Washington Proposes to Increase Energy Bills for Crypto Miners
With mining being one of the most expensive parts of the cryptocurrency industry, some local governments seem to start looking for a way to monetize it.
According to the report by Central Washington radio station, KPQ, Washington’s Chelan County Public Utility District (PUD) is proposing a new electricity pricing structure for crypto miners. As explained by Lindsey Mohns, the Customer Utilities Rate Adviser, the new rate structure, known as Schedule 36, brings in a “market consideration on the energy price,” since the government will have to purchase power on the market in order to serve the variable load connected with the crypto mining process.
The Schedule 36 has been crafted shortly after the government’s crackdown on ‘underground’ miners. After unauthorized crypto mining activity was detected, the Chelan PUD ordered the staff to enforce a moratorium on cryptocurrency mining. However, this was not the first government action taken to prevent high energy spending. Prior to that, the city of Ephrata imposed a one-year ban on new cryptocurrency mining operations. According to Kimberlee Craig, the Public Information Officer of Chelan PUD, the new rate structure has been developed with “both sides in mind” – in a way that captures the projected cost and also protects the investment of the companies that are already here and “invested in the system.”
The new regulations were met with a growing concern in the crypto mining industry. As it appears, the governments may seek control over energy pricing as the most obvious way to control the emerging cryptocurrency industry, experts say.