Plattsburgh becomes first in nation to ban bitcoin mining

A cryptocurrency mining computer array owned by Digital Skynet is already humming away- and sucking up lots of electricity- in Massena. Officials is Plattsburgh are concerned similar computer installations are using too much power

A cryptocurrency mining computer array owned by Digital Skynet is already humming away- and sucking up lots of electricity- in Massena. Officials is Plattsburgh are concerned similar computer installations are using too much power

Bitcoin mines use enormous amounts of electricity.

The city council unanimously approved an 18 month moratorium on crypto mining activities in Plattsburgh.

This decision comes at a time when disputes over cryptocurrency mining farms in New York State have already been seen in public debates and results from a petition filed by the New York Municipal Power Agency (NYMPA), an association of 36 municipal power authorities which represents customer-owned munis buying and distributing low-priced power, often hydroelectric, at no profit. Mining operations have gravitated to the city to take advantage of its cheap rates, but that has proven to be a big problem for the small city. To cut down on energy expenses, miners often flock to cities with cheap power. "In Plattsburgh, for example, monthly bills for average residential customers increased almost $10 in January because of the two cryptocurrency companies operating there". For comparison, the USA average is a little over 10 cents per kilowatt-hour.

During this 18-month cooling off period, the Plattsburgh officials are hoping to work with cryptocurrency miners on a solution to the monstrous power consumption, perhaps working out a deal where miners will pay for their excess usage or pay a higher utility rate. The city also charges industrial enterprises only 2 cents per kilowatt per hour as an incentive for companies to move to Plattsbugh.

The problem is Plattsburgh has just 104 megawatt-hours of electricity per month from its hydroelectric dam. As a result, Plattsburgh has been forced to purchase more electricity on the open market at higher prices. When this happens, the residents must share the expense. The cost of doing so is split up among all customers, and it increased bills by $100-200. Some complained that their bills surged as much as $300. Some have estimated that bitcoin miners will use more power than electric cars in the near term. Besides being power-hungry, crypto-mining companies don't employ as many people as some other businesses, Read argued. Its proximity to the lake also means Plattsburgh is able to enjoy low-priced hydroelectric power, making it extremely attractive to large-scale crypto-mining operations.

Plattsburgh gets cheap power from the St. Lawrence River, driving down electricity costs for residents, but it exceeded its allotted amount of hydropower in December and January, according to a local newspaper.

"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", John B. Rhodes commented.

Recommended News

  • Boulder that killed auto  passenger was intentionally dropped, police say

    Boulder that killed auto passenger was intentionally dropped, police say

    The CHP believes the boulder weighed between 30-35 pounds. " This was an intentional act ", CHP Lt. CBS Los Angeles reports the victim has been identified as 23-year-old Christopher Lopez .

    Marathon Patent Group, Inc. (MARA)- Stocks Ringing Performance Alarms

    In theory, there are an infinite number of simple moving averages , but the most common are three SMA20, SMA50, and SMA200. This is based on a 1-5 numeric scale where Rating Scale: 1.0 Strong Buy, 2.0 Buy, 3.0 Hold, 4.0 Sell, 5.0 Strong Sell.
    Lizbeth Mateo, Undocumented Immigrant, Appointed to California Post

    Lizbeth Mateo, Undocumented Immigrant, Appointed to California Post

    She learned English while in high school before going on to college and earn a law degree from Santa Clara University. De Leon said he appointed Mateo because she is someone who "embodies California values and the American dream".
  • Trump persuades challenger to leave Senate race

    Trump persuades challenger to leave Senate race

    Democratic presidential nominee Hillary Clinton carried the Silver State in 2016 by 2.4 percentage points over Trump. Heller is considered one of the most vulnerable incumbent Republican senators in November's midterm election.
    Qualcomm's former exec chair will exit after exploring an acquisition bid

    Qualcomm's former exec chair will exit after exploring an acquisition bid

    CNBC sources confirm FT's story that former Qualcomm (NASDAQ: QCOM ) chairman Paul Jacobs wants to take the company private. Jacobs agreed with Qualcomm's board that Broadcom's bid undervalued the company and was fraught with regulatory risks.
    Marcus Smart to undergo surgery, may return for playoffs

    Marcus Smart to undergo surgery, may return for playoffs

    Smart suffered the injury on Sunday against the Indiana Pacers while diving to the floor for a loose ball in the first half. He will be a restricted free agent in the summer and it's unclear if Boston will look to tie him down to a long-term deal.
  • House to Vote Tuesday on 'Right to Try' Drug Legislation

    House to Vote Tuesday on 'Right to Try' Drug Legislation

    Republicans say the " Right to Try " legislation gives hope to patients with fatal diseases and erects safeguards to protect them. Critics said the measure misleadingly suggests the FDA is the bottleneck to providing the experimental treatments.
    Nobody can come close to Madhuri: Jacqueline Fernandez on 'Ek do teen'

    Nobody can come close to Madhuri: Jacqueline Fernandez on 'Ek do teen'

    With Tiger Shroff, anything that is being discussed is Jacqueline Fernandez's item number that you will get to watch the film. Now, the song is being rebooted to feature in the upcoming film Baaghi 2 and Jacqueline Fernandez guest stars in it.
    Oprah Winfrey makes James Corden cry

    Oprah Winfrey makes James Corden cry

    After hearing Kaling's explanation, Oprah elaborated on her mentality when it comes to investing, adding to what her co-star said. And his deepest regret in life will be if he doesn't fulfill that dream for his children".
  • Real Madrid Defender Admits Non Direct Manchester United Contact

    Real Madrid Defender Admits Non Direct Manchester United Contact

    And when asked whether the club had been in touch with him recently over a potential move, Varane said: "No, not directly". Varane, 24, - who was signed for Real Madrid by Mourinho - has now confessed their has been some contact with United.
    Facebook apologises for search suggestions of child abuse videos

    Facebook apologises for search suggestions of child abuse videos

    If you happened to type "video of" into Facebook's search bar this week, there's a chance you were served some disturbing results. The autocomplete results are usually what Google algorithms have learned that people want to know when they search for something.
    North Korean Foreign Minister to vist Sweden

    North Korean Foreign Minister to vist Sweden

    But no specific time or venue has been set and North Korea has yet to confirm it even made the offer to meet. A South Korean official announced last week that Trump had accepted an invitation from Kim to meet by May.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.