New York City Electricity Spot Price Spikes By 1,000%

By the look of things, Washington is not the only area where electricity prices are on the rise. New York City saw a 1,000% electricity price spike due to a lasting heatwave after a thunderstorm. This is not good news for anyone who is mining Bitcoin or another cryptocurrency in this city, as their electricity bill will go up significantly.

Electricity Prices Spike in New York City

When nature strikes, it will impact many different aspects of life. A streak of hot weather followed by a thunderstorm caused New York City electricity prices to spike all of a sudden. Things got so bad, the spot price per megawatt hour reached US$1,042 yesterday afternoon. Compared to the average price of US$94, this is more than 1,000% price increase, to say the least.

While this may not affect New Yorker’s electricity bills directly, it is a worrisome event. Luckily for residents, the New York ISO will do what they can to keep the prices as steady as possible. Spot prices mostly serve as an indicator as to how the situation is evolving, but it does not represent the price consumers will be charged.

Then again, the overall electricity usage in New York City is still alarmingly high. Air conditions are trying to fight off the heatwave that is still present. Moreover, more thunderstorms are expected over the next few days, which may knock out transmission lines and generators. If the electricity market becomes unreliable, further price hikes are on the horizon.

To make matters even worse, Con Edison – a local power utility company-  has advised consumers to reduce their electricity usage for the time being. That is much easier said than done, though, particularly during this heat wave. Staying cool is of the utmost importance, and air conditioners are the best way to go

This is another reason as to why decentralization of the energy grid is so important for the future. Not only should that approach be able to thwart any outage issues with relative ease, but it may also provide more competition in the market. Both outcomes are very positive trends for individual consumers, and in particular, Bitcoin miners in New York City.

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