Market Snapshot: Electricity Trade — who regulates what in Canada?
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Release date: 2025-01-22
Electricity trade between Canada and the United States (U.S.) involves exchanges of electricity across an international border using transmission lines. There is a mix of provincial and federal oversight for electricity trade regulation in Canada, which includes the infrastructure itself and trade activities.
The CER and Electricity Exports
The Canada Energy Regulator (CER) regulates all electricity exported from Canada. When issuing export permitsFootnote 1 or licencesFootnote 2 for electricity exports to the U.S., the CER considers whether an applicant gave notice of its application in accordance with regulatory requirements, the effect of the exportation on other provinces, and whether the applicant has provided fair market access for domestic consumption. The CER does not regulate electricity import activity into Canada.Footnote 3 Most of Canada’s electricity trade is with the U.S., as opposed to between provinces.Footnote 4 While electricity exports from Canada are regulated by the CER, provincial Crown corporations generally make the trading decisions, including the volumes to be exported and imported.Footnote 5
The CER publishes reports on electricity trade between provinces and the U.S. in its Commodity Statistics.
The CER and International Power Lines
The CER currently regulates 86 international power lines. These are generally only a few kilometres long, starting at the substation nearest the international border and ending at the international border. For example, more than half (45 of 86) of operating international power lines are less than four kilometres long.Footnote 6 Figure 1 shows some of these international power lines connecting almost all provinces to the U.S. transmission network, even though they only make up a small portion of the total transmission system in North America. Of the total international power lines regulated by the CER, the diamonds along Canada’s southern border indicate high and extra high voltage international power lines.
Figure 1: International Power Lines and the Canada-U.S. Grid
Source and Description
Source: OpenStreetMap 2022, CER IPL Database, EIA U.S. Energy Atlas
Description: This map shows the high voltage transmission power lines in Canada that are over 100 kilovolts (kV) and high voltage transmission lines in the U.S. that are over 200 kV. Transmission lines link the following provinces to international markets: B.C. to the U.S. Pacific Northwest grid; Manitoba to the U.S. midcontinent grid; Ontario to the U.S. midcontinent and U.S. eastern grids; Quebec to the U.S. eastern grid; and New Brunswick to the U.S. New England grid. There are also power lines between Alberta to Montana and Saskatchewan to North Dakota.
The map also shows the 23 high voltage and extra-high voltage international power lines that are 230 kV and above at the Canada/U.S. border. International power lines, as regulated by the CER, are shown as a diamond shape on the map because they are relatively short in length. There is a list of 23 international power lines on the right side of the figure that spotlights where each international power line is on the map as many of the diamonds overlap each other. Note the map does not show all 86 international power lines. Lower voltage lines below 230 kV are not shown because of the overlap.
The following list summarizes the international power lines shown on the map by province, and provides the voltages of the lines:
British Columbia: four international power lines shown in total. Two extra high voltage international power lines, each 500 kV; and two high voltage international power lines, each 230 kV.
Alberta: one high voltage international power line shown, 230 kV.
Saskatchewan: one high voltage international power line shown, 230 kV.
Manitoba: five international power lines shown in total. Two extra high voltage international power lines, each 500 kV; and three high voltage international power lines, each 230 kV.
Ontario: eight international power lines shown in total. Two extra high voltage international power lines, each 345 kV; and six high voltage international power lines, each 230 kV.
Quebec: Two extra high voltage international power lines shown in total—one 765 kV line and one 450 kV line.
New Brunswick: two extra high voltage international power lines shown, each 345 kV.
International power lines facilitate trade by connecting provincial transmission grids to various export markets in the U.S. To export electricity, Canada needs international power lines that are safe and reliable. The CER has two main responsibilities: issuing authorizations for the construction and operations of international power lines; and overseeing the electricity system safety and reliability. Regarding authorizations, depending on the circumstances, the CER’s electricity mandate either includes limited regulation related to the construction and operation of international power lines, or the complete regulation of the construction, operation, and abandonment of these international power lines, as described below.Footnote 7
The CER (through its Commission) can issue three types of authorizations for an international power line:
A permit with transfer to a designated provincial authority upon issuance for oversight (default authorization)
A certificate with transfer to a designated provincial authority for oversight upon issuance
A certificate where the CER maintains oversight upon issuance instead of a designated provincial authorityFootnote 8
Whether a permit or a certificate is issued, there are project-specific conditions that are attached.
These authorizations reflect the relationship between provincial and federal jurisdictions in the oversight of electricity transmission.
1. Permit with transfer to designated provincial authority
Provincial crown corporations—representative of most entities applying for international power line authorizations from the CER—usually apply under the permit process. This process considers limited information because the oversight is largely the responsibility of the designated provincial authority in the province in which the international power line will be constructed and operate. After the Commission issues a permit, the provincial regulatory agency, designated by the province, takes over from the CER’s oversight.Footnote 9 The majority of CER authorizations fall within this category.
2. Certificate with transfer to a designated provincial authority
In rare cases, when an applicant applies for an international power line permit, the Commission, with the approval of the Minister, assesses the application under a certificate process for a more detailed assessment. If approved, oversight will still be transferred to the designated provincial authority.
3. Certificate with the CER maintaining oversight
Lastly, an applicant for a proposed international power line can elect a certificate process. This election means that if a certificate is issued, the international power line will be subject to CER oversight rather than provincial oversight. Usually, applicants other than provincial crown corporations make this election.
North-South Transmission Lines
International power lines help provide grid reliability by linking provincial and U.S. grids. Large capacity electricity transmission infrastructure has been built predominantly north to south, between Canada and the U.S., not east to west between provinces and territories (Figure 1).
Generally, provinces that produce large amounts of hydroelectricity have the highest voltage international power lines to support more trade. Of the 86 international power lines, ten are over 345 kV and connected to large wholesale U.S. export markets. Meanwhile, some lower-voltage lines deliver small amounts of electricity to accommodate people and businesses not far across the Canada/U.S. border. These international power lines are used for border accommodations to connect U.S. customers directly across the border to the Canadian power grid when they lack connectivity with the U.S. grid.
Electricity Delivery to Consumers and Export Markets
Figure 2 illustrates the infrastructure that moves electricity between provincial power generators and customers in Canada and exports to the U.S. Electricity is produced at power generating stations. Electricity is delivered by provincially regulated transmission lines from generation sources to provincially regulated distribution lines for domestic use; or to CER regulated international power lines for export. Substations link power lines using a series of transformers and other equipment to “step up” or “step down” voltages and form power line connections where needed.
Residential and business customers receive electricity from local distribution lines. The connections between Canada’s grid and the U.S. allow exchanges of electricity with the larger continental grid through export and import activities. If more electricity is needed than what was generated domestically, power distributors or their trading divisions, can import electricity from the U.S. into the local distribution network. Provinces tend to import electricity if it is cheaper than generating it, if there is a generating shortfall, or if demand is higher than anticipated. Conversely, Canadian power producers may choose to sell excess electricity to our U.S. neighbours.
Figure 2: Electricity Infrastructure for Distribution and Trade
Source and Description
Source: Canada Energy Regulator
Description: This infographic shows the components of the electricity production and delivery system. The delivery system provides electricity for domestic consumers and international trade. Electricity is produced provincially at power generation stations. These are connected to transmission lines which are connected to an electricity substation. At the other side of the substation is a transmission line. A second substation is shown connecting this transmission line to a distribution line and an international power line. The distribution line brings electricity to domestic customers like residential and commercial users. The international power line goes to the Canada/U.S. international border.
Historically, the leading hydropower producing provinces have had the highest levels of international electricity trade and the most robust north-south infrastructure. Since hydroelectric power generation depends on water levels, the quantity available for export to U.S. markets depends on precipitation levels and domestic demand. If there are generation shortfalls, electricity can be imported from U.S. sources.
Provincial and Territorial Infrastructure Regulation
Electricity grids fall under provincial or territorial jurisdiction in Canada, except for those lines that are international power lines under the CER Act (Figure 1). Interprovincial transmission lines are currently regulated by their respective provinces. Generally, provincial or territorial entities manage generation sources, power distribution, load forecasting, and electricity access and reliability. Overseeing grid reliability includes working cooperatively with organizations overseeing reliability across multiple jurisdictions.Footnote 10
For more information on electricity generation sources, transmission, and consumption sectors across Canada visit the CER’s Provincial and Territorial Energy Profiles. Some provinces like Alberta and Ontario are structured to allow competition in the electricity sectors. However, most provinces and territories have vertically integrated crown corporations that manage or oversee the electricity generation, transmission, distribution, and trading (sales and marketing) activities.
Provincial and Territorial Electricity Transmission
This table lists provincial and territorial electricity regulators, transmission system operators, and wholesale electricity trade details. Provincial and territorial regulators such as public utility boards can regulate utility rates or physical projects. At the federal level, the CER oversees the construction and operation of international power lines, export activities, and trade reporting.
Provincial and Territorial Electricity Transmission
Area
Key Transmission / System Regulator (or Organization)
Transmission Operations
Trade Activities
British Columbia (BC)
The British Columbia Utilities Commission (BCUC) regulates BC’s electricity infrastructure.
BC Hydro is the crown corporation that owns most of BC’s transmission lines.
Powerex (the trading arm of BC Hydro) is the main company that trades power in BC. The province trades electricity with market participants in Alberta, U.S. Pacific Northwest states, and California.
Alberta
The Alberta Utilities Commission (AUC) regulates Alberta’s electricity infrastructure and market functions.
AltaLink and ATCO Electric are the main owners of Alberta’s transmission lines. ENMAX and EPCOR also own transmission assets.
The Alberta Electric System Operator (AESO) operates the provincial electricity transmission system and the wholesale electricity market.
The Alberta Market Surveillance Administrator oversees fair participation in the province’s electricity markets.
In Alberta, electricity is traded with market participants in neighbouring provinces and states such as Montana and Washington.
Wholesale electricity markets are deregulated in Alberta. The companies that trade electricity to the U.S. from Alberta (and from the U.S. to Alberta) are listed in the CER’s Commodity Statistics for electricity exports (and imports).
Saskatchewan
The Saskatchewan Electric Reliability Authority (SERA) regulates Saskatchewan’s electricity reliability.
SaskPower is the crown corporation that owns electricity transmission, generation, and distribution in Saskatchewan.
SaskPower as well as its subsidiary, NorthPoint Energy Solutions, trades wholesale electricity with market participants in other provinces and states such as North Dakota.
Manitoba
The Manitoba Public Utilities Board (PUB) regulates Manitoba’s electricity rates and reliability.
Manitoba Hydro is the crown corporation that owns electricity transmission, generation, and distribution in Manitoba.
Manitoba Hydro also manages the province’s electricity exports and imports.
Manitoba trades electricity with market participants in other provinces and Midwest states such as Minnesota and North Dakota.
Manitoba’s PUB does not regulate or manage Manitoba Hydro’s export contracts or daily operations.
Ontario
The Ontario Energy Board (OEB) regulates Ontario’s electricity sector.
Hydro One owns nearly all of Ontario’s electricity transmission lines.
The Independent Electricity System Operator (IESO) manages and integrates Ontario’s electricity transmission.
The IESO also oversees Ontario’s electricity market, and the OEB’s Market Surveillance Panel monitors IESO markets.
Ontario trades electricity with market participants in other provinces and states like Michigan and New York.
Wholesale electricity markets are deregulated in Ontario. The companies that trade electricity to the U.S. from Ontario (and from the U.S. to Ontario) are listed in the CER’s Commodity Statistics for electricity exports (and imports).
Quebec
The Régie de l’énergie du Quebec regulates Quebec’s electricity system.
Hydro-Quebec is the crown corporation responsible for Quebec’s electricity transmission, generation, and distribution.
TransÉnergie, a division of Hydro-Quebec, develops the long-term plans for Quebec’s transmission system.
Both Hydro-Quebec and HQ Energy Marketing Inc., a division of Hydro-Quebec, trade wholesale electricity.
Quebec trades electricity with market participants in other provinces and states like Maine and New York.
Newfoundland and Labrador
The Public Utilities Board of Newfoundland and Labrador regulates transmission line expenditures and electricity policies.
Newfoundland and Labrador Hydro (NL Hydro) is the crown corporation responsible for most of the transmission and generation in the province.
Nalcor Energy Marketing, a subsidiary of NL Hydro, is a power marketer based in Newfoundland and Labrador that participates in energy markets outside of its province. (Nalcor Energy Marketing is registered to trade wholesale electricity in Ontario, for example.)
New Brunswick
The New Brunswick Energy & Utilities Board regulates the province’s electricity system.
NB Power is the crown corporation that manages New Brunswick’s electricity transmission, generation, and distribution.
The New Brunswick Energy Marketing Corporation, a subsidiary of NB Power, participates in wholesale electricity markets. Trade partners include Quebec, PEI, Nova Scotia, and Maine.
Nova Scotia
The Nova Scotia Utility & Review Board (NSUARB) regulates the province’s electricity transmission system.
Nova Scotia Power is the crown corporation that provides the transmission in the province and is regulated by NSUARB.
The Nova Scotia Power System Operator and Nova Scotia Power manage access to the province’s transmission and wholesale electricity markets.
Nova Scotia’s electricity trade activities can involve New Brunswick and Newfoundland and Labrador.
Prince Edward Island
The Regulatory and Appeals Commission regulates Maritime Electric Company in PEI which owns PEI’s integrated electricity system.
The Maritime Electric Company, which is owned by Fortis Inc., owns and operates electricity transmission in PEI. The Maritime Electric Company oversees PEI’s transmission.
The PEI Energy Corporation is the crown corporation that oversees the efficiency and economics of the province’s electricity transmission.
PEI is a net electricity importer of off-island electricity using subsea transmission cables between PEI and New Brunswick.
Yukon
The Yukon Utilities Board (YUB) regulates Yukon Energy Corporation.
Yukon Energy Corporation is the crown corporation that owns and operates the territory’s electricity transmission infrastructure.
Yukon’s electricity transmission lines do not connect to the larger North American grid or other territories.
Northwest Territories
The Northwest Territories Public Utilities Board (PUB) regulates the Northwest Territories Power Corporation.
Northwest Territories Power Corporation is the crown corporation that owns and operates the territory’s electricity transmission infrastructure.
Northwest Territories’ electricity transmission lines do not connect to the larger North American grid or other territories.
Nunavut
The Nunavut Utility Rates Review Council (URRC) regulates the Qulliq Energy Corporation in transmission rate related matters.
Qulliq Energy Corporation is the crown corporation that owns and operates the territory’s electricity transmission infrastructure.
Nunavut does not have electricity transmission lines connecting its communities. Each community independently generates and distributes its own electricity.
Footnotes
Footnote 1
An application for an electricity export permit is considered in a written process without a public hearing.
Return to footnote 1 referrer
Footnote 2
An electricity export licence is assessed through a hearing process, which may be oral or written. There are more requirements for electricity export licences than there are for permits, and the issuance of the licence is subject to Governor in Council approval.
Return to footnote 2 referrer
Footnote 3
However, the CER collects electricity import data on behalf of Statistics Canada.
Return to footnote 3 referrer
Footnote 4
The territories do not trade electricity with each other or the provinces.
Return to footnote 4 referrer
Footnote 5
However, this is not the case for Alberta and Ontario, where private entities are involved in trading decisions.
Return to footnote 5 referrer
Footnote 6
An exception is the international power line between Manitoba and Minnesota which is over 210 kilometres long.
Return to footnote 6 referrer
Footnote 7
In addition to international power lines, the CER also has jurisdiction over inter-provincial power lines designated by the Governor in Council. Currently, there are no designated inter-provincial power lines regulated by the CER.
Return to footnote 7 referrer
Footnote 8
More details are in the section 3.1.2 of the CER – Electricity Filing Manual – Chapter 3 – Common Information Requirements. Also, the flow chart of this process, Figure 2-1 Options Under the CER Act, is in the Electricity Filing Manual – Chapter 2 – Instructions to Users.
Return to footnote 8 referrer
Footnote 9
Section 250 of the CER Act sets out which provincial entities are eligible to be a provincial regulatory agency.
Return to footnote 9 referrer
Footnote 10
The CER enforces reliability standards of federal international power lines via the General Order for Electricity Reliability (MO-036-2012). This Order addresses the regulatory gap for mandatory reliability standards that exists for international power lines between upstream provincial governance, and downstream U.S. jurisdiction.
Return to footnote 10 referrer
Date modified:
2025-01-20
