Ever looked at the massive power lines crossing the Niagara River and wondered where all that juice is actually going? It’s a bit of a local secret, honestly. While Ontarians often complain about their monthly hydro bills—and for good reason—the province is actually a powerhouse exporter. We aren't just making enough for ourselves. We're keeping the lights on in Michigan, New York, and even Minnesota.
Exporting Ontario electricity to US states isn't just some side hustle for the province; it’s a multi-billion dollar pillar of the regional economy. In 2024 alone, the Independent Electricity System Operator (IESO) reported that Ontario exported roughly 18 terawatt-hours of electricity. To put that in perspective, that’s enough to power nearly two million homes for an entire year. And yet, most people living in Mississauga or Ottawa have no clue their "clean green" nuclear power is cooling a data center in Buffalo.
The Massive Grid You Never See
The connection between Ontario and the United States isn't new. It’s a massive, pulsating web of high-voltage lines that have been humming since the early 20th century. We have over 25 interconnections with our neighbors. These aren't just wires. They are the backbone of a shared North American energy strategy.
Why do we do it? Money. Plain and simple.
When Ontario has a surplus—usually at night when you’re sleeping or during those "Goldilocks" spring days when nobody needs the AC or the furnace—we have to do something with that power. You can’t just "store" it easily. Sure, we have some pumped storage, but for the most part, if the Bruce Nuclear Generating Station is pumping out megawatts and nobody in Toronto is using them, that power needs a home. Selling it to the Americans prevents us from having to literally pay people to take it off our hands, a phenomenon known as negative pricing that used to haunt the IESO.
Who is buying what?
Michigan is usually our biggest customer. Their grid is heavily reliant on natural gas and aging coal plants, so when they need a reliable, carbon-free boost, they look north. New York is a close second. The "Clean Path NY" initiatives and various state-level mandates for green energy make Ontario’s nuclear and hydro mix incredibly attractive.
Basically, we are the "clean" battery for the Rust Belt.
It's a weird dynamic. You have situations where Ontario residents pay a "Global Adjustment" fee on their bills—a complex mechanism that covers the cost of building our infrastructure—while the actual commodity price of the electricity we export can be quite low. This frustrates people. It feels like we're subsidizing cheap power for Americans.
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But the IESO argues the opposite. They claim that without these export revenues, which totaled hundreds of millions of dollars in recent years, the bills for Ontario homeowners would actually be higher. The profit from these sales goes back into the system to offset the costs of maintaining the grid. It's a balancing act that requires 24/7 monitoring from the control center in Oakville.
Is the "Green" Label Actually True?
Let's talk about the mix. When we send Ontario electricity to US markets, what are they actually getting?
Ontario has one of the cleanest grids in the world, thanks to the 2014 coal phase-out. About 50-60% of our power comes from nuclear. About 25% comes from massive hydroelectric dams like the Sir Adam Beck stations in Niagara Falls. The rest is a mix of wind, solar, and natural gas.
- Nuclear: The steady baseline. It doesn't ramp up or down easily.
- Hydro: The flexible "battery." We can open the gates when New York needs power fast.
- Gas: The emergency backup. We try not to export this, because it's expensive and carbon-heavy.
Environmentalists in the States love importing Ontario power because it helps them meet their ESG (Environmental, Social, and Governance) goals without having to build a nuclear plant in their own backyard. It’s "NIMBY-ism" at its finest. They get the carbon-free electrons; we keep the spent nuclear fuel rods in Kincardine.
The Reliability Factor: Preventing the Next Big Blackout
Remember 2003? The Great Northeast Blackout started in Ohio and swept through Ontario like a wildfire. It proved that our grids are physically inseparable. Today, the trade of Ontario electricity to US regions is as much about safety as it is about profit.
The North American Electric Reliability Corporation (NERC) sets the rules. If Michigan’s grid starts to sag because a plant goes offline, Ontario’s system can automatically respond. We share "spinning reserves." It’s a neighborhood watch for electricity.
Sometimes we actually import power. If it’s a sweltering 35-degree day in Southern Ontario and every single air conditioner is cranking, we might buy power back from Quebec or New York. It’s a two-way street, though the lane heading south is usually much busier.
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The Nuclear Renaissance and Future Exports
We are currently in the middle of a massive refurbishment project. Darlington and Bruce Power are spending billions to extend the life of their reactors. This is crucial for the future of Ontario electricity to US exports. If these plants went dark, Ontario would go from being a regional energy kingpin to a desperate beggar.
Premier Doug Ford’s government has also pivoted back toward nuclear, proposing new large-scale reactors and Small Modular Reactors (SMRs) at Darlington. Why? Because the demand in the US is only going up. Between the rise of AI data centers—which drink electricity like water—and the push for Electric Vehicles (EVs), the Americans are hungry for power.
Honestly, we're looking at a future where Ontario becomes the primary energy hub for the entire Great Lakes region.
The Economic Impact You See on Your Bill
The "Global Adjustment" (GA) is the boogeyman of Ontario politics. It’s the extra charge that covers the difference between the market price of power and the guaranteed prices promised to generators.
When we export Ontario electricity to US states, we usually sell it at the "Hourly Ontario Energy Price" (HOEP). This price is often very low—sometimes just 2 or 3 cents per kilowatt-hour.
Wait.
Why are we selling it for 3 cents when we pay 15 cents at home?
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It’s because the Americans aren't paying the Global Adjustment. They only pay the commodity price. Critics like the Ontario Clean Air Alliance have pointed out that this seems lopsided. However, the business logic is that the "sunk costs" of the nuclear plants are already paid by us. Any extra cent we get from New York is "found money" that helps lower the total burden on the Ontario taxpayer. If we didn't sell it, we'd just be "dumping" the power or spilling water over the dams, getting zero dollars for it.
Infrastructure: The Physical Handshake
You can't just plug a toaster into a border fence. The physical infrastructure of Ontario electricity to US trade involves massive transformer stations and HVDC (High Voltage Direct Current) lines.
The Michigan-Ontario border has four major interconnections. The New York border has even more.
One of the most interesting projects in recent years was the proposed Lake Erie Connector. It was supposed to be a 117-kilometer underwater cable buried beneath Lake Erie, connecting Nanticoke, Ontario, to Erie, Pennsylvania. It was paused due to rising costs, but it shows the ambition. Investors are literally trying to find ways to tunnel under the Great Lakes just to get more Ontario power into the PJM Interconnection (the grid that serves 65 million people in the US Northeast).
Practical Insights for the Future
If you’re a business owner in Ontario, or just a curious resident, the export market matters to you more than you think.
- Rate Stability: As long as Ontario remains a net exporter, we have a "buffer." The revenue from the US helps stabilize our domestic rates, even if it doesn't feel like it during a July heatwave.
- Investment Opportunities: The supply chain for these exports—companies like Bruce Power, OPG, and the engineering firms that support them—are massive employers. The "energy export" business is one of Ontario’s quietest but largest manufacturing sectors.
- Decarbonization Trends: Watch the US policy. If the US federal government increases subsidies for "clean imports," the value of Ontario’s grid goes up. This could eventually lead to higher "export premiums" which would be a win for the Ontario treasury.
The flow of Ontario electricity to US markets is a complex dance of physics, economics, and politics. We are the quiet giant of the North American grid. While the headlines usually focus on trade wars over cars or dairy, the silent flow of electrons across the Niagara and St. Clair rivers is arguably the most vital trade we have.
Keep an eye on the IESO’s quarterly reports. They show the real-time heartbeat of this relationship. As the US moves away from coal and struggles to build new nuclear, Ontario’s position as the "Green Battery of the North" is only going to get stronger.
To stay informed on how this affects your specific costs, you can track the "Hourly Ontario Energy Price" (HOEP) on the IESO website. It gives you a real-time look at what we’re charging our neighbors. Understanding the "Global Adjustment" on your bill is also key; it’s not just a tax, it’s the price of maintaining a grid that the entire continent relies on. If you're looking to hedge against future price increases, look into energy efficiency programs like "Save on Energy," which are often funded by the very profits made from these US exports.