Second Foundation seeks electricity export permit

Summary#

The Canada Energy Regulator has published a notice about an application from Second Foundation US Trading, LLC to export up to 200 000 MWh of electricity per year for five years. The regulator is asking for public comments before it decides whether to issue a permit or move the application to a full licensing process.

What it does#

• Records that Second Foundation US Trading, LLC filed an application on 17 November 2023 to export electricity to the United States under Division 2 of Part 7 of the Canadian Energy Regulator Act.
• Announces that the Commission of the Canada Energy Regulator wants input from interested parties before deciding on a permit or licensing procedure.
• Asks for written submissions by 1 January 2024. Submissions must be filed online with the CER and emailed to the applicant.
• Asks for the applicant’s responses to certain submissions to be filed by 16 January 2024.
• Asks commenters to address two specific points:
  • The likely effect of the electricity export on provinces other than the one from which the electricity would be exported.
  • Whether the applicant told people who said they wanted to buy electricity in Canada about the quantities and service offered, and whether those people were given a fair chance to buy on as-favourable terms as the export proposal.

Who's affected#

• Electricity traders and companies that buy or sell cross-border power.
• Provincial utilities and grid operators, and consumers in provinces that might supply or be affected by exports.
• Any Canadian buyers who have declared interest in buying electricity for use in Canada.
• General public and local communities where exports might change supply or prices.
• It is not clear from the notice which province(s) the electricity would come from.

Why it matters#

• Export permits can affect local supply and prices if power that could serve Canadian customers is instead sent abroad.
• The regulator’s call for input is the main chance for utilities, provinces, interested buyers and members of the public to raise concerns or support before a decision is made.
• Deadlines matter: comments must be in by 1 January 2024, and applicants can reply by 16 January 2024. If you want to see the application or submit views, the notice says the document is on the CER website and the applicant will email a copy on request.