Plattsburgh Officials Approves Bill on Temporary Ban of Crypto Mining Operations

Plattsburgh Officials Approves Bill on Temporary Ban of Crypto Mining Operations

Regulation
March 16, 2018 by Bitzamp
136
Plattsburgh, a small municipality of the New York state, has unanimously approved a temporary ban on crypto mining in the city, Vice reported on March 15. The City Council unanimously passed an 18-month moratorium on crypto mining activities in Plattsburgh. The ban will only affect emerging Bitcoin miners in the city while existing miners are still permitted
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Plattsburgh, a small municipality of the New York state, has unanimously approved a temporary ban on crypto mining in the city, Vice reported on March 15.

The City Council unanimously passed an 18-month moratorium on crypto mining activities in Plattsburgh. The ban will only affect emerging Bitcoin miners in the city while existing miners are still permitted to operate.

The moratorium was conceived by mayor Colin Read in January after local residents complained of increased electricity tariff.  The city benefits from cheap electricity provided by a hydroelectric dam on the San Lorenzo River. While residents generally pay $0.045 per kilowatt-hour (kWh), industries including Bitcoin mining pay only $0.02/kWh.

The lighting department of the city had reported of crypto mining operations consuming a significant amount of the town’s electricity supply, thereby forcing the department to purchase more energy at higher prices to meet the electricity consuming demands of the residents.

The largest Bitcoin mining operation in the city used 10 percent of the 104 megawatt hour (MWh) electrical allotment of Plattsburgh in January and February. Speaking to Vice, Read said he had seen proposals suggesting the use of 20 to 30 MWh of electricity for Bitcoin mining operations. “We do not have that,” Read said.

The City Council says it is more concerned about the excessive use of energy from mining operations causing an increased electricity tariff for ordinary citizens.

The officials have reported that over the period of the moratorium it will work with residents and local mining operations to find a permanent solution to the energy problem that will keep residents’ energy bills low, while permitting companies to operate in the city.

 


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