NY-based Crypto Companies Will Face Higher Electricity Bills
New York is home to one of the world’s most advanced crypto regulations, as the state has introduced a wide variety of regulations that crypto companies are required to follow. Recent reports indicate that a court ruling has recently decided that upstate and municipal power authorities will be able to charge cryptocurrency companies higher prices for the amount of electricity used.
The arguments behind the ruling mostly state that digital currency companies often require huge amounts of electricity to keep the blockchain network online, and for mining purposes. Because of this, crypto companies are often customers with high-density electrical loads, especially when their load density exceeds the 250 kWh per square foot, per year load density. Because of this, they also do not quality for economic development assistance that other companies have access to.
Recently, the New York Municipal Power Agency made a petition stating that high density load customers can have an impact on local power supply. Before the ruling, electrical companies weren’t able to charge certain businesses higher rates for electricity used. Yet, an increase in electricity price for crypto companies is seen as an effort to avoid prices skyrocketing for local businesses and residential customers, which are not high density consumers.
Commission Chairmen John B. Rhodes mentioned that: “We always welcome and encourage companies to build and grow their businesses in New York (…) However, we must ensure business customers pay an appropriate price for the electricity they use. This is especially true in small communities with finite amounts of low-cost power available. If we hadn't acted, existing residential and commercial customers in upstate communities served by a municipal power authority would see sharp increases in their utility bills.”
Following the court ruling, electricity costs for high-load clients will increase this month, whereas electricity prices for normal customers will quickly return to the levels attained previously.