Mining in a New Style: New York State Regulators Approve Special Rate Scheme

Mining in a New Style: New York State Regulators Approve Special Rate Scheme

New York state miners are seeing changes in the electricity rate scheme as the state’s regulators have permitted them to conclude contracts. Just some months ago 36 municipal power authorities were authorized to charge producers of cyber assets more than any other consumers of electricity.

As it is known, crypto-mining is aggressive when it comes to consuming energy, yet the regulators want to ensure all power supply consumers pay a fair price and develop economically.

New York Miners to Experience Changes

In accordance with Bloomberg’s report, miners, who are interested in doing business in The Massena municipal utility, will be introduced to a new rate scheme. In this area, there will be considered the option of case-by-case contracts. The latter will bar other utility users from enlarged rates.

In an official statement, John Rhodes, the New York State Department of Public Service Chair, said that the authorities had to make sure business customers are not overcharged for the electricity.

“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,” added Rhodes.

Cheap Rates

In New York state electricity, produced from hydropower, is in exuberance. That is why it is cheap – Massena consumers pay $0.039 per kilowatt-hour, whereas the national average residential rate there is $0.13 per kilowatt hour. And thus, the area had become a hot pie for lots of cyber money producers as they use super-powerful computers for solving complex equations, which require a significant volume of energy for that.

As it is said in the report, within the past year regions, where hydroelectricity is in abundance, have augmented the electricity prices or restricted the inflow of miners. For instance, at the dawn of this year spring, the Plattsburgh, which is in New York, adopted a moratorium on new cyber mining activities there. Reportedly, the most prominent mining operation in Plattsburgh consumed 10% of the city’s 104-megawatt hour (Mwh) power allotment in the last two months of winter.

Meanwhile, in Quebec, Canada, one of the provincial utilities offered a novel scheme, according to which blockchain businesses would be demanded to bit for electro-power and measure the number of initiatives that already exist. The initial rate is equal to 1 Canadian cent ($0.0076) per kilowatt hour. That’s 20% on top of the regular price.