New York Gov. Kathy Hochul has directed a number of state agencies to, among other things, implement a comprehensive analysis of how tariffs "will increase costs for electricity, natural gas, heating fuels and other essential energy sources across the state."
Hochul’s March 10 announcement came on the same day that the Ontario government said it has applied a 25 per cent surcharge on all electricity exports to the United States as part of the province’s initial suite of retaliatory measures to U.S. tariffs on Canada.
On March 11, President Trump said he would double the tariffs imposed on steel and aluminum imported from Canada, NBC News reported. NBC reported that Trump said that the tariffs would go from 25% to 50% starting Wednesday in response to the Ontario electricity surcharge.
Reflecting the fluid nature of developments tied to the ongoing tariff situation, Ford and U.S. Secretary of Commerce Howard Lutnick issued a joint statement on the afternoon of March 11 that said that Ontario had agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota.
The statement said that Lutnick agreed to officially meet with Ford in Washington on Thursday, March 13 alongside the United States Trade Representative to discuss a renewed United States-Mexico-Canada Agreement ahead of the April 2 reciprocal tariff deadline. In response, Ontario agreed to suspend the surcharge.
Prior to the issuance of the joint statement, Hochul directed the New York Department of Public Service, the New York State Energy Research and Development Authority (NYSERDA), and the state’s Division of Homeland Security and Emergency Services to undertake a thorough review, which will be completed within seven days, and include:
- A comprehensive analysis of how the tariffs will increase costs for electricity, natural gas, heating fuels and other essential energy sources across the state.
- An assessment of supply chain vulnerabilities, particularly for communities in the North Country and other areas with limited alternatives.
- A clear evaluation of the impact on ratepayers and businesses, including expected price increases and affordability concerns.
- A review of New York’s contingency plans as a result of Canadian retaliation on its energy exports.
- An examination of the feasibility of adding a one-line “Trump Tariff” cost indicator on utility bills, "ensuring that New Yorkers can see exactly how much this federal policy is costing them each month."
Hochul detailed the directives in a letter sent to NYSERDA and the DPS by her and U.S. Sen. Charles Schumer (D-N.Y.), who is Senate minority leader.
Michigan
When asked for comment by Public Power Current, the Michigan Public Service Commission said that it is “not aware of any Michigan utilities purchasing power from Canada.”
The PSC said it is “concerned about the impacts across the energy sector, including both pricing and reliability concerns. While the vast majority of Michigan’s electricity is either produced by the electric utilities or purchased under long-term power contracts, the imposition of these tariffs could have some impact on prices in the regional energy markets, though the ultimate impact on Michigan customers is likely to be small.”
The PSC said: "Of greater concern is the stability of the electric grid. There are significant flows across the border because of the interconnected grids between the two countries. These loop flows of electricity around Lake Erie happen because of the physics of managing electricity load. Michigan is part of the Midcontinent Independent System Operator, the regional transmission operator for 15 states and the Canadian province of Manitoba. MISO and Ontario’s regional transmission operator, Independent Electricity System Operator (IESO), coordinate flow levels. Any action to limit or disrupt these flows would remove a layer of protection and make all of us – Canadians and Americans alike – more vulnerable to grid-scale outages."
