A political dispute could put both the power supply and billions in provincial revenue at risk

Ottawa has been pushing to diversify trade from United States markets, but geography trumps policy when it comes to electricity. Our power grids intertwine so deeply that this is no ordinary trade relationship. They keep the lights on in both our countries.

Electricity has dodged tariff bullets so far, but three longstanding trade irritants could explode if tensions escalate. Americans maintain longstanding complaints about subsidized provincial utility rates, claim limited access to Canadian markets while we sell into theirs, and cross-border transmission projects bog down in red tape.

Several provinces depend on U.S. imports. New Brunswick leads, followed by P.E.I., Nova Scotia and Ontario. They need American power for peak demand and maintenance backup.

Cross-border electricity imports provide grid balancing, cheaper energy access, emergency backup and seasonal optimization. Losing imports means compromised reliability, pricier domestic generation, reduced industrial competitiveness and higher consumer energy costs.

Canada’s power grid isn’t self-contained. It depends on the United States more than most people realize.Image by Nhan Hoang

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