9 Cryptocurrency firms that mine Bitcoin and other digital assets have filed a lawsuit against Grant County public utility district (Grant PUD), an electricity company in north central Washington. The plaintiffs claim that Grant PUD, its commissioners, and workers increased the electricity bill and as such, they are seeking legal actions against each.
Electricity Company With Over 50,000 Clients
Grant PUD reportedly has over 50,000 customers and a majority of them are cryptocurrency mining firms. The charge against the company states that its actions in creating and approving new rates for electricity are inappropriate. This is because it raises the cost for digital asset miners and other industries which are evolving.
However, Grant PUD responded that all of its customers are members of the evolving industry who mine Bitcoin and other virtual assets. The company also said that in 2017, 75% of the request received for a 2,000 megawatts increase in power came from these miners. This energy represents a three times increase in the electricity that will be used to power homes, businesses, and the industry.
Company to Cover Legal Costs for its Employees
In regards to the charges, the company stated that they are willing to cover the legal costs required to defend its commissioners and 10 workers. These commissioners in August had unanimously agreed that the rates of electricity be raised starting from April this year. This is a “Rate 17” which brings about 15% in 2019, 35% in 2020, and 50% by 2021.
Grant PUD also revealed that
“The first of a three-year, graduated increase to a new, above-cost electric rate designed to protect Grant PUD from risk and preserve below-cost rates for core customers,” the utility
Low Level of Interest in Mining Ethereum in South Korea
Although countries like China which BTCNN reported on November 24 have seen a decline in the mining of cryptocurrencies like Ethereum, it seems the interest of those in the U.S State has not dwindled. Ethereum, for instance, was reportedly yielding low profits which discouraged miners and made them sell off their mining rigs. This decline in activities also brought in low profit for NVIDIA last year.
BTCNN also reported a similar event on November 7 where AWS Mining PTY LTD, a mining company in Texas was asked to stop its operations. This is after cease and desist order was received from the Texas State Board Securities. In the authority’s opinion, their operations were not backed by law and customers were being misled by its processes.