Effective this month, power companies were given the go-ahead to charge cryptocurrency miners with higher rates so that residential homes and businesses wouldn’t have to pay for the large amounts of power consumed by cryptocurrency miners for their mining operations.
Cryptocurrency miners consume so much power that some power companies, like that in Plattsburgh, supply more than they can produce. They purchase more power at higher rates just to cope up with the demands. This, in turn, jacks up the rates for residential homes and businesses.
In the New York State Public Service Commission’s crackdown of high-load power consumers, they found that just one large cryptocurrency miner can consume around 33 percent of a local power company’s load. The commission stated
“Cryptocurrency companies generally seek to occupy existing commercial or industrial facilities where they can gain access to the large amounts of power required of their operations…It has become clear that the type of electricity load demand was of a different character than load characteristics typically seen by the New York Municipal Power Agency (NYMPA) members.”
These problems lead to the creation of a new tariff that targets cryptocurrency miners.
“A new tariff focusing on high-density load customers that do not qualify for economic development assistance and have a maximum demand exceeding 300 kW and a load density that exceeds 250 kWh per square foot per year, a usage amount far higher than traditional commercial customers.”
This tariff follows the 18-month ban on new cryptocurrency mining operations in Plattsburgh, New York.