BPU General Manager Talks Little To No Potential Tariff Effects On Electric Rates
As the national government’s implementation plans for tariffs on items from Canada continue, the Jamestown Board of Public Utilities has been facing questions of if it could affect their customers’ rates.
During the March board meeting, General Manager David Leathers said he has received multiple questions about it, and how specifically electric rates could potentially be affected.
“I’ve tried to communicate that there is little risk for impacts on Jamestown BPU customers,” Leathers said. “I was in Albany last week … I was in a meeting and they kind of confirmed that the impact on the New York grid is expected to be minimal.”
According to an article by NPR, electricity that the United States purchases from Canada is one of the latest items that has become a focus of the ongoing trade war between the two countries, after earlier this month Ontario Premier Doug Ford announced the province was imposing a 25% surcharge on electricity exported to three U.S. states: Michigan, Minnesota and New York, in response to President Trump’s threats of tariffs. In response, the president threatened a 50% tariff on Canadian aluminum and steel a day later, with both sides eventually backing off and agreeing to talk about trade issues, though the threat of tariffs still remains. The article notes that electricity shared across the border represents less than one percent of the total power generated by both countries, though Canada says it exports enough electricity to the US to power more than 5.6 million homes.
Leathers acknowledged that it could become an issue locally in the summer and winter months, but with the BPU’s hydropower allocation they do not purchase as much off of the state’s grid as other places. Therefore, Leathers said, if the grid prices do spike a bit with any potential tariffs that could be enacted, BPU customers should be protected for the next few months.
“So, I don’t expect or anticipate any issues related to potential tariffs on electricity,” Leathers said.