Ontario Imports US Power Despite Premier's Export Threats

The Independent Electricity System Operator (IESO) signed a six-month contract with U.S.-based Alpha Generation to import 600 megawatts of electricity starting November 1, 2026. The deal, which utilizes fossil-fuel plants including the Oswego oil-fired generator in New York, aims to prevent blackouts and brownouts during winter peak demand. The imports will compensate for facility maintenance and the refurbishment of the Pickering nuclear power plant's four CANDU reactors.

The procurement follows a period of trade tension in which Premier Doug Ford threatened to cut electricity and critical mineral exports to the United States as retaliation for tariffs. Critics, including the Ontario Clean Air Alliance, argue the deal is ironic and increases the province's vulnerability to U.S. political pressure by replacing emissions-free power with carbon-intensive energy. The IESO maintains that the contract is part of normal system planning and notes that Ontario remains a net-exporter of power, exporting seven times more electricity than it imported in 2025.

Concurrent with the import deal, the provincial government is reducing the electricity rebate from 23.5 percent to 15.7 percent starting in November. This change is expected to increase the average household bill by approximately $12.