Ontario’s 25% Electricity Rate Hike Expected to Have Minimal Impact on Minnesotans

"Ontario's 25% Electricity Rate Hike Likely to Affect Minnesotans Little"

Minnesota Power buys minimal electricity from Ontario, but U.S. tariffs on Canadian energy could significantly impact the state’s energy costs and dependencies.

Emily Johnson11 March 2025Last Update : 2 days ago

Ontario’s 25% electricity tariff not likely to hurt Minnesotans much

www.startribune.com

Duluth-based Minnesota Power is connected to the Ontario grid via a transmission line, with the utility purchasing only a small portion of its electricity from Ontario. In 2024, Minnesota Power spent approximately $310,000 on electricity from Ontario while spending around $108 million on power from Manitoba Hydro.

6 Key Takeaways

Minnesota Power connected to Ontario grid
$310,000 electricity purchase from Ontario in 2024
$108 million spent on Manitoba Hydro last year
Uncertainty over tariff impact on electricity imports
Minnesota's energy dependencies highlighted by officials
Concerns over broader trade war consequences

Fast Answer: Minnesota Power purchased about $310,000 in electricity from Ontario’s grid in 2024. The utility’s significant power source remains Manitoba Hydro, costing roughly $108 million last year. Concerns arise regarding potential impacts of U.S. tariffs on Canadian energy imports amid ongoing trade tensions.

The relationship between Minnesota Power and the Ontario grid is limited but noteworthy. The utility relies primarily on Manitoba Hydro for its electricity needs, indicating a strong dependency on Canadian energy sources. This raises concerns among officials about how recent U.S. tariffs could affect future costs and availability of power.

Key facts include:

In 2024, Minnesota Power bought $310,000 worth of electricity from Ontario.
Last year, the company spent approximately $108 million on power from Manitoba Hydro.
A 10% tariff imposed by former President Trump may impact energy imports from Canada.

The implications of these tariffs remain uncertain as officials with the Midcontinent Independent System Operator (MISO) have not confirmed whether they apply to electricity imports. Pete Wyckoff, deputy commissioner for energy issues in Walz’s Department of Commerce, noted that while Ontario’s situation reflects broader trade challenges, Minnesota’s reliance on Canadian energy makes it vulnerable to such policies. Governor Walz expressed concern over potential retaliatory measures by other provinces like Manitoba.

Notice: Canadian readers should be aware that ongoing trade tensions may influence energy prices and availability across borders.

The dynamics between Minnesota Power and its Canadian suppliers highlight the complexities of international energy trade amidst evolving political landscapes. As tariffs continue to shape market conditions, stakeholders are urged to stay informed about potential changes affecting their energy sources.