Ontario briefly imposed a charge on electricity exports to the United States on March 10, 2025, but suspended it the next day. The charge was $10 per megawatt-hour—not a changing 25% rate—and the official material does not establish that U.S. household electricity bills rose by 25%.
What happened?
Ontario announced a surcharge on electricity exports to the United States as a response to U.S. tariffs on Canada. The province said Ontario power served 1.5 million homes and businesses in New York, Michigan and Minnesota. The measure was provincial, not a Canada-wide tax on household electricity. Government of Ontario announcement
Was it really a 25% tariff?
“25%” was the public shorthand. The Independent Electricity System Operator (IESO), which operates Ontario’s electricity market, implemented a fixed Tariff Response Charge of $10 per megawatt-hour. IESO described that amount as approximately 25% of the average value of the electricity. Because it was a flat per-MWh charge, it did not automatically rise or fall with each market price. IESO operational notice and market-rule information
Which electricity exports were covered, and who paid?
The charge applied to electricity exports destined for the United States, including power routed through another Canadian province such as Quebec or Manitoba. In the wholesale settlement process, the U.S. importing entity would pay the full cost, including the charge. The Ontario market participant exporting the electricity would receive that amount, and IESO would collect the charge from the participant on Ontario’s behalf. It appeared in market invoices or settlement statements for participants making exports. IESO market information
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When did the charge take effect, and when was it suspended?
IESO says the charge began on March 10, 2025. Its updated FAQ says the $10/MWh amount applied from Hour Ending 12 on March 10 through Hour Ending 16 on March 11. On March 11, after a new ministerial letter, IESO immediately suspended implementation and set the charge to $0, subject to further direction from the Minister. IESO’s directives index lists the suspension and the possibility of reinstatement. IESO FAQ and market-rule information · IESO ministerial directives
Did it raise household electricity bills by 25%?
The available IESO material describes the charge in wholesale export settlements; it does not quantify any change to an individual customer’s retail bill. It therefore does not support saying that American households paid 25% more for electricity. The announcement concerned export transactions, not a documented 25% household-bill increase.
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How does this relate to Canada’s tariffs on U.S. goods?
Ontario’s electricity-market charge was separate from Canada’s federal counter-tariffs on U.S. goods. On March 4, 2025, the federal government announced 25% counter-tariffs initially covering $30 billion in U.S. goods, with possible expansion to $155 billion if U.S. tariffs continued. Canada’s response page says most March 2025 counter-tariffs on U.S. imports were removed effective September 1, 2025, while measures on steel, aluminum and automobiles remained. Those goods measures are not the same policy as Ontario’s brief electricity-export charge. Department of Finance Canada announcement · Canada’s response to U.S. tariffs
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