Ontario Hits MI With 25% Electricity Tariff: Here's What That Means

MICHIGAN — Michiganders will likely see their electric bills go up after Ontario on Monday slapped a 25 percent tariff on Canadian-produced electricity flowing into Michigan and two other states. Ontario also provides electricity to Minnesota and New York.

The Canadian measure comes in direct response to President Donald Trump's tariffs on Canadian goods. Trump originally imposed a 25 percent tariff on most imports from Canada and Mexico last week, but paused them on Thursday for one month.

"I will not hesitate to increase this charge. If the United States escalates, I will not hesitate to shut the electricity off completely," Ontario Premier Doug Ford said at a news conference in Toronto. "Believe me when I say I do not want to do this. I feel terrible for the American people, who didn't start this trade war. It’s one person who is responsible, it’s President Trump."

What It Means For Michigan

Michigan Public Service Commission Chairman Dan Scripps told multiple news outlets that most Michiganders shouldn't notice any significant changes to their electric bills.

Although a lot of Canadian electricity flows through Michigan, Scripps told the Detroit Free Press that very little of it is actually purchased by Michigan utility companies.

DTE Energy and Consumers Energy, Michigan's two largest utility companies, rely mostly on domestically produced energy. So any direct increases are unlikely, though Scripps told Wood TV some Michiganders who rely on smaller utility companies could see more of an impact to their bills.

Scripps also warned if Ontario would shut down its electricity, it could disrupt the electrical grid, also known as the Lake Erie Loop Flow, leading to power outages.

"It removes one layer of resilience from the system as a whole, and that can have really significant impacts. We saw what happens when those flows get disrupted, and then other things go wrong, back in 2003 with the blackout that covered New York City and all the way into Detroit and Ann Arbor," Scripps told WDIV.

Further Tariffs On Oil

Ford also called on the Canadian province of Alberta to put an export tax on oil. Alberta provides 4.3 million barrels of oil a day to the U.S., with the bulk going to the Midwest, including Michigan.

Residents in those state can see a direct impact in the form of higher oil and energy costs. Some of the largest refiners that import oil from Alberta include, Detroit, Toledo, Chicago and Indiana.

"You want to talk about a Trump card. That will instantly change the game," Ford said. "I know the Americans. If all of a sudden their gas prices go up a dollar a gallon, they will lose their minds."

The Associated Press contributed to this report.