Does Canada supply electricity to US? What to know after lawmaker's threat of surcharge, shutoff

USA Today

06-03-2025

Does Canada supply electricity to US? What to know after lawmaker's threat of surcharge, shutoff The Canadian government announced on Tuesday that it will move forward with 25% tariffs on billions worth of goods imported from the US, including electricity.
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Canadian, Mexican and American industries react as tariffs take effect
North Americans in the auto, agriculture and toy industries shared their reactions to new tariffs.
With President Donald Trump imposing 25% tariffs on goods imported from Canada and Mexico, leaders from both countries have responded in kind, with one even threatening to charge more for or shut off Michigan's, New York's and Minnesota's electricity.
Ontario Premier Doug Ford shared an X post on Tuesday stating that he spoke with leaders in New York, Michigan and Minnesota, "putting them on notice" that his province is prepared to add a 25% surcharge on the electricity it exports to their states if Trump's tariffs remain in place.
"If we have to, we won't hesitate to increase the charge or shut the electricity off completely," Ford wrote in the X post.
During Trump's formal address before a joint session of Congress on Tuesday, he said the "tariffs are about making America rich again and making America great again." The 78-year-old cautioned that "there will be a little disturbance" due to his tariffs, but he then said, "We're OK with that. It won't be much."
The Canadian government announced on Tuesday that it will move forward with 25% retaliatory tariffs on billions worth of goods imported from the U.S., beginning immediately with a list of goods worth $30 billion. The counter-tariffs will be increased to $155 billion if the current U.S. tariffs remain in place, and this number could rise even more if new tariffs are imposed, Canadian officials said.
Here is what to know about the statement made by Ford, and just how feasible it is for each of the three states.
What will happen to New York's electricity?
In a statement released late last February, the New York Independent System Operator (NYISO) said, "The U.S. and Canada have one of the most integrated electric grids in the world, allowing system operators in both countries to pool resources for improved reliability and economic efficiency."
"We are in close and regular contact with Hydro Quebec and Ontario's Independent Electricity System Operator," the statement continued. "The NYISO anticipates having adequate supplies to meet expected demand on the system.'
The NYISO called the "reliable (and) uninterrupted" flow of electricity across the Canadian interties "critical to protect the health, safety and welfare of New York citizens, residents across the Northeast U.S., and the citizens of Canada."
"The NYISO and neighboring system operators have serious concerns that applying export tariffs to electricity may have serious adverse effects on reliability and wholesale electric markets," according to the not-for-profit corporation.
With the Canadian tariff order going into effect on Tuesday, the NYISO said in its statement that it was unclear whether imports of electrical energy from Canada would be impacted. When contacted by USA TODAY on Wednesday, a spokesperson for the corporation said it had "no further comment at this time," but would provide more updates as the process continues.
What will happen to Michigan's electricity?
Michigan will be affected if Ford's threat is carried out, but the state does not consume most of the considerable amount of electricity it receives from Ontario, Dan Scripps, chair of the Michigan Public Service Commission and a former state representative, told the Detroit Free Press, part of the USA TODAY Network.
The electricity from Ontario goes through Michigan and into several other states that together make up the Eastern Interconnection, which is an electrical grid that stretches from central Canada to states east of the Rocky Mountains, according to Scripps.
Michigan Utilities, DTE Energy and Consumers Energy generate a lot of their own electricity or have long-term purchase agreements with wholesale markets, Scripps added.
Although Michigan may not get a ton of power from Canada, Scripps said it's difficult to determine the impact of Ford's threat, but he did acknowledge that customers in the state will likely see an increase in power prices.
"On the reliability side, I have bigger concerns,' he said. 'This flow, called the Lake Erie flow loop, is beneficial for grid reliability on both sides of the (U.S./Canada) border."
A disruption of the flow of power could increase the risk of power outages across the U.S. and Canada, according to Scripps.
What will happen to Minnesota's electricity?
Utility officials and regional grid operators in Minnesota told the Star Tribune that Ford's threat is unlikely to have serious consequences for the state.
The Minnesota officials' comments come after the North American Electric Reliability Corporation (NERC) reported that the state's electric grid is at high risk for power shortages. The NERC's 2024 Long-Term Reliability Assessment, which provides projections for 2025 to 2034, said the region Minnesota is a part of is the only one of 11 regions that have a ranking of a 'high' risk assessment.
"High-risk areas are likely to experience a shortfall in electricity supplies at the peak of an averagesummer or winter season," the NERC said.
In a statement released in January, Darrick Moe, the president and CEO of the Minnesota Rural Electric Association, said, "We must heed the warnings issued by our not-for-profit regulatory authorities about the future of power supply in our region. We can't continue to shut down plants and delay the permitting of generation resources that will help shore-up Minnesota's reliability.'