Canada Places Surcharge On Electricity Across Three U.S. States

New market rules are going into place requiring Canadian electricity sellers to add a $10 per megawatt-hour surcharge.

Ontario has followed through with its threat to impose tariffs on electricity for three U.S. states.

The surcharge will affect electricity sales for 1.5 million homes and businesses across Michigan, Minnesota and New York. In total, it could cost up to $400,000 per day.

New market rules are going into place requiring Canadian electricity sellers to add a $10 per megawatt-hour surcharge, equivalent to a quarter of the electricity’s average value, to the cost of power for sales to the U.S..

The additional charges are a response to 25% tariffs on Canadian and Mexican imports to the U.S.
announced last week by the Trump administration.

Tuesday morning, President Trump said he would respond in kind with a 25% tariff on Canadian electricity.