New York’s Plattsburg Pushing for Crypto Mining Regulations
Access to cheap electricity and a relatively cooler climate makes a city or county a more preferred location for cryptocurrency miners. The power-heavy industry needs electricity not only to power its miners but also to keep facilities cool. However, the City of Plattsburgh in New York doesn’t intend to let crypto activities continue unchecked. The city is currently pushing for extra regulation in the sector.
City States Crypto Woes
The Press-Republican carried a statement from the City of Plattsburgh Common Council that stated that the public is aware of the crypto mining industry’s heavy reliance on cheap industrial power rates.
The lower tariffs are because of the Municipal Lighting Department (MLD) which purchases cheap hydroelectricity from the St. Lawrence River operations of the New York Power Authority. However, once this power runs out, the city has to buy power from the open market which could be seven-times as expensive as the St. Lawrence River power.
During December 2017 and January 2018, usage spikes hit the city causing MLD customers to pay as much as $300 extra per month. The city then requested the Public Service Commission to instruct crypto miners to pay the surplus bill.
Following this, the city along with some other concerned municipalities was able to petition to the Public Service Commission to establish a new tariff structure that makes crypto mining operations pay for the entire overages of power from the city’s quota. This would help residents stay safe from rising electric bills.
Ephrata’s Moratorium Example
Authorities in Ephrata, Pennsylvania recently opted for a 12-month moratorium on new mining operations in the local area. During the yearlong ban on new crypto mining activities in the region, a commission will be tasked to investigate the best way to manage the issue. However, this decision by the authorities doesn’t do anything significant to the four mining operations already located within the city.
However, Plattsburg is trying to go a different route it seems. In a press release, it wrote:
“The combination of our petition to the New York State Public Service Commission and these sensible proposals to modify our local laws should protect our citizens and act as a model for other municipalities around the country and the world that are trying to cope with such rapid growth of this industry in their communities.”
New York’s Plattsburg Pushing for Crypto Mining Regulations was originally found on [blokt] – Blockchain, Bitcoin & copy trading cryptocurrency.