Lawmakers in new York complicate mining in the state – they agreed that energy companies can increase the electricity tariffs for mining companies.
The Commission on services to the population of new York (PSC) has allowed the municipal electricity providers to increase bids for miners of bitcoin and data centers. This decision was a response to the complaint 36 municipal suppliers of the electric power submitted to the PSC. The energy companies believe that because the benefits of cheap hydropower, the state’s data centers and crypto-currency miners, ordinary people lose out. The decision of the PSC dated March 15, reads as follows:
«The Commission on services to the population of the state of new York decided that the municipal energy company of the state can set higher tariffs for electricity for cryptocurrency companies that require huge amounts of electricity for doing business. This decision was necessary to prevent a sharp rise in electricity prices for all citizens and companies in connection with increase in demand.»
According to energy companies, many of them are faced with increased demand for cheap hydropower from organizations that need its large number. «These requests are mostly coming from server farms, usually for the mining of cryptocurrencies,» — noted in the complaint companies. The decision also States:
«Cryptocurrency companies involved in mining bitcoin, using a large number of computers to manage complex software system. As these clients are connected to the network, it becomes clear that the type of demand for electricity is of a different nature than the one usually observed members of the NYMPA».
This news followed soon after the exacerbation
situation in city Plattsburgh of the state of new York, where the local authorities demanded a moratorium on mining bitcoin because of the increased energy consumption. The PSC decision will allow electricity suppliers to create a new tariff for all energy consuming operations. Company can consume power more than 300 kW and with a density of load distribution that exceeds 250 kW/h per square foot per year, will pay more for electricity from next month.