The Canadian province of Ontario on March 9 began adding a 25% surcharge to all power exports to the U.S., a move that could cost up to $400,000 every day it remains in place. (See Ontario Threatens 25% Tariff on Electricity to US.) 

Ontario’s actions come a week after President Donald Trump implemented tariffs that include a 10% levy on Canadian electricity imports. Provincial Premier Doug Ford said the 25% tariff would remain in place until the U.S. drops its fees. (See ISO-NE Braces for Tariffs on Canadian Electricity.) 

“We will not back down, pausing some tariffs, making last-minute exemptions,” Ford said at a press conference. “We need to end the chaos once and for all. We need to sit down, work together and land a fair deal. A deal that gives businesses the confidence to invest; a deal that gives workers the security they need and deserve.” 

Ford told reporters he could ramp up the tariff or shut off power flows altogether if the trade dispute between the two nations continues to escalate. 

Ontario exports power directly to Minnesota, Michigan and New York, but its flows go beyond those states and into other markets, such as PJM, which can see 1,000 GWh per year of imports from the province — a fraction of a percent of its total consumption. Most of the exports to the U.S. go to either Michigan, at 5,440 GWh last year, or New York, at 6,518 MWh, while Minnesota gets just 145 GWh, according to Ontario’s Independent Electricity System Operator (IESO). 

MISO said in a statement that it still was reviewing the impacts of any electricity tariffs from Ontario, which would be assessed on the Canadian side of the border. 

“NYISO is analyzing the impacts of the order by the Ontario premier and working closely with the Independent Electricity Operator of Ontario to ensure a reliable grid and stable flows of electricity across interregional transmission lines,” the ISO said in a statement. “NYISO expects to have adequate reserves to meet reliability criteria and forecasted demand for New York.” 

Michigan Public Service Commission Chair Dan Scripps told a local NPR affiliate that he did not expect the tariffs to have much impact there because most of the power flows on to other states. 

“If a state like Michigan flows our power through and sells it, as the premier said, to Ohio, that means the impact of this surcharge is going to reverberate right across America … not just in Michigan … or New York or Minnesota, but now in all the states,” Ontario Minister Energy and Electrification Stephen Lecce said at the press conference with Ford. 

Power flowing from Michigan to Ohio means it crosses the seam into PJM, where an RTO spokesman said it does not have any direct links with the province so the extra fees will be handled elsewhere. 

While Ontario officials floated some pretty high bill impacts on Americans for the surcharge, the ultimate impact depends on the power markets. Ontario ships excess power south and generally is a price taker, and so its tariffs would influence wholesale prices only if the power was marginal supply for an RTO. 

Before Trump’s tariffs scrambled North American trade, the big news involving trades between Ontario and the U.S. was a new potential power line being developed by NextEra Energy to ship power directly to PJM under Lake Erie. The Lake Erie Connector made it through recent cuts from the U.S. Department of Energy to be included in one of three National Interest Electricity Corridors. (See DOE Cuts NIETC List from 10 to 3 High-Priority Transmission Corridors.) 

That underwater project initially was proposed by ITC, which upon filing for approval with Canada’s National Energy Board back in 2015 said the connector would “provide the opportunity to earn additional export revenues on surplus generation.”