Rainbow Energy electricity export application

Summary#

Rainbow Energy Marketing Corporation applied to the Canada Energy Regulator to export large amounts of electricity to the United States. The company asked to export up to 4,380,000 MWh of firm energy and up to 4,380,000 MWh of interruptible energy each year for 10 years (application dated 10 July 2024). The regulator is asking for public comments before it decides.

What it does#

• It is an application to the Canada Energy Regulator under the Canadian Energy Regulator Act to permit electricity exports to the United States.
• The application seeks authority to export:
  • up to 4,380,000 MWh of firm energy annually, and
  • up to 4,380,000 MWh of interruptible energy annually,
  • for a period of 10 years.
• The Commission of the Canada Energy Regulator is inviting interested parties to give written views before it issues a permit or refers the file to a licensing process.
• Deadlines set in the notice:
  • written submissions must be filed by 21 August 2024, and
  • any replies from the applicant to those submissions must be filed by 5 September 2024.
• The application is available on the CER website and can be requested from the applicant by email.

Who's affected#

• Electricity market participants, such as exporters, generators, and large buyers on both sides of the border.
• Provincial energy regulators and utilities may be affected — the Commission specifically asks for views about effects on provinces other than the one the power would come from.
• Anyone or any organization that has declared an interest in buying electricity for consumption in Canada, because the notice asks whether those buyers were offered a fair chance to purchase the electricity.
• The notice does not say which Canadian province the exports would originate from, so it is unclear which provincial market would feel the direct effect.

Why it matters#

• Large, long-term exports can change how much electricity is available in domestic markets. That can matter for prices, reliability, and competition.
• The regulator’s review gives provinces, utilities, and potential Canadian buyers a chance to flag local impacts or unmet domestic demand before a permit is issued.
• This is an application and a public consultation step — it is not a permit yet.