Canada raises electricity prices for three U.S. states
Kyiv • UNN
The province of Ontario has increased electricity rates by 25% for three U.S. states in response to Trump's trade restrictions. The surcharge will be 10 Canadian dollars per megawatt-hour for Minnesota, Michigan, and New York.
Canada raised electricity prices for three American states by 25% in response to President Donald Trump's tariffs. This decision was made by the government of Ontario, which exports electricity to the U.S. This was reported by Bloomberg, writes UNN.
Details
Starting Monday, March 10, the province of Ontario instructed its electricity system operator, Independent Electricity System Operator (IESO), to add a surcharge of 10 Canadian dollars (7 USD) per megawatt-hour on all electricity exported to Minnesota, Michigan, and New York.
Believe me, I don't want to do this. I feel very sorry for the American people. The only one to blame for this is President Donald Trump
Ford promised to make the decision to raise tariffs last week, after the U.S. imposed tariffs on Canadian goods. And although the White House agreed to exempt cars and some other goods covered by the free trade agreement between the countries, Ford promised to implement his initiative.
As noted by the publication, Ontario's decision may be more symbolic, as prices in U.S. electricity markets are based on short-term supply and demand. Therefore, buyers can choose from various suppliers and are not necessarily required to purchase electricity from Canada.
It is expected that the province will earn up to 400,000 Canadian dollars a day from the surcharge, which will be directed to support workers, families, and businesses in Ontario.
If premiers use tools that are in our favor, that's good news
Supplement
According to Bloomberg, in 2023 New York imported about 4.4% of its electricity from Canada. Minnesota and Michigan have even less dependence on Canadian suppliers, reports the Midcontinent Independent System Operator (MISO).
Ontario has a total of seven connections with New York, four with Michigan, and one with Minnesota.
Reminder
On March 4, tariffs imposed by the U.S. against Canada and Mexico came into effect. In response, Canada will impose a 25% tariff on American goods worth 155 billion dollars.
