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Washington Energy Provider Has Ceased Approving Request from Cryptocurrency Miners

Adriana M. by Adriana M.
July 31, 2018
in Latest News

A utility supplier in rural Washington no longer accept applications from cryptocurrency mining operations.

According to Seattle Times, the Franklin Public Utility District (PUD) temporarily blocked receiving energy applications from cryptocurrency and blockchain-related activities. PUD staff announced that under the signed moratorium it will begin to investigate the way crypto mining operations influence the electricity system. It also deplored that the company would consider implementing a special rate for such activities.

Many miners are attracted to the areas of Washington and New York especially due to the cheap price of electricity as you’ve probably known that mining operations involve a huge amount of energy consumption. Until now, crypto mining investors have enjoyed the free development of their businesses, not being subject to local regulations, as utility operators have focused more on providing their services to local citizens and businesses.

Back in April, another Washington utility provider, Chelan PUD, has signed a moratorium after several unauthorized mining operations have been identified. The defense measures included fines and penalties, but also “reporting unauthorized loads to law enforcement as power theft”, and “firing officials to protect public safety.”

This month, New York state regulators have implemented a system of special rates for electricity consumption, dedicated to crypto miners. Following this law, 36 municipal power operators have the authority to set a higher price than the standard one for crypto miners. The Massena utility provider has revealed that it will negotiate the price on a case-by-case basis without affecting the citizens.

Tags: BlockchainCryptocurrencycryptocurrency miningMiningPUDWashington
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