Updated March 31, 2025

Note: On March 6, 2025, Hydro-Québec suspended exports of electricity, citing low pricing in the New England market, so little to no tariff impact has been felt on the ISO-New England network. The tariffs in place for Canadian energy have been at 10% since March 4, 2025.

How Tariffs on Canadian Electricity Imports Could Impact Your Bill

At the Concord Municipal Light Plant, we are committed to providing our customers with reliable and affordable electricity. Recently, there has been discussion at the national level about tariffs on electricity imported from Canadian hydro sources. Since our region, like much of New England, relies on these imports as part of our energy mix, such tariffs could have a direct impact on electricity costs.

Potential Cost Increases

Canadian hydro power plays a significant role in keeping electricity prices stable in the ISO New England market. If tariffs are imposed, the cost of importing this clean and reliable energy could rise, potentially leading to higher electricity supply costs for our customers.

ISO-New England estimates that 11% of its power supply over the past 5 years has come from Canadian hydro sources. But the Concord Municipal Light Plant contracts for around 80% of its electricity at any given time, only purchasing about 20% from the spot market with these sources. For this reason, a 10% tariff would increase our purchased power costs by about $31,000 per year, while a 25% tariff would increase our costs by $77,000 per year. Keep in mind that this is of a total power supply forecast of about $23 million. This would not likely have a material change on rates or require a power cost adjustment to collect more money for energy costs.

The Concord Municipal Light Plant also has a small contract with a Canadian hydro generator, but we do not believe any tariffs would be a liability based on the contract language.

What Happens if Canadian Electricity is Cut Off?

If tariffs make Canadian hydro uneconomical or if imports are shut off entirely, the region would have to rely more heavily on other sources of electricity. In many cases, this could mean increased dependence on natural gas-fired generation, which is already a major part of New England's energy mix. This shift could lead to:

• Higher wholesale electricity prices due to increased demand for other energy sources.
• Greater price volatility, especially during peak demand periods in summer and winter.
• Potential reliability concerns, as the region would lose a steady, long-term power source that helps balance supply and demand.

 Our Commitment to You

We are closely monitoring this situation and advocating for policies that keep electricity costs stable and ensure reliable service for our customers. While we cannot control national trade policies, we are committed to keeping you informed and managing our power supply in a way that minimizes cost impacts wherever possible.

We will continue to provide updates as more information becomes available. If you have any questions about your electricity bill or how these potential changes might affect you, please reach out to our customer service team at concordutilities@concordma.gov.