New York City State is providing some reprieve to cryptocurrency miners after its regulatory authorities authorized a brand-new electricity rate for an upstate utility that lets mining ventures work out deals there.
On Thursday, state legislators reduced the fees for Massena’s municipal utility, which will evaluate its agreements with miners on a specific basis. The move happens after a March order that The big apple officials sent off to 36 municipal power authorities, consisting of Massena’s, to increase the rates for miners while leaving them unchanged for consumers.
New York has become an appealing location for cryptocurrency miners because of its wealth of hydropower sources and the resulting inexpensive electricity. The circumstance in the state is comparable to that in countries and regions like Iceland, China, or Canada’s Quebec district. The powers are attempting to strike a reasonable balance with electricity rates, leaning toward locals while also drawing in new mining ventures.
In June, for example, Canadian state-owned power producer Hydro-Quebec was ordered to enhance the electricity rate for miners three times to C$ 0.15 per kilowatt-hour. The change was said to become temporary and appropriate only to new companies.
However, Nyc has decided to leave a door open for crypto miners. John Rhodes, chairman of the New York State Department of Public Service, said:
“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.”
In upstate New York, the old hydroelectric dams put together many years ago have enabled municipal utilities to offer cheap energy for locals. In Massena, consumers pay out about $0.039 per kilowatt-hour, which is much less than the average US price of almost $0.13.
In March, the city board of Plattsburgh, a small town in New York State, approved a moratorium to limit the endeavors of crypto miners until an answer was discovered.