New York State Introduces Subsidized Electricity Rates for Crypto Miners

Despite the overwhelmingly negative image of crypto mining related electricity costs, from the impact they have on the environment to the rising rates of neighborhood power bills, the state of New York has approved a bid to increase the population of miners through cheaper electricity.

The move by the The New York State Public Service Commission was announced Thursday, allowing the Massena Electric Department to “allow high-density load customers, such as cryptocurrency companies, to qualify for service under an individual service agreement.”

While primarily an administrative move, it’s a potentially significant development for cryptocurrency miners hoping to tap the hydro-electrical resources located in New York.

The Massena municipal utility will introduce a new rate structure for crypto miners who are interested in conducting operations there. The utility will consider contracts on a case-by-case basis, which will protect other utility customers from increased rates. New York State Department of Public Service Chair John Rhodes said in a statement:

“We must ensure that business customers pay a fair price 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.”

The newly approved rule will allow any electricity customers with a maximum demand of electricity over 300 kilowatt-hours to qualify for service under a negotiated contract. The contracts will be reviewed by Massena’s municipal utility and must “protect existing customers from increased supply costs resulting from the new service.”

Regions rich in hydroelectric power have resisted the influx of miners over the past year either through outright bans on the industry or increased power prices. In March, the city of Plattsburgh, New York passed a moratorium on new crypto mining operations in the city.

For the cryptocurrency industry, this news comes at a more than opportune time. Considering that there are so many negative developments taking place in the price department, it remains to be seen if this news can appease investors and speculators once again.

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