Key Takeaways
- In Chelan County, Washington, a 29 percent rate increase for hydroelectric power was levied particularly for cryptocurrency miners. The increase entered into force on 1 on June 1st.
- For their electricity, the miners used to pay a lower, high-density load rate. They’ll now have to pay a new cryptocurrency rate known as Rate 36.
- As per Cambridge Centre for Alternative Finance, Washington state contributed for 4% of cumulative US hashrate in December.
In Washington state, the once-affordable and encouraging hydroelectricity for Bitcoin miners is beginning to disappear. Bitcoin miners in Chelan County, Washington, will have to pay a 29 percent upturn fee. The County PUD Commissioners authorised the alteration this week, as shown in a June 8 announcement by NewsRadio 560 KPQ, resulting in a 29 percent increase in the power needed for Bitcoin mining.
“What we did as a commission, and what we did as a utility, was industry-leading, a demand for this type of business,” Chelan County Public Utility District (PUD) Commissioner Gary Arsenault informed a local news source.
Mining companies are switching from the high-density load rate schedule to Rate 36, a cryptocurrency rate schedule that was recently created.
As per Energy Information Administration, the Washington government subsidised about two-thirds of all hydroelectric energy produced in the U.s. in 2020. The Grand Coulee Dam, situated on the Columbia River in Grant and Okanogan counties, produces 6,809 megawatts of electricity, making it the world’s seventh largest hydroelectric power plant.
In 2018, the Chelan PUD Commissioners agreed to set up charging cryptocurrency users a larger premium than other customers. It was supposed to take effect in January, but it has been pushed back to June. Due to an order passed by the PUD Commission on Monday, it went into effect on June 1.
Washington state has become a popular bitcoin mining destination due to its affordable and renewable hydroelectricity. According to the Cambridge Center for Alternative Finance, Washington state estimated to account for 4% of the total US hash rate in December.
Georgia produces 31% of the total, Texas and Kentucky each produce 11%, and New York produces 10%.
The commissioners also gave their permission for three qualified bitcoin miners to receive transition contracts. This was done because these miners had already invested heavily in their operations prior to the implementation of rate 36.
Consumers on the bitcoin pricing pattern will encounter a 3% general rate increase that will impact both the basic and demand costs.
