A rural Washington utility firm has put a halt on the acceptance of electricity applications meant for cryptocurrency mining and related blockchain uses. This has been reported by the Seattle Times.
The Public Utility District Commissioners (PUD) based in Franklin have gone ahead to suspend the granting of applications. This will give staff ample time to look into the impact of the high demand of power that crypto mining has on the electricity grid. The staff of PUD is also said to be thinking of introducing a new rate arrangement.
Digital currency mining requires sophisticated computers that tend to consume high volumes of power.
Cheaper rates
Since both New York and rural Washington provide electricity at cheaper rates, lots of miners moved in to take advantage of the discounted rates. The region relies on hydropower which is a renewable source of power. However, miners are now being closely monitored by both power companies and regulators. There has been growing concern about the sustainability of power supply to residents in future.
It was only at the beginning of this month that regulators in New York introduced a new scheme of electricity rates meant for digital currency miners. The new structure allows the said miners to negotiate contracts. Following the decision, 36 municipal authorities have since been allowed to charge miners a higher rate than ordinary consumers. The Massena municipal utility will charge interested miners different rates depending on the miner’s particular situation.
Moratorium
Following the uncovering of illegal mining activities, the PUD in Chelan instructed its staff to administer a moratorium on the activities of crypto mining in April. In a bid to safeguard electricity systems, the staff was to execute measures like imposing fines and penalties, reporting power theft or even disconnecting service.
In Canada, the power company, Hydro-Quebec introduced higher rates for crypto miners willing to set up their activities in the region. However, existing miners were exempted from the higher tariffs.
Initially, China was the main host of the crypto mining sector. The mining companies had to relocate after the Chinese government prohibited the said activities.