I think we’re going to see more and more issues like this, which will only favor Cardano and POS instead of PoW.
Globally, untold amounts of money and energy have been spent on moving towards more energy efficient approaches over the past 20 years. This includes everything from fuel standards in the automotive industry to combined cycle generators that produce power for the grid. The US east and west coasts where most of the population and electric load resides have been implementing aggressive renewable energy and low carbon mandates over that time period as well. You can love or hate these policies. But one would be a fool to think the authorities will not clamp down on miners. I think we are going to see much more of this, especially if mining operations starts to affect power prices, and rate payers see prices spike.
I agree with most of what you said, but I don’t think authorities will clap down on miners here in the states. Electricity providers’ profits are decreasing year over year for most utilities in the states. Even though the demand for electricity continues to climb because of how efficient the grid has become. So miners show an opportunity of a substantial demand of energy which will increases profits and a reason to upgrade their infrastructure. Also, each states laws are different, some states have to provide a certain amount of electricity to all customers. As long as the Utilities infrastructure is not being strained, or they have enough revenue to upgrade their grid, Utilities will continue to provide power to miners.
I disagree. The rise of oil/gas prices (i.e. WTI @ 70$/barrel and rising) will have a huge impact on the cost of electricity. With the collapse of oil in 2014, miners and the general public in the US have enjoyed cheap energy and stagnant electricity prices for about 3-4 years now. But this will surely change. It’s all about supply and demand. Why wouldn’t the electricity supplier charge miners a premium, especially when their cost base is rising?
I think it depends on the location, which to some extent is what you are saying that this is a state by state issue. The east and west coasts will push back against this. Texas - no so much.
The public service commissions and similar who regulate this industry typically have a mandate to protect the rate payer, not the utility. So if the perception is that rates are going up because of miners, they’ll regulate against the miners. You have to permit the operation locally as well, so if it brings in enough of a tax base they’ll probably have no issues. But if it doesn’t they’ll decide not to issue the permits if there is a negative perception.