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  5. Electricity Rates Rise 30% for Bitcoin Miners in Washington

Electricity Rates Rise 30% for Bitcoin Miners in Washington

Electricity Rates Rise 30% for Bitcoin Miners in Washington

Because bitcoin mining operations require a higher degree of electricity than any other consumer, county Public Utility District (PUD) commissioners this week approved a bill to charge bitcoin miners higher electricity rates. bitcoin in Chelan County, Washington.

According to the 560 KPQ report of June 8, the approved bill implies an increase of around 29% in electricity rates. This move effectively switched mining companies from the usual “high density” billing schedule to a newly created schedule known as Rate 36, especially for cryptocurrency miners.

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Chelan County PUD Commissioner Garry Arseneault added:

What we did as a commission, and what we did as a utility, was industry leading, to create a new rate for this type of demand.

Changing rates for mining companies is technically fair because they handle large amounts of electricity and will therefore pay higher rates.

Additionally, due to the fact that miners need massive electricity to run their operations, Douglas County has prohibited these new businesses from moving into the county. Existing businesses already use around 25% of available electricity.

The new rates were supposed to take effect in January this year, but officials pushed the date back to June. However, the vote having taken place on Monday and the bill approved by the Commission, the new rates have already entered into force as of June 1.

Bitcoin price is currently trading above $30,000. | Source: TradingView.com BTC/USD price chart

Will bitcoin mining companies be closed?

Higher electricity prices would not hold miners back. For startups that are currently unable to pay the additional fees in the new schedule because they have already invested substantially in establishing mining facilities, the Commission has offered three verified mining rigs to sign transitional contracts. It would raise prices gradually rather than imposing high tariffs all at once.

PUD Commissioner Ann Congdon added Tuesday:

We have to have some kind of transition. It is important for business. I understand how much companies need it to plan.

Although the Commission has entered into bridging contracts, criticism from the mining community is still being felt.

Salcido Enterprises CEO Malachi Salcido told local media, Wenatchee world, that he would have to reconfigure all three of his mining rigs into data farms due to rising electricity rates in Chelan County. In addition, he owns four other mining facilities in addition to these two platforms that he is thinking of transiting, two of which are located in Douglas County and the other two in Grant County.

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Under the new rules, if Salcido routes his Chelan-based businesses through data farms and processes the data instead of mining it, the platforms will pay lower fees under the “high-density” schedule. Before the passage of the new bill, crypto companies paid according to this schedule.

Salcido further told the outlet that data processing requires the same electrical power as miners.

He added:

Do you really want to bother regulating the kind of processing that happens on servers in your territory?

Featured image from Pixabay and chart from TradingView.com

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