Washington State to raise electricity rates for Bitcoin miners

Rage Review : For Bitcoin miners, electricity costs can also affect the rise and fall of business. There are several areas in Washington State with relatively low electricity costs, especially Chelan County, which is particularly rich in hydroelectric power. However, this "benefit" may be coming to an end. A public utility department in the state has been in a power consumption dispute with the local Bitcoin industry for several months, and now they say they will raise electricity rates.

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Washington State to raise electricity rates for Bitcoin miners

A Washington state utility is set to raise electricity rates for bitcoin miners, months after it was involved in a power consumption dispute with the local bitcoin industry.

Earlier this week, the Chelan County Public Utilities Department (PUD) announced that it would increase electricity rates for so-called “high-density load consumers,” or users who use more than 250 kilowatt-hours per square foot per year, starting in January 2017. The PUD’s rule is aimed primarily at server farms and bitcoin mining sites, or data centers that specialize in providing online trading services.

However, bitcoin miners in the region will not feel the increase in electricity bills immediately, as the utility said a five-year transition period would be considered if existing users could prove they had made a "significant investment" and met additional criteria.

The project dates back to a few years ago, when the bitcoin mining industry was just beginning to take off. Chelan County was rich in hydropower, and several companies wanted to set up shop here. According to reports, many bitcoin miners called and visited the Chelan County Public Utilities Department to ask officials if they could delay the payment period for new high-density load users until the end of 2014.

Bitcoin miners typically run power-hungry machines in a race to find the next block of transactions, a process that earns them rewards from the network. The cheaper the electricity, the more money miners make, and there are several areas in Washington state with the cheapest electricity, especially places like Chelan County.

Representatives of the Ministry of Public Utilities mentioned in a statement that they believe the increase in electricity rates is fair and is the result of months of discussions between its officials and the public.

Dennis Bolz

"There are a lot of people and groups that have been involved in this proposal, and I think it's a good one," said Commissioner Dennis Bolz.

We are still unclear about the views of Bitcoin miners in the region. We contacted some miners by phone but did not receive a response.

In an interview with my newspaper earlier this year, miners in Chelan County and neighboring counties expressed dissatisfaction with the planned increase in electricity rates, and some said the move would cost them their jobs.