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ARTICLE · 02 DECEMBER 2009

US Electricity Trade: Challenges And Opportunities

Norton Rose Fulbright Canada LLP
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Canada is the largest foreign supplier to the US of all forms of power generation – oil and gas, uranium and, of course, electricity. (More than $125B in exports annually.)

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Canada is the largest foreign supplier to the US of all forms of power generation – oil and gas, uranium and, of course, electricity. (More than $125B in exports annually.) There is a high degree of mutual economic dependence at stake reflecting the extent to which our two economies are closely integrated, more so in fact than any other two markets in the world.

Electricity trade, primarily hydropower from Canada to the US, is a key element of this unique market. It is cheap, abundant and clean. With the right policy and regulatory framework, we can ensure that electricity, particularly from hydro, will be an indispensable part of energy security for both Canada and the US. Most of this trade is the export of hydro electricity from Quebec into the Northeast and from Manitoba into the mid-west. The other part is the outcome of efficient load management through the North American grid.

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