New Power Rate Approved for Upstate New York Crypto Miners

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New Power Rate Approved for Upstate New York Crypto Miners

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Regulators in New York state have given approval to a new electricity rate scheme for cryptocurrency miners.

In response to the permission given earlier by New York state to 36 municipal power authorities to charge higher rates to crypto miners, the Massena municipal utility has come up with its own plan.

A new rate structure will allow crypto miners operating there to negotiate their own contracts to pay a “fair price”. The utility has said that miners will be able to do this on a case-by-case scenario, which is designed to protect other consumers from inflated 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.”

New York is a haven for cheap power due to its hydroelectricity facilities, with residential consumers paying substantially less than the national average of USD 0.13 per kilowatt hour. This has consequently led to an increase in cryptocurrency mining with other companies attracted to the low rates.

One of these is crypto company Coinmint, who recently announced its plan take over a former Alcoa aluminum smelting facility in the state, a move that would make it one of the world’s largest cryptocurrency mining centers, as Bitcoin News reported.

The smelting plant, located in Upstate New York, signed a deal with crypto-mining company Coinmint to install one of the world’s largest cryptocurrency mining centres there. The 10-year lease, with options to renew, will give Coinmint the opportunity to invest USD 700 million into its new facility, expected to bring over 150 new jobs to the nearby town of Massena.

In March, authorities in Plattsburg New York expressed concerns about new mining operations in the city and passed a moratorium on the activity. This was after it was revealed that the city was reportedly using 10% of Plattsburg’s power allocation in January and February.

Across the border, in order to regulate mining activities in Quebec, Canadian utility Hydro-Quebec has suggested a plan by which blockchain companies would be required to bid for electricity and quantify expected job creation and investment. If implemented, miners would be paying 20% above the standard state rate.

 

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