Investigation reveals hidden reason behind skyrocketing electric bills: 'Households should not subsidize'
Have you wondered why the amount on your electric bill keeps rising month after month?
Hidden behind the increase might be proof-of-work cryptocurrency mining operations getting deep discounts while regular customers pay more. A new report from Earthjustice attorneys reveals just how stark this contrast is across America.
Cryptocurrency mining companies receive heavily discounted electricity rates compared to what households pay.
In Texas, regular homeowners paid around 14.5 cents per kilowatt-hour in 2023, while crypto miners paid as little as 2.5 cents. Similar patterns appear in New York (residents: 22.3 cents; miners: 3 cents), Georgia, Pennsylvania, and Arkansas.
These subsidies directly affect your wallet.
In Texas alone, crypto mining has already raised electricity costs for residents by $1.8 billion yearly — about 4.7% of their bills — according to consulting firm Wood Mackenzie.
The financial impact extends beyond just higher bills. When Riot, a major crypto mining company, temporarily reduced operations during an August 2023 heat wave, Texas' power grid operator paid it $31.7 million, according to Earthjustice.
Meanwhile, middle-class Texans who were asked to conserve electricity watched their power bills climb.
"Residents and businesses near crypto mining facilities face constant noise pollution that threaten their health and well-being. ... Households should not subsidize crypto miners' electricity," wrote Mandy DeRoche, deputy managing attorney in the Clean Energy Program at Earthjustice, and Jacob Elkin, associate attorney.
The mining process consumes massive amounts of energy, stressing local power grids. The Energy Information Agency warns that crypto mining's unpredictable energy needs can cause brownouts and blackouts during hot or cold weather extremes, per the report.
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Water usage is another concern — bitcoin mining in the United States consumed as much water as 300,000 households in 2021.
Despite promises of economic benefits, most operations create very few jobs. In Rockdale, Texas, a crypto mining company promised 350 new positions but actually created just 14, according to Earthjustice.
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