Ontario Regulation 25/25, made under the Electricity Act, 1998, addresses a series of amendments designed to protect Ontario from the negative economic impacts of unjustified tariffs imposed by the United States. These tariffs have raised concerns within the province, as they threaten jobs, industries, and the overall economic security of Ontario. The regulation outlines a series of actions for the Independent Electricity System Operator (IESO) to take in response to these tariffs. The government of Ontario has voiced its strong objection to the U.S. tariffs, describing them as unfair, unjustified, and illegal. The regulation emphasizes that these tariffs will harm Ontario’s businesses, families, and industries and pose a significant risk to jobs and entire sectors of the economy, particularly in communities across the province. In response, Ontario is implementing actions aimed at protecting its economic and energy security.

The regulation defines the objects of the IESO, ensuring that its actions align with the views of the Government of Ontario. Specifically, the IESO’s objectives include responding to these tariffs in a way that prioritizes the energy needs of Ontarians and mitigates the adverse effects on the province’s economy. The IESO is instructed to take steps to discourage the transmission of electricity to the United States, effectively prioritizing the use of Ontario’s electricity resources for the benefit of its own population. Additionally, the IESO is authorized to implement a surcharge on the transmission of electricity to the U.S. as part of its strategy to protect the province’s interests.

One of the key objectives highlighted in the regulation is to defend the energy and economic security of Ontario by protecting it from the negative consequences of these tariffs. The regulation stresses the importance of taking appropriate and proportional actions in response to the tariffs, which are seen as a direct threat to the province’s stability. Ontario is positioned as acting in a manner that ensures both the reliability and security of the IESO-controlled grid, which is critical for meeting the energy needs of Ontarians.

The amendment also includes a specific focus on ensuring that the IESO’s activities align with the policies of the Government of Ontario. This further reinforces the provincial government’s stance on taking action against the tariffs and implementing necessary measures to safeguard the interests of its citizens and economy. The surcharge on electricity transmission to the U.S. is part of a broader strategy to reduce the impact of the tariffs and protect Ontario’s economic well-being.

In addition to the objectives outlined above, the regulation specifies that the IESO has the authority to engage in activities aimed at minimizing the negative effects of the tariffs. This includes a commitment to prioritize the efficient and sustainable use of Ontario’s electricity resources for the benefit of Ontarians, ensuring that local needs are met before electricity is transmitted across the border. These actions are part of a comprehensive response to a situation that Ontario views as an existential threat to its economy, and they reflect the province’s determination to stand firm against what it perceives as unjustified economic actions by the United States.

Ontario (25/25) March 26, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.