Minnesota energy experts react to Ontario’s new tariffs
Minnesota's energy and Ontario’s new tariffs
Trade relations between the United States and Canada are worsening after Ontario leaders announced a 25% tariff on electricity provided to 1.5 million Americans – some of which will reside in Minnesota.
(FOX 9) - Trade relations between the U.S. and Canada are worsening, and Minnesota is now one of three states caught in the middle.
New electricity tariffs
What we know:
On Monday, Ontario’s premier announced, effective immediately, a 25% tax on electricity shipped to 1.5 million Americans in Minnesota, New York and Michigan.
In Minnesota, MN Commerce Department Deputy Commissioner for Energy Pete Wyckoff said the effect here will be almost non-existent, because Minnesota does not rely on Ontario for electricity.
"We don’t expect this move in and of itself to lead to something that people would notice right away, or even in the long-term, that people would notice… It would not be something that would drive Minnesotans to see much higher electric bills," Wyckoff said. "Ontario itself is just the tip of the iceberg, and it’s not a huge part of where we get our electricity."
Electric services company weighs in
What they're saying:
Minnesota Power declined an interview and instead sent FOX 9 a statement:
"Minnesota Power generates the majority of its energy supply here in northeastern MN and domestically. Our energy supply of thermal, wind, hydro, solar and biomass strengthens our ability to provide reliable service to the 150,000 customers we serve. We have on occasion utilized a small amount of electricity from Ontario. In 2024, those costs will total about $300,000 for the entire year. We did not buy electricity from Ontario for eight months of the year in 2024.
"We would expect the impact of the 25% surcharge to be negligible to our customers based on the small amount of electricity imported from Ontario."