Morgan Stanley Seeks 10-Year Electricity Export Permit

Summary#

An application from Morgan Stanley Capital Group Inc. asks the Canada Energy Regulator for permission to export up to 8 000 000 MWh of electricity each year for 10 years to the United States. The CER’s Commission is asking the public and interested parties for their views before it issues a permit or refers the matter to a licensing process under the Canadian Energy Regulator Act.

What it does#

• Requests authorization to export a mix of firm and interruptible electricity totalling up to 8 000 000 MWh per year for 10 years.
• Opens a public comment process so the Commission can hear from interested parties before deciding whether to grant a permit or move to a full licensing procedure.
• Makes the application available on the CER website and by email on request to napg_regulatory_filings@morganstanley.com.
• Asks that submissions be filed online with the CER and emailed to the applicant by 4 July 2022.
• Asks for answers from the applicant to any submissions by 19 July 2022.
• Specifically requests views on:
  • how exports might affect provinces other than the one supplying the power, and
  • whether the applicant has told potential Canadian buyers about available quantities and given them a chance to buy on comparable terms.

For more information, the notice directs people to contact the Secretary of the Commission at 403‑292‑4800 or secretary@cer-rec.gc.ca. The CER also notes its COVID‑19 response measures on its website.

Who's affected#

• Morgan Stanley Capital Group Inc., as the applicant.
• Electricity buyers and traders on both sides of the Canada–U.S. border.
• Provincial energy regulators and market participants in any province that might supply the exported power.
• Anyone or any organization that told the applicant they were interested in buying electricity for use in Canada (the Commission asked whether those parties were informed and offered a chance to buy).
• It is not clear from the notice which province or provinces the electricity would be exported from.

Why it matters#

• Allowing exports of up to 8 000 000 MWh a year for 10 years could change how much electricity is available in Canadian markets and could affect prices or competition for buyers in Canada.
• The CER is inviting input so local regulators, buyers and other stakeholders can raise concerns before a permit or licence is issued.
• Deadlines to comment are short: submissions by 4 July 2022 and applicant responses by 19 July 2022, so interested parties need to act quickly if they want their views considered.