The energy abuse of mining companies triggers the first ban on bitcoin farms in the United States, specifically in Plattsburgh (New York), becoming the first US city to ban cryptocurrency mining.
The Public Service Commission of the State of New York (PSC) has decided to allow municipal electricity providers the possibility of increasing tariffs for bitcoin miners and data centers. The reason why NY officials chose to allow electric utilities to raise electricity rates is because 36 municipal energy providers submitted an application to the PSC committee. Utilities believe that when data centers and cryptocurrency miners take advantage of cheap hydroelectric power in the state, average customers lose. The ruling of the PSC of March 15 says:
The Public Service Commission of the State of New York ruled today that the authorities of the municipal power of the north of the state could charge higher electricity rates to cryptocurrency companies that require large amounts of electricity to conduct business. The failure was necessary to level the playing field and prevent local electricity prices for existing residential and commercial customers from skyrocketing due to increasing local demand for electricity.
Given these very cheap prices, a lot of cryptocurrency mining companies have moved to this city, causing great discontent among the population due to the high energy expenditure required by these industries, which in turn has caused a large increase in the bills of each resident, reaching increases of 100 or 200 dollars. And that is because Plattsburgh is supplied by the hydroelectric dam of the San Lorenzo River, which means that the territory has only an allocation of 104 megawatts per hour of electricity per month, an amount of electricity that is exceeded for the miners.
Plattsburgh has banned mining in the city for the next 18 months to new companies, although this measure is given not with the aim of going against foreign currency mining, but to preserve the city’s electricity consumption. Colin Read, the mayor of this city, explained in an interview that Plattsburgh currently has one of the cheapest electricity rates in the United States, since residents pay an average of 4.5 cents per kilowatt hour, while in the rest of the country the average rises to 10 cents. In addition, the city has incentives for industries, which only pay 2 cents per kilowatt hour.
The PSC decision can be applied by electricity suppliers this month, detail the commission, and allow utility companies to create a new tariff for all high-density cargo operations. Those that exceed 300 kW and a load density that exceeds 250 kWh per square foot per year could see an increase in costs next month.
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