MASSENA -- Citing high electricity prices in Plattsburgh, cryptocurrency mining firm Cointmint plans to move their operation from that city to Massena for the winter.

The company’s statement said in February they paid more than double the wholesale market rate per kilowatt hour.

In 2018, the Public Service Commission began to allow municipal power authorities to charge higher rates to companies, such as cryptocurrency miners, who use large amounts of power. This is so the increased power consumption doesn’t affect the rates for regular residential and commercial customers.

Cryptocurrency mining involves using powerful computers running online 24 hours a day, seven days a week, to solve math problems that encrypt and unlock cryptocurrency on what's known as a blockchain. The unlocked and encrypted portions of the blockchain are then sold or traded, similar to commodities like gold.

"Last winter season, Plattsburgh Municipal Lighting Department charged NCDC and all of its ratepayers effective KWh rates that materially exceeded the NYISO's wholesale market rates via a purchase power adjustment charge for supplemental power purchases," Prieur Leary, Coinmint's co-founder, claimed in a prepared statement. "When this charge was assessed, all of PMLD rate payers—not just NCDC—paid a per KWh charge that materially exceeded the wholesale market rate. We have done everything we can, including petition the Public Service Commission for assistance on this situation, but, to date, there is no resolution. As such, we are left with no alternative but to migrate operations for the 2019-2020 winter season or until the matter is resolved."

Coinmint says they are choosing Massena because the Massena Electric Department has withdrawn from the New York Municipal Power Agency, the same agency from which Plattsburgh Municipal Lighting Department purchases its supplemental power.

“As a result of Massena Electric's withdrawal from NYMPA, its customers are no longer subject to NYMPA's above-market rates,” Coinmint’s statement says.

Coinment says they will maintain their Plattsburgh facility throughout the 2019-2020 winter season and plans to re-start its operations there in March 2020. All Plattsburgh staff members are being offered positions in the Massena facility, the company said.