Ontario Premier Doug Ford’s threat to slap a 25 percent surcharge on electricity bound for states like New York went into effect on Monday, and by Tuesday afternoon its been suspended.
Analysis of 2023 data from New York Independent System Operator and the U.S. Energy Information Administration shows the Empire State gets 3,976 gigawatt hours of energy from Ontario, or roughly 2.8 percent of its electricity. New York leads the pack of states that receive power from Canada, as Quebec also provides some to the grid, although they haven't announced an energy tariff.
Ford announced the suspension in a joint statement following a conversation with U.S. Commerce Secretary Howard Lutnick. The move was made as a result of an agreement for a meeting in Washington between Ford and Lutnick to discuss USMCA trade agreement renewals ahead of a April 2 deadline.
The conversation followed statements made by President Donald Trump on Truth Social, where he lambasted the surcharge put on by Ford. Trump had threatened to double steel and aluminum tariffs if Ontario continued. The president also renewed his "fifty-first state" dialogue.
In a statement at the time of the surcharge, New York ISO said they would continue working with their Ontario counterparts to "ensure a reliable grid and stable flows of electricity across inter regional transmission lines."
They went on to say they expect to have adequate reserves to meet reliability criteria and forecasted demand for New York.
Governor Kathy Hochul and Senator Chuck Schumer announced steps to review the impact the surcharge would have on the state's energy supply, as well as possible contingency plans. Hochul is also mulling a notification line on utility bills, which will say "Trump tariff" next to the surcharge.
It's unclear if the state will proceed with this review of the power grid, but they did say it would be complete in seven days.
