Comment I don't know about the Bitcoin connection... (Score 5, Informative) 411
It's an attempted end-run around obtaining a search warrant, which would require more than just higher than average power consumption. The way it works is the municipality sends a bylaw inspector to a home for a "safety inspection" after someone notices that the power consumption at the residence is higher than it should be.
The inspector can't force his way in, but a bit of bullying and a stern "What have you got to hide?" or "I'll come back with a warrant and make your week difficult" is often all that's necessary, especially if the homeowner in question isn't actually doing anything wrong, and isn't used to dealing with stuff like this. The inspector brings along a police escort for "safety and security." Convenient.
The inspector looks around, and if he finds a grow op, well, hey, lookee here, the police just happened to be down the hall! Now they don't need a search warrant because it wasn't "a police search."
If the inspector finds nothing illegal, he (often but not always) presents the homeowner in question with a bill for the inspection, which can range from $5k to $10k.
Good news though: A few days ago, the BC Supreme Court has issued a giant "fark you" to the practice: