New developments in New York is likely to make its Upstate cities a more conducive home for cryptocurrency mining. Due to the abundance in power supply, the state’s regulator has opened the doors of New York”s upstate as it approves a decent payment rate for miners who consume massive amounts of electrical power to carry out mining activities affordably.
The new rate structure was reportedly approved by the New York State Public Service Commission on the 12th of July 2018. The system is designed for a certain upstate utility meant to enable contract bargains from miners who are interested in carrying out operations in the reported area.
The contracts will be cross checked by municipal utility in Massena and it will further secure other utility benefactors asides miners, from inflated cost.
While existing residents are uncomfortable with the increasing rate of migration from Cryptocurrency miners as it may likely to increase the cost of electricity bills, the relocation is understandable seeing that New York’s upstate municipal utility is enriched with Hydroelectric dams, making the charge for power bills cheap and affordable.
Speaking on the necessity of the implementation of fair prices for businesses, John Rhodes the Commission Chair disclosed ;
“We must ensure that business customers pay a decent hourly rate for the electricity that they consume. 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.”
Things were not always smooth with miners in upstate New York as the New York Public Service Commission had previously cleared the New York Municipal Power Agency to increase cryptocurrency bills for miners in upstate New York such that miners are made to pay for one-third of the demands of the municipal utility.
Following the price increase in March 2018, Plattsburgh, another small city in New York unanimously voted for a ban to cease the launch of new crypto mining firms for the next one and half year, due to the increasing rate of power consumption.