Shell Energy electricity export applications

Summary#

Two applications filed on 14 September 2020 ask the Commission of the Canada Energy Regulator for permission to export electricity from Canada to the United States. Shell Energy North America (Canada) Inc. and Shell Energy North America (US), L.P. each seek to export up to 50 000 MWh per year for 10 years from the Brighton Beach Generating Station in Windsor, Ontario; the Commission is asking for public comments by 26 October 2020.

What it does#

• Two related applicants (one Canadian, one U.S. entity) applied under the Canadian Energy Regulator Act to export electricity to the U.S.
• Each application requests authorization to export up to 50 000 MWh of combined firm and interruptible energy annually for 10 years.
• Both applicants say they (or affiliates) have an interest in the Brighton Beach Generating Station, Windsor, Ontario.
• The Commission of the Canada Energy Regulator is seeking public views before it decides whether to issue a permit or move the file to a licensing procedure.
• The Commission specifically asks for comments on:
  • the effect of the proposed exports on provinces other than the province from which the electricity would be exported, and
  • whether the applicant has informed parties who declared interest in buying electricity for use in Canada and given them a fair opportunity to buy on comparable terms.
• Deadlines and steps:
  • submissions due to the Commission by 26 October 2020,
  • any answers from the applicant to those submissions due by 11 November 2020.
• The application is available on the Canada Energy Regulator website or by request by email to the applicant.

Who's affected#

• Shell Energy North America (Canada) Inc. and Shell Energy North America (US), L.P. (the applicants and their affiliates).
• Owners and operators of the Brighton Beach Generating Station and other local facility stakeholders in Windsor, Ontario.
• Provincial electricity buyers and utilities — especially any parties who told the applicant they wanted to buy power for use in Canada.
• Market participants and grid operators involved in cross‑border electricity trade.
• It is not fully clear from the notice which other provinces (if any) would be affected; the Commission has asked for input on that point.

Why it matters#

• Approving exports can change how much electricity stays in Canada versus what is sold to the U.S. That can affect local supply, contract opportunities, and potentially prices for some buyers.
• The Commission’s questions aim to protect Canadian buyers by checking that those who wanted to buy electricity in Canada were given a fair chance before exports proceed.
• This is a regulatory step, not an approval yet; public comments could influence whether a permit is granted or whether further review is required.