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New York Regulators Set Out New Electricity Rate for Miners

Kristina Frunze | Jul. 13, 2018
New York Regulators Set Out New Electricity Rate for Miners

New York regulators set out new electricity rate for miners - some of the online reports state that New York has given permission to 36 municipal power officials to charge crypto miners more than other consumers.

13 July, AtoZ Markets – The state regulators of New York have approved a new electricity rate scheme related to the cryptocurrency miners. The new rate will enable regulators to negotiate contracts. 

New York Regulators Set Out New Electricity Rate for Miners

As per some of the online reports, the state of New York has given permission to 36 municipal power officials to charge crypto miners more than other consumers. The Massena municipal utility is expected to introduce a new rate structure for crypto miners who are interested in carrying out operations here. The utility will look into contracts on a case-by-case basis. This method is anticipated to protect other utility customers from lifted rates. New York State Department of Public Service Chair John Rhodes has stated 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.”

Hydroelectric - rich areas limit miners' inflow

New York City is known for cheap electricity rates – the residents of Massena are paying about $0.039 per kilowatt hour, while the national average residential rate totals at $0.13 per kilowatt hour. Such low rates have attracted a lot of digital currency miners to the state. These miners are using very powerful energy-consuming special computers for their operations. 

In fact, areas that are rich in hydroelectric power have been trying to limit the inflow of cryptocurrency miners during the past year. The authorities have been enacting outright bans on the industry or increased power prices. Back in March, the city of Plattsburgh has passed a moratorium on new crypto mining operations in the city. Reportedly, the biggest mining operation in the city reportedly used 10 percent of Plattsburgh 104 megawatt-hour electricity allotment in the first two months of the year. 

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