In a move that could hike power costs 60 percent for businesses that mine kryptocurrencies, the New York Public Service Commission (PSC) gave municipal power authorities permission to charge those businesses more for electricity than other, less energy-intensive customers.

Cryptocurrency mining, in which miners solve complex math problems to earn currencies such as Bitcoin, is an energy hog. “As a direct result of the intense computer data-processing efforts, these companies are using extraordinary amounts of electricity — typically thousands of times more electricity than an average residential customer would use,” the PSC said in a release announcing the decision.

The commission was responding to a request from the New York Municipal Power Agency (NYMPA). NYMPA members were concerned that cryptocurrency miners were using up low-cost energy that is supposed to be used by job-creating businesses.

“NYMPA’s petition noted that these customers do not bring the economic development traditionally associated with similar load-sized companies,” the PSC reported. 

Further, the energy use by cryptocurrency miners is so intense that it has driven up the cost of energy for neighboring businesses and residents.

According to the PSC, monthly bills for the average residential customer in Plattsburgh rose $10 in January because of the demand created by two cryptocurrency companies operating there.

Cryptocurreny mining is so energy intensive, powering racks of computers in a server farm, that in some cases, the business can account for one-third of total energy demand, the PSC said. In comparison, it noted that a large paper manufacturer uses only one-fourth as much power per square foot as a cryptocurrency company.

NYMPA, which is headquartered in DeWitt, told the PSC that there are at least three cryptocurrency companies operating in upstate New York. 

NYMPA General Manager Tony Modafferi says that job-creation claims made by cryptocurrency companies when they seek to build in an area with low-cost energy can be misleading. While a factory may bring hundreds of permanent jobs, cryptocurrency mining requires construction workers, installers and others to get things running, but few permanent jobs. “Let’s justify what the jobs are,” he says.

The ruling will allow municipal power authorities to set a separate rate for high-density load customers that do not qualify for economic-development assistance and have demand that tops 300 kilowatts. That, the PSC said, is far higher than traditional commercial customers use.

The rates could rise starting in March, while rates for other customers will return to prior levels, the PSC said. That change can bring significant results. The PSC said that had the newly allowed rates been in place in January, the cryptocurrency companies in Plattsburgh would have paid 60 percent more for electricity.

“We always welcome and encourage companies to build and grow their businesses in New York,” said PSC Chair John B. Rhodes. “However, we must ensure business customers pay an appropriate price for the electricity they use. This is especially true in small communities with finite amounts of low-cost power available. If we hadn’t acted, existing residential and commercial customers in upstate communities served by a municipal power authority would see sharp increases in their utility bills.”

Cryptomining uses a lot of electricity

While some are content to trade cryptocurrencies, an entire industry has been created that mine Bitcoins by solving complex equations. To solve the equations, cryptocurrency companies run server farms with hundreds of computers.

As Bitcoin’s value skyrocketed in the past year, it made economic sense to expand operations, adding equipment and hiking electricity use. Researchers have estimated the cost of electricity per Bitcoin mined at far less than the current market value of the cryptocurrency.

Morgan Stanley Research estimates demand for electricity from cryptocurrency mining had grown to rival the demand of some nations. “Currently, global power demand from cryptocurrency mining hovers at about 22 terawatt hours,” the firm reported in January. That amount of electricity — 22 trillion watts — is roughly the same as used by the country of Ireland. 

— Charles McChesney

KeyCorp (NYSE: KEY) recently announced that Bruce Murphy, head of corporate responsibility, plans to retire on July 1. Key added that Don Graves will succeed Murphy and assume responsibility for Key’s corporate responsibility and community relations functions.

Murphy, who joined the banking company in 1990, has been head of corporate responsibility since 2013. 

“Bruce’s focus on balancing mission and margin has spanned across many areas of Key including the KeyBank Foundation, fair and responsible products and community development lending,” Beth Mooney, chairman and CEO of KeyCorp. “Key is a stronger bank and community partner thanks to Bruce’s tireless work. He will leave a lasting legacy at KeyBank.”

Among Murphy’s “many accomplishments” include the development and execution of its $16.5 billion national community benefits plan, which includes commitments for community development lending and investing, mortgages to low-to-moderate income families, small business-lending, and philanthropy, Key said. 

Graves joined Key in 2017 as senior director of corporate community initiatives & relations. In this role, he has worked to integrate Key’s strategies between community outreach efforts and public officials, trade groups, and agencies that support the opportunities and obligations of the banking company’s national community benefits plan. Prior to joining Key, Graves served as counselor and domestic and economic policy director for previous U.S. Vice President Joe Biden. He provided advice on a range of policy issues including ways to create jobs and opportunity for the American people. 

Graves was previously appointed by President Barack Obama as executive director of the president’s Council on Jobs and Competitiveness at the White House and was also appointed by Obama to lead the federal government’s efforts in the city of Detroit.

“Don’s focus on community transformation and engagement has given him the depth and breadth of experience to effectively lead Key’s Corporate Responsibility organization. I look forward to Bruce and Don partnering closely over the next several months to ensure a smooth transition,” said Mooney.

KeyCorp’s roots trace back 190 years to Albany, New York. Its KeyBank unit today ranks second in deposit market share in the 16-county Central New York area.   ν

SYRACUSE — The Financial Planning Association (FPA) of Central New York recently announced its board of directors for 2018. It appointed the following individuals:

• President — Joe Lazzaro, CenterBridge Planning Group

• Vice President — Bryan Parmley, ENV Financial Services

• Treasurer — Michael Doolittle, Northwestern Mutual

• Secretary — Thomas Griffith, Central New York Community Foundation, Inc.

• Past President — Uri (Chip) Doolittle 5th, Upstate Financial Network LLC

• Board Member — Carl Dattellas, Diversified Wealth Strategies

• Board Member — Mark Hills, Upstate Financial Network LLC

• Board Member — Anthony Hinds-Fritz, Evolution Retirement Solutions, LLC

• Board Member — Daniel P. Jeffery, Best Times Financial Planning

• Board Member — Leyla Morgillo, Madison Financial Planning Group

• Board Member — Tom Mourdant, Empower Retirement

• Board Member — Richard Naylor, CE Live

• Board Member — Alicia Spevak, Lee E. Kalin & Associates

The FPA says it is the largest membership organization for personal financial-planning experts in the U.S. and includes professionals from all backgrounds and business models. The Central New York chapter of the FPA has more than 110 members. 

New York Governor Andrew M. Cuomo recently announced that IEC Electronics Corp. will invest more than $20 million to relocate and construct a new “state-of-the-art facility” in Newark in Wayne County. 

The electronics manufacturing company plans to create up to 362 new jobs and retain 463 positions at the new 150,000-square-foot facility located at the Silver Hill Technology Park, according to a news release from the governor’s office.

IEC Electronics had considered moving out of New York state but chose to stay and expand in the region after receiving state and local financial support and incentives.

Empire State Development is providing up to $2 million through a Finger Lakes Forward Upstate Revitalization Initiative grant and up to $3 million through the Excelsior Jobs Program in exchange for IEC’s job-creation commitments, the release stated.

Rochester Gas & Electric and the New York State Electric and Gas Corporation are offering up to $670,000 in assistance for the project. Wayne County is also providing incentives for the venture and the Greater Rochester Enterprise was “instrumental in helping the company remain in the Finger Lakes region,” according to the governor’s office. The total cost for the relocation project is approximately $22 million. 

IEC plans to move to and begin operations at the new facility in mid-2019. 

“IEC has made its home in Newark since 1973 in a 100 years old former paper factory building that would require extensive capital investment to bring it to the next level. Constructing this new building enables us to design, from the ground up, a state-of-the-art and advanced technology facility that can support our growth as a leading U.S. based provider of electronic manufacturing design and production services for life-saving and mission critical products,” IEC Electronics President & CEO Jeffrey T. Schlarbaum said in the governor’s release.

For 50 years, IEC Electronics has been providing manufacturing products and services to companies in the medical, industrial, aerospace, and defense sectors. The company is a provider of electronic contract-manufacturing services such as printed circuit-board assembly, cable and wire-harness assembly, and precision metalworking for life-saving and mission critical products, according to the release. The firm specializes in providing technical solutions for the custom manufacturing of complex full-system assemblies with advanced engineering support and laboratory services, including risk mitigation related to counterfeit component detection.     

SYRACUSE — Peters & Associates, CPAs, P.C. (P&A), a Syracuse–based accounting firm, recently announced a pair of acquisitions it made in Pulaski and Utica toward the end of 2017.

P&A acquired Shirley Kessler Accounting and Tax Service of Pulaski and Robert A. Deschano, CPA, P.C. of Utica.

Pulaski 

 P&A has provided services in Pulaski for more than 20 years, but is now located at 4759 Salina St. in the Colosse Cheese store building in downtown Pulaski, according to a company news release. 

“They’re very complementary with us,” Mark Peters, P&A’s president, said of Shirley Kessler Accounting. “We specialize in local businesses that want hands-on service from a firm that concentrates on them. We do not work with large companies that are required to have annual audits. Clients want the same individual handling their accounting and taxes each year. However, since we employ 30 people, we have the expertise to handle any complex issues that may arise.”

Matt Hill will lead the P&A Pulaski office. His wife purchased the Colosse Cheese store in 2014. The merger of the two accounting firms led to immediate growth with the hiring of an additional accountant for the Pulaski office. 

The merger closed last October. P&A didn’t disclose financial terms of the transaction. P&A has retained Shirley Kessler as part of the combined firm. 

Utica

Peters & Associates, located at 1008 Cornelia St. in Utica, has provided accounting and tax services in Utica for more than 40 years. The acquisition of Robert A. Deschano, CPA, P.C. is “an opportunity to capitalize on the similarities between the practices” and is expected to boost P&A’s revenue by more than 10 percent, the firm said in a separate news release. 

The merger closed in December. P&A didn’t disclose financial terms of the transaction. The firm has hired an additional accountant in Utica.

P&A has also previously acquired the practice of Robert Smoral, CPA of Camillus in 2012 and completed a merger with Moore & Hart, CPAs of Utica in 2015.

Peters & Associates is headquartered at 731 James St. in Syracuse.   

New York Attorney General Eric T. Schneiderman recently released the list of the top 10 consumer-fraud complaints received by his office in 2017. He also offered some tips for New Yorkers on how to avoid future scams.

The attorney general’s office analyzed the consumer complaints received statewide throughout 2017. For the 12th year in a row, Internet-related complaints topped the list with 5,153 complaints, according to a news release the office issued. This category covered issues including child safety, privacy, civil rights, spyware, spam, consumer fraud, and free speech. 

Internet-related complaints were followed by 3,188 automobile complaints, which involved sales, services, financing, rentals, and repairs. Consumer-related services ranked third with 2,463 complaints, which included complaints concerning alarm companies, dry cleaners, furniture repair and refinishers, restaurants, hair and nail salons, movers, watch repairs, and other services for personal household use. Consumer-related services was followed by 1,961 landlord/tenant complaints such as rent security deposit issues and allegations of tenant harassment. 

Rounding out the top five, there were 1,827 utilities-related complaints, which included reports on cable and satellite companies, energy services and suppliers, and wireless and residential phone carriers. 

“The best weapon against fraud is an informed consumer,” said Schneiderman. “Fraudsters will always look for new ways to line their pockets at the expense of unsuspecting consumers. I encourage New Yorkers to educate themselves — and to continue reporting scams to my office, so that we can continue to crack down on scammers seeking to take advantage of New York consumers.”

The following is the 2017 list of the top 10 consumer complaints by category:

Category Number of Complaints

1. Internet (Internet services & service providers; data privacy & security; child safety; consumer frauds) 5,153 

2. Automobile (buying; leasing; repair; service contracts; rentals) 3,188

3. Consumer-related services (security systems; restaurant/catering services; tech repairs) 2,463 

4. Landlord/Tenant disputes (security deposit releases; tenant harassment) 1,961 

5. Utilities (wireless and residential phones; energy services & suppliers; cable and satellite) 1,827 

6. Credit (debt collection; credit-card billing; debt settlement; credit repair; credit-reporting agencies; identity theft) 1,436

7.Retail sales (any sale of goods for personal household use: food, clothing; rent-to-own) 1,285

8. Home repair/Construction (home-improvement services not delivered or done poorly) 982 

9. Mail order (purchases made online or from a catalog) 850 

10. Mortgage (mortgage modifications; mortgage and loan broker fraud; foreclosures) 799 

The state attorney general also offered a list of tips all consumers should use to protect themselves and their families. Here are his tips for the top three items on the complaint list:

Internet

It’s important to ask the right questions when choosing an Internet plan that’s appropriate for your needs and to ensure you are getting the Internet speeds you were promised, according to Schneiderman. If you are not receiving the speed you are paying for, call your Internet-service provider to find out why. 

Do not conduct any transactions that involve personal, financial, or credit-card information while using an open and unsecured Wi-Fi connection — identity thieves often stake out open networks seeking victims. Scammers also use variants of a well-known company’s Internet address to try to lure users into visiting fake websites that are then used to steal consumers’ personal information.

Automobile 

New York’s New and Used Car Lemon Laws provide a legal remedy for buyers or lessees of new cars that turn out to be lemons. You may be entitled to a full refund if your car does not conform to the terms of the written warranty and the manufacturer or its authorized dealer is unable to repair the car after a reasonable number of attempts, per Schneiderman’s office. The law allows consumers to shop around for the best deal when leasing a car, set limits on early termination, and gives the attorney general’s office jurisdiction to resolve excess wear-and-tear disputes. 

Consumer-related services 

When hiring people to provide services ranging from home repair to snow-removal to party-planning, make sure to use a written contract for all services that clearly defines restrictions and obligations of both the consumer and service-provider. Consumers should shop around, get estimates from at least three vendors, and check with the Better Business Bureau and other references to confirm the company is reliable and reputable.

Although not in the top 10, the attorney general’s office continues to receive consumer complaints about common phone schemes, including the IRS scam.

IRS scam

In the IRS scam, the caller poses as a U.S. Treasury Department, IRS, or other government official, demanding payment for unpaid taxes and threatening consumers with arrest if they do not pay up, Schneiderman’s office said. These scammers often use fake government logos in their email and caller ID spoofing so that the victim’s caller ID box says “Internal Revenue Service” or displays the phone number of the IRS.

Beware of scammers posing as government officials in phone calls or emails. The IRS will never demand immediate payment or payment information over the phone. The state attorney general advises to not engage this type of caller or provide any personal information, and report the call to his office by submitting a complaint or calling its consumer hotline at (800) 771-7755. Scams should also be reported to the U.S. Treasury Inspector General for Tax Administration at (800) 366-4484.