Cryptomining boom has people’s energy bills skyrocketing; feds mull new rules

Americans don't want to deal with a lot of firms flooding the power grid during the summer. As the nation's power grid is strained by record heat and dry conditions, more Americans are expected to experience rolling power cuts. Lawmakers are worried that US cryptocurrencies mining operations planning for rapid growth will cause a domino effect, destabilizing the grid, spiking carbon emissions, and driving up utility costs.

Senator Elizabeth Warren joined five other Congress members to submit a letter to the Environmental Protection Agency and Department of Energy, suggesting the agencies combine forces to draft new regulations requiring emissions and energy use reporting from all cryptocurrencies. How many firms are operating in the US, how much energy is being used, how much damage to the environment is being done, and how many communities are being affected are only some of the questions Warren and others want answered.

The EPA and DOE were provided with new information from Congress' investigation into the environmental impacts of seven of the largest cryptomining operations. It's just a fraction of the whole, but together, these firms plan to increase their total mining capacity by more than 200 percent, requiring more electricity than is used to power all the homes in Los Angeles. None of the firms said that they tracked the impacts on consumers connected to power grids, and none of the firms thought they had a reason to comply with the request from Congress.

The companies didn't give full and complete information in response to our questions. The information they provided shows that the mining operations of these companies have a significant impact on climate change and that federal intervention is needed.

Only three firms shared data on greenhouse gas emissions, but the pattern the limited dataset revealed was troubling to Congress members.

The agencies have until August 15 to prove their authority. Emissions data could be required through the Clean Air Act.

Impact on consumer utility bills

The US became the preferred location for firms to relocate after China banned the practice of cryptocurrencies. The Congress members say in the letter that the US has supplied over a third of the global computing power dedicated to mining Bitcoins. People who live and do business near firms that are moving into the US will end up paying more utility costs.

Plattsburgh is the biggest example. Residential electricity bills were up to $300 higher than usual in the winter of last year, according to a report by Congress members. In response to growing concerns, New York passed the first US moratorium on newcryptocurrencies. The study from the University of California, Berkeley showed the extent of the issue and implications for other areas impacted by future growth.