(Bloomberg) -- A Canadian province that exports electricity to the US raised power prices for three states by 25% on Monday in retaliation for President Donald Trump’s tariffs.
Most Read from Bloomberg
-
NJ College to Merge With State School After Financial Stress
-
Trump Administration Plans to Eliminate Dozens of Housing Offices
-
NYC Congestion Pricing Toll Gains Support Among City Residents
-
Buffalo’s Billion-Dollar Freeway Fix Is on Ice, But Not Because of Trump
Ontario directed its grid operator, the Independent Electricity System Operator, to add a C$10 ($7) per megawatt-hour surcharge to all power exported to Minnesota, Michigan and New York.
“Believe me when I say I don’t want to do this. I feel terrible for the American people,” Premier Doug Ford said. “It’s one person who is responsible. That’s President Donald Trump.”
Ford promised the levy last week after US tariffs against Canadian goods took effect, and vowed to follow through even after the White House agreed to exempt autos and some other goods covered under the countries’ existing trade agreement.
Ontario’s decision may be more symbolic than anything. Prices on the US electricity spot markets, the exchanges where the provinces sell their power, are based on short-term supply and demand. That means buyers can choose from a menu of sellers and don’t necessarily have to buy it from Canada.
The province expects to earn as much as C$400,000 per day from the surcharge, “which will be used to support Ontario workers, families and businesses,” the government said in a release.
“If the premiers use levers that are to our advantage, good news,” Melanie Joly, Canada’s foreign affairs minister, told reporters on Monday.
New York imported about 4.4% of its total electricity from Canada in 2023, according to Bloomberg calculations using data from the New York grid operator.
The percentage for the Minnesota and Michigan is even less, according to Midcontinent Independent System Operator, the region’s grid operator.
“In 2024, less than 1% of MISO’s total energy was supplied via Canadian imports and less than half of that came from Ontario,” Brandon Morris, a spokesperson for MISO, said in an email. “For context, that amount is equivalent to approximately one power plant. MISO manages the loss of power plants like this every day to ensure reliability across our footprint.”
Ontario has seven transmission connections with New York, four with Michigan and one with Minnesota.
--With assistance from Josh Saul and Mathieu Dion.
(Adds comment from foreign affairs minister in the seventh paragraph.)