New York State Regulators Approve New Power Rate Structure for Crypto Miners
July 13 2018 - 12:26PM
ADVFN Crypto NewsWire
New York state regulators have approved a new
electricity rate scheme for cryptocurrency miners that will allow them to
negotiate contracts, Bloomberg reported July 12. According to
Bloomberg, several months ago the state of New York gave permission
to 36 municipal power authorities to charge crypto miners more than
other consumers.
The Massena municipal utility will introduce a new
rate structure for crypto miners who are interested in conducting operations
there. The utility will consider contracts on a case-by-case basis,
which will protect other utility customers from increased rates.
New York State Department of Public Service Chair John Rhodes said
in a statement:
“We must ensure that business customers pay a fair
price for the electricity that they consume. However, given the
abundance of low-cost electricity in Upstate New York, there is an
opportunity to serve the needs of existing customers and to
encourage economic development in the region.”
Due to an abundance of hydroelectricity, New York is known for cheap electricity rates.
Residential consumers in Massena pay an energy charge of about
$0.039 per kilowatt hour, where the national average residential
rate is $0.13 per kilowatt hour. The state has become a destination
for digital currency miners, who employ powerful specialized
computers for the energy-intensive activity.
Regions rich in hydroelectric power have resisted the
influx of miners over the past year either through outright bans on
the industry or increased power prices. In March, the city of
Plattsburgh, New York passed a moratorium on new
crypto mining operations in the city. The biggest mining operation
in the city reportedly used 10 percent of Plattsburgh’s 104
megawatt hour (Mwh) electricity allotment in January and
February.
In Quebec, Canada, provincial utility
Hydro-Quebec proposed a new regime under
which blockchain companies will be
required to bid for electricity and quantify expected job creation
and investment. The utility seeks to allocate up to 500 megawatts,
in addition to 120 megawatts of already existing initiatives. The
starting rate is 1 Canadian cent ($0.0076) per kilowatt hour, which
is 20 percent above the standard price.
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