New York State Changes Stance on Crypto Miners

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Fredrik Vold

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June 26, 2023

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The State of New York has opened its door for negotiations with power-thirsty crypto mining operators, Bloomberg reported. The move marks a departure from the traditional stance where power suppliers would not necessarily agree to negotiate contracts on an individual basis.

It also comes only four months after the state declared that municipal power authorities are allowed to charge crypto miners higher rates than other customers, in an effort to shield residential customers from increased electricity costs.

“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,” John Rhodes, chair of the New York State Department of Public Service told Bloomberg.

Upstate New York is known to have an abundance of renewable energy from hydropower, which has kept electricity prices at low levels for years. Crypto mining operators have increasingly shifted their focus to these areas of the world, which also includes other regions such as Canada, Iceland, Norway, and some parts of China.

According to the same article, residents in some counties in New York State pay rates of only 3.9 US cents per kilowatt hour. That compares to a US national average of almost 13 cents.