New Power Rates Approved for Crypto Miners in Upstate New York
The newly approved rule will make it possible for any electricity customers with a maximum demand of electricity over 300 kilowatt-hours to be eligible for support under a negotiated contract. The contracts will be assessed by Massena’s civil utility and must”protect existing clients from increased distribution costs caused by the new support.”
A municipal utility provider in New York got the green light from state regulators to make a new set of power prices to cryptocurrency miners.
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The transfer by the New York State Public Service Commission was announced Thursdayallowing the Massena Electric Department to”allow high-density load clients, such as cryptocurrency companies, to qualify for support under a single service agreement.”
The decision came in response to a request filed with the New York Municipal Power Agency (NYMPA), which expressed concern that local inhabitants may experience higher prices as a result of higher-than-average ingestion rates of miners.
“We have to guarantee that business clients pay a fair price for the energy they consume. However, given the prosperity of cheap electricity in New York, there is an chance to serve the requirements of existing clients and also to encourage economic development in the region.”
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While primarily an administrative move, it’s a potentially significant advancement for cryptocurrency miners hoping to tap the hydroelectrical resources located in New York.
A senior official for the commission stated that the decision was based on a desire to balance the requirement to bill”fair” prices while also bringing business to the region.
Thursday’s move wasn’t the very first of its kind from the Commission — before this year, the entire body accepted a bid to levy miners with higher prices in the form of a fresh tariff.
Commission chairman John Rhodes stated in a statement: