New York State Department of Public Service approved the application of the Massena electric utilities for implementation of individual tariff plans for customers consuming large amounts of electricity, such as cryptocurrency miners.
The state authorities of New York have therefore approved a creation of new tariff schemes which will allow miners to pay for energy through contracts. A few months ago, regulators have accepted 36 municipal supply companies to charge an increased fee for crypto mining activity.
Representatives of the commission are sure that suppliers will guarantee an honest price for electricity to miners. In addition, the State of New York has additional sources of cheap electricity meaning that the state is able to meet the needs of existing customers and attract new ones to the region. The new approved rule will allow any consumer of electricity with a maximum power requirement of more than 300 kilowatt-hours to qualify for service under the special contract.
Why it is important
- New York is not the first state that has come across the problem of increased electricity consumption. Previously Central Washington was transformed into a "cyber-boomtown" as bargain electricity rates have attracted miners. The public became worried that an increased number of miners would increase electricity prices.
- It is likely that other states will also develop special tariffs in an attempt to provide optimal conditions for both miners and ordinary energy consumers.
This news is especially important given that Coinmint has announced plans to create the world's largest mining center in former Alcoa East Facility complex in Massena, New York. Mining company will invest $700 million in the new center with a production capacity of 435 megawatts.
By Ekaterina Ulyanova