Bitcoin miners ask Grant PUD to reconsider energy tariff increases

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Several bitcoin miners and people involved in the bitcoin industry asked Grant PUD to reconsider increasing their rate of evolution in the industry during their commissioners meeting on December 13.

Rate 17 is a rate specifically designed for evolving industries such as crypto mining.

If accepted, the first rate increase will take effect after February 1, and then another increase after April 1.

For retail customers using more than 200 KW, the rate will increase from $750 to $1,000 per month, with a power charge increased from $19 to $29.13 per kW.

In the commission package, Grant PUD says there has been growing pressure from international, federal and local agencies to better regulate crypto mining, saying the industry brings “substantial regulatory risk” to their residential customers.

Cathedra Bitcoin CEO AJ Scalia said these increases in energy tariffs could put crypto miners out of business, due to a significant drop in bitcoin’s value in March.

“The proposed electricity rate for FY17 represents a 70% increase from our current rate at a time when mining revenues are lower than at any point in bitcoin history,” said Scalia. “As CEO, I’m concerned about what this could mean for existing and future operations.”

Grant PUD Commissioner Larry Schaapman said that even with the rate increases, crypto miners still have the lowest energy rates compared to other industries.

“To put you in that fare class is because when you’re in seven you’re under cost of service, and that’s just not right,” Schaapman said. “We have residential people paying 5.6 cents. We have irrigators who already pay 4.8 [cents]and i look at this you tell me why a customer wouldn’t be mad at me that you get 2.6 [cents].”

Grant PUD tabled this topic for their next committee meeting on January 10th.

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