Bitcoin Mining to be banned by Upstate New York Town Officials
Plattsburgh, NY city officials, wants to reserve their electricity for non-crypto economic development. They are worried that the town’s power supply could be exhausted.
Plattsburgh owns some of the lowest energy prices in the United States because of hydroelectric power originating from the St. Lawrence River. When the dams were built on the river nearly 70 years ago, the town secured by low electricity rates for guaranteed supply. Bitcoin miners are taking benefit of it, the city’s administrator says.
The Mayor Colin Read said:
“With great use of additional power, we are put over our threshold each winter, and we can put over our threshold of ratepayers.”
It is warning the business of mining operations like David Bowen’s Plattsburgh BTC, a 20-computer company housed in an old paper warehouse. Bowen had realized the opportunity in the town back in 2014 and had been mining bitcoin ever since. Most of the people found this as a great idea and at the same time vast numbers of other bitcoin miners became his neighbors.
According to the reports, now their destiny hangs in the balance. Mayor Read said that this has made the city to purchase power in the open market at rates remarkably higher than the rate base.
While other businesses in the town also consume the similar amounts of energy, the mayor will prefer watching the power supply go to all the business which adds hundreds of jobs to the area
At the same time, around 80 miles down from Plattsburgh in Massena, NY also has the low-cost power agreements in place for industrial use. The firm is still in discussions, but the possibilities look good between a downturn in aluminum smelting which took a hit on the local economy.