Stowe Electric Department 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 substantial portion of the state’s overall power supply. As an example, Stowe Electric received approximately 21% of its electricity from Hydro Quebec in 2024.
The Trump administration’s 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 10% tariffs do indeed apply to electricity purchased from Canada, we anticipate an overall increase in Stowe Electric's power supply costs of around 1.2%. This is equivalent to approximately $121,000 more annually when calculated using 2024 actual Hydro Quebec costs.
It is important to note that while the utility's power supply costs could increase by 1.2% as a result of the tariffs, there will not be any immediate impact on customer bills. If a rate increase is necessary, any electric rate changes must go through a regulated process overseen by Vermont’s Public Utility Commission.
Canada and Hydro Quebec are critical trade partners for the United States, Vermont, and Stowe Electric Department. 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:
21% of Stowe Electric’s power supply came from Hydro Quebec in 2024.
Stowe Electric does not receive power from Ontario and would not be directly impacted if the province cuts energy exports to the US.
If 10% tariffs apply to Canadian electricity entering the US, Stowe Electric's overall power supply costs would increase by 1.2%, or about $121,000 annually.
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.