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Regulators Set Revised Electricity Rates For Crypto Miners In New York

The regulating authorities of the New York state have given their seal of approval to a new scheme of electricity rates for cryptocurrency miners. This move, reported by Bloomberg on the 12th of July, allows them to enter into contract negotiations. Some months before this move, the regulatory body had allowed 36 municipal power entities to extract higher revenues from cryptocurrency miners vis a vis others consuming the service.

The municipal body at Massena is slated to present a new scheme of rates for crypto miners who are enthusiastic to conduct their operations in that area. John Rhodes, the Chair of New York State Department of Public Service, in a statement, said, that to avoid unreasonably discriminatory pricing for other users, the municipal authorities will take a call on a case by case basis rather than implementing a blanket decision.

He further commented that they aimed to ensure all users were priced justly but also that the policies could encourage economic development in the area.

The hydroelectricity available in New York makes electricity costs low and residential users in the Massena area pay about $0.39 per kilowatt hour. As a result of such low costs, cryptocurrency miners have increasingly begun to flock to Massena to conduct operations since they need a high degree of intense electricity usage to fire their operations. Areas that benefit from an abundance of hydroelectric power have so far steered clear of allowing crypto miners to operate. While some regulators have banned mining altogether, others have made use of incremental charges to prevent crypto miners from flooding in. After the largest crypto miner in New York’s Plattsburgh City used 10 percent of the city’s electricity quota in January and February, the authorities put into place a stringent moratorium in March for new crypto miners looking to come in.

Hydro-Quebec of Canada suggested a new scheme which would require blockchain companies to bid for electricity and stipulate the number of job creations they have the potential to create. This scheme would involve allotting about 500-megawatt hour of electricity in addition to the pre-available 120 units for crypto miners, the rates being about 20 percent more than the usual rate.

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