Home > Industry Issues > Economic > Canada-U.S. Affairs

U.S. Affairs

Issue SummaryIssue ManagementResource Library 


Issue Summary

The international network of high voltage lines connecting customers in Canada and the United States is the critical enabler of the integrated North American economy.  The interconnected grid affords both nations an advantageous measure of reliability and energy security, and helps service the basic day-to-day needs of millions of people all across the continent.

With over 30 major transmission interconnections linking Canada and the U.S., the cross-border flow of electricity is an established and growing part of the larger energy trade relationship enjoyed by the two countries.  Both Canada and the U.S. serve as vital partners for the other in maintaining the efficient delivery of competitively priced electricity across North America.

The Canadian Electricity Association (CEA) is actively involved in the promotion of Canadian electricity industry interests in the United States.  With supply constraints in the U.S., the competitive price of Canadian power, the rising interest in business opportunities for Canadian companies in the U.S. market, and the growing attention to environmental cooperation, it is increasingly important that Canadian electricity industry interests be represented in Washington. 

Ongoing issues of interest for CEA and its members vis-à-vis the United States include the following: 
 

  • Climate change:  In 2009, the U.S. Congress proposed several initiatives to reduce greenhouse gas emissions (GHG), including the establishment of a nationwide cap-and-trade program.  The potential impact of these proposals on the Canadian electricity industry remains unclear.  CEA believes that Canada and the U.S. stand to gain from aligning their GHG regimes to ensure meaningful environmental improvements do not erect barriers to bilateral electricity trade.
  • Renewable electricity standards (RES):  RES ensure a minimum percentage of renewable energy in the mix of electricity resources serving a particular jurisdiction.  With approximately 30 U.S. states having adopted such mandates, many members of the U.S. government are pushing for a nationwide standard.  CEA strongly believes that Canadian power exports present an effective and environmentally preferable solution for U.S. retailers looking to satisfy RES obligations.  CEA seeks RES language that is inclusive of Canadian exports, including output from large hydropower facilities. 
  • Cyber security:  For several years, CEA has engaged in discussions with our U.S. counterparts on protecting the grid against cyber security risks.  CEA is concerned by any effort to resolve these risks in a manner which ignores the importance of coordinating with Canadians and which bypasses the North American Electric Reliability Corporation (NERC) framework set-up to enable collaboration amongst all relevant stakeholders in mitigating common threats to the grid.  CEA supports strengthening NERC’s role as a forum for addressing cyber security concerns.
  • Open access:  Starting in the mid-1990s, the U.S. government undertook a series of steps to make wholesale electricity markets in the U.S. more competitive, with the aim of bringing greater amounts of lower cost power to electricity consumers.  The cornerstone of this effort was reducing any undue discrimination in providing access for customers and competitive power suppliers to the vast transmission networks which transport electricity across America.  As efforts to reform the design of U.S. power markets have unfolded, CEA has requested its U.S. partners to recognize the integrated nature of the North American electricity system and to respect international agreements such as NAFTA which prohibit discrimination between foreign and domestic sources of energy based on nationality.
  • Smart Grid:  The movement towards the “Smart Grid” is a leading example of the technological transformation underway in the North American electricity sector.  Utilities across Canada and the U.S. are taking advantage of the enormous potential of Smart Grid technologies to improve their overall efficiency, better manage system performance and increase consumer control over electricity use.  With these benefits come challenges, though.  With Smart Grid components set to become a standard feature of new electrical infrastructure – including cross-border transmission infrastructure – Canada-U.S. coordination on the development of interoperability standards governing Smart Grid technologies will be critical to ensuring such technologies can be deployed securely, reliably and expediently.  
CEA began devoting resources to a coordinated program on U.S. Affairs in 1999 and launched a separately funded U.S. Affairs Strategy in 2001, which has grown significantly over the past several years.  In April 2010, CEA held its twelfth annual policy forum in Washington and published the latest in its series of annual North American Policy Papers.

CEA’s U.S. Affairs work is jointly sponsored by the Generation, Transmission and Power Marketer’s Councils.

Issue Management

Key Contact


Patrick Brown
Director, U.S. Affairs
(613) 627-4124
brown@electricity.ca
 

Resource Library

CEA NORTH AMERICAN POLICY PAPERS 
 


U.S. REGULATORY & LEGISLATIVE FILINGS


Federal Energy Regulatory Commission
  

Department of Energy

U.S. Congress & Supreme Court 



OTHER PUBLICATIONS
 



RELEVANT LINKS