TORONTO/CMEDIA: As part of Ontario’s initial suite of retaliatory measures to U.S. tariffs on Canada. the Province is reportedly applying effective March 10, a 25 percent surcharge on all electricity exports to the United States.
Affecting1.5 million homes and businesses in Michigan, Minnesota and New York, this surcharge will cost up to $400,000 every day the surcharge remains in place.
Ontario currently exports electricity generated across the province directly to Michigan, New York and Minnesota. Between 2021 and 2023, Ontario exported 14.6, 14.2 and 12.0 terawatt hours of electricity to the United States.
“President Trump’s tariffs are a disaster for the U.S. economy…life more expensive for American families and businesses…until the threat of tariffs is gone for good…We’ll stand strong, use every tool in our toolkit and do whatever it takes to protect Ontario,” said Premier Doug Ford
New market rules will be effective starting today requiring any generator selling electricity to the U.S. to add a 25 percent surcharge valued at $10 per megawatt-hour (Mwh) to the cost of power.
This will enable the surcharge to generate revenue of $300,000 to $400,000 per day to support Ontario workers, families and businesses.
Using every tool at its disposal, the government will protect Ontario workers and families from President Trump’s tariffs.
“We will not stand by as our vital electricity exports are taken for granted.. where prices are going up for families in America, Canada and the United States should be working together…ensure a prosperous future for both sides of the border” said Stephen Lecce, Minister of Energy and Electrification.”
The new surcharge is in addition to the Government of Canada imposing an initial round of $30 billion in retaliatory tariffs.
Besides removing all United States products from the shelves of LCBO, the largest buyer of alcohol in the world, costing American producers $1 billion in lost revenue, Ontario has also banned U.S. companies from participating in an estimated $30 billion worth of annual government procurement.
Ontario has 26 transmission connections with neighbouring jurisdictions: 11 with Quebec, three with Manitoba, one with Minnesota, four with Michigan and seven with New York.
