Electricity & Canadian Tariffs

The Village of Hyde Park is closely monitoring the implementation of Canadian tariffs and evaluating the impact they may have on electricity prices. Vermont utilities rely on generation from Hydro Quebec for a portion of the state’s overall power supply. The Village has an entitlement of Hydro Quebec within its mix of power supply resources.

 

The implementation of tariffs on imports from Canada has caused some uncertainty as to whether they will apply to electricity entering the United States from Canada. While we await a determination on the applicability of tariffs to electricity, the Vermont utilities are working together with the state and VELCO to advocate on behalf of ratepayers and keep the lights on for all Vermonters. Though there are still many “unknowns” at this time, we are actively tracking the situation as it evolves.

 

In the event the tariffs do indeed apply to electricity purchased from Canada, the Village of Hyde Park will be obligated to pay for those charges within our existing revenues. It is important to note that while the utility's power supply costs could increase as a result of the implementation of the tariff, there will not be any immediate impact on customer bills. Vermont regulatory oversight does not allow for immediate rate changes on customer bills. The impact of the tariffs may be reflected in future rate cases.

 

Canada and Hydro Quebec are critical trade partners for the United States, Vermont, and Vermont utilities. We believe a strong cooperative relationship with our neighbor to the north is vital to ensuring affordable, sustainable, reliable power for our customers. We will continue to foster collaboration with our partners, despite any challenges these tariffs may present.

 

Fast Facts:

• The Village of Hyde Park only receives power from Quebec at this time, and does not receive power from any other Canadian Province, including Ontario who has stated that they may embargo power to the USA.

• There will not be any immediate impact on customer bills as any electric rate changes must go through a regulated process overseen by Vermont’s Public Utility Commission.

• Vermont utilities are collaborating with the state and VELCO to advocate on behalf of all Vermonters and mitigate potential Canadian electricity tariff impacts.