New York State Public Service Commission Aprroves New Power Rates For Crypto Minersbr>
The New York State Public Service Commission (PSC) has approved a new electricity rate structure for crypto miners that was proposed by the Massena Electric Department.
The approval will enable the Massena Electric Department to allow high-density load customers, such as cryptocurrency miners, to qualify for service under an individual service agreement, which includes provisions that will protect existing customers from increased supply costs resulting from the new service.
“We must ensure that business customers pay a fair price for the electricity that they consume,” New York State Department of Public Service Chair John Rhodes said in a statement. “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.”
Under the newly approved rule, crypto miners will be eligible for service under an individual service agreement if their maximum demand exceeds 300 kilowatts, and the customer provide benefits to the utility. The new rule also allows municipal utility provider to recognize potential benefits associated with high-density-load customers, such as increased utilization of currently underutilized transmission and distribution facilities.
The approval of a new electricity rate structure came after the PSC ruled that upstate municipal power authorities can raise their electricity rates if crypto mining companies choose to use the state’s hydropower. At the time, the PSC said the ruling was needed to level the playing field and prevent local electricity prices for existing residential and business customers from skyrocketing due to the soaring local demand for electricity.