin's decentralized nature and algorithmically fixed production makes it resistant to local regulations and taxes. His point in conveying this, is that Bitcoin mining can take advantage of excess energy in regions with corrupt governments, it can bypass restrictions, and potentially disrupt the energy market. The discussion emphasizes that Bitcoin's fundamental value is tied to the cost of energy rather than fiat currency. Over the long term, government regulations and subsidies may not significantly impact Bitcoin mining, or its adoption. Troy expands on this theory in this recent article. (https://www.coindesk.com/consensus-magazine/2023/07/24/the-single-most-important-truth-about-bitcoin-mining-energy-and-the-environment/)
**Treble and Bass = Grid Harmony**
**Terms and Definitions**
**FERC-** FERC was originally called the Federal Power Commission to then become the Federal Regulatory Commission created on October 1 1977. The FPA was originally designed to coordinate federal hydropower development (in 1920) then in 1935 it was given the independent regulatory status to then regulate both hydropower and electricity. Then in 1938 the natural gas act gave FPA jurisdiction over interstate NG pipelines and wholesale sales. FERC was created due to a response to the oil crisis of 1973 and thus passing the Department of Energy Organization act of 1977 in an effort to consolidate agencies into a ‘department of energy’. DOE was born. Congress insisted that the independent regulatory body be retained.
- FERC originally was to determine whether wholesale electricity prices were unjust and unreasonable
- If so regulate the pricing and give some refunds to ratepayers
- FERC an independent organization that its commissioners are appointed by the president and confirmed by the senate
- Order 888 was issued in 1996 which created the RTO’s (regional transmission organizations) in response to the Energy Policy Act in 1992.
**RTO’s-** Organized by FERC to have what were the former power pools to ‘rebrand’ themselves as independent transmission operators that would be able to compete in a wholesale electric market administered by RTO’s. PJM, NYISO and ISONE were first in line. Like an ISO they operate transmission systems and develop innovative procedures to manage transmission equitably.
**ISO’s-** Independent System Operators were designed to consolidate and manage the operation of transmission facilities to provide nondiscriminatory open transmission service for all generators and transmission customers.
Traditional wholesale markets were in the SE, SW and NW and most were vertically integrated where they own generation, transmission and distribution systems to serve electricity consumers. They also many include federal systems:
- Bonneville Power System
- Tennessee Valley Authority
- Western Area Power Administration
At the wholesale level, the RTO’s an…
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