Ford enforces 25% electricity fee on U.S. states
Ontario Premier Doug Ford announced that he is moving forward with a planned 25 per cent electricity surcharge on U.S. states despite a temporary tariff reprieve from the Trump administration.
Ontario Premier Doug Ford announced that he is moving forward with a planned 25 per cent electricity surcharge on U.S. states despite a temporary tariff reprieve from the Trump administration.
Speaking alongside Energy Minister Stephen Lecce at Queen’s Park, Ford said he would “not hesitate to increase this charge or shut the electricity off completely.”
He explained that Ontario could slow hydroelectric production to reduce surplus energy, effectively ending electricity exports to the U.S. However, he acknowledged that nuclear reactors could not be shut down as easily, as they take months to power down.
Ford initially announced last week that the surcharge would take effect today, reaffirming his commitment to the measure until a permanent trade agreement is reached with the U.S.
According to a Mar. 4 letter from the Ontario government to U.S. officials, the surcharge will be paid by utilities in New York, Michigan and Minnesota, which currently purchase electricity from Ontario.
In 2022 the total amount of electricity sent from Ontario to Minnesota, New York and Michigan was 311 terawatt-hours.
That figure remained consistent in 2023 when Ontario’s electricity accounted for 8.8 per cent of New York’s consumption, 14.9 per cent for Michigan and 21.1% for Minnesota.
Ford estimates that the surcharge will generate $300,000 to $400,000 in daily revenue from 1.5 million American customers, stating that these funds will be “used to support Ontario workers and families”.
Ford and Lecce said they want to address uncertainty in the trade relationship with the U.S., which they described as “on again (and) off again.”
At the start of his remarks, Ford congratulated Prime Minister-designate Mark Carney on his Liberal leadership win and said he is “hoping for renewed federal leadership.” He also thanked Prime Minister Justin Trudeau, claiming Trudeau “was willing to put ideology and party aside for the good of the country.”
Ford said he expects a federal election to be called within 10 to 15 days.
Ford better not count his $300,000 to $400,000 daily eggs before they hatch. Americans have natural gas and they are not afraid to burn it. Enbridge is wildly up in the stock market and with any luck some Alberta companies will enjoy some extra sales too.
Wouldn't it be interesting if Michigan turned off the taps to line 5 &9 where oil flows from the US into Ontario and the hallowed province.