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https://oilprice.com/Energy/Energy-General/Ontario-Raises-US-Power-Prices-by-25-for-Three-States.html
''Ontario Raises U.S. Power Prices by 25% for Three States''
By Charles Kennedy - Mar 10, 2025, 3:00 PM CDT
Ontario has implemented a 25% surcharge on electricity exports to Minnesota, Michigan, and New York in response to U.S. tariffs imposed by President Donald Trump. According to Bloomberg, the provincial government directed its electricity operator, the Independent Electricity System Operator (IESO), to add a C$10 ($7) per megawatt-hour levy on power sent to these states.
Ontario Premier Doug Ford expressed regret over the measure but blamed Trump directly. “Believe me when I say I don’t want to do this. I feel terrible for the American people. It’s one person who is responsible. That’s President Donald Trump,” he said.
The surcharge is part of Ontario’s retaliation after the U.S. imposed new tariffs on Canadian goods. Despite recent White House exemptions for autos and other items under existing trade agreements, Ontario followed through on its threat.
Last week, Premier Ford promised to keep U.S. alcohol off the shelf in retaliation to the 25% import tariffs imposed by the Trump.
While significant, the move is largely symbolic since U.S. electricity spot markets allow buyers to choose from multiple suppliers, potentially bypassing Canadian electricity.
Ontario estimates the surcharge could generate C$400,000 per day, with proceeds going to support local workers, families, and businesses.
Canada’s Foreign Affairs Minister, Melanie Joly, endorsed the move, saying, “If the premiers use levers that are to our advantage, good news.”
''New York relied on Canadian imports for about 4.4% of its electricity supply in 2023, while Minnesota and Michigan imported even less, according to data from the Midcontinent Independent System Operator.''
According to Bloomberg data, Canadian electricity exports to the U.S. had already fallen significantly since 2022 as a result of the drought in Quebec in 2022 and 2023.
By Charles Kennedy for Oilprice.com