Second Foundation electricity export application

Summary#

The Canada Energy Regulator is asking for public comments on an application from Second Foundation US Trading, LLC to export up to 200 000 MWh of electricity per year to the United States for a period of five years. Written comments are due by 1 January 2024, and the applicant can reply by 16 January 2024.

What it does#

• On 17 November 2023, Second Foundation US Trading, LLC applied to the Canada Energy Regulator under the Canadian Energy Regulator Act to export a mix of firm and interruptible energy totalling up to 200 000 MWh annually for five years.
• The regulator’s Commission is seeking views from interested parties before it either issues a permit or sends the matter to a licensing process.
• The application is publicly available on the CER’s website. Anyone can request a copy by emailing office@second-foundation.com.
• Written submissions must be filed with the CER and emailed to the applicant by 1 January 2024. The applicant may file answers to submissions by 16 January 2024.
• The Commission specifically asks commenters about effects on provinces other than the one supplying the electricity, and whether Canadian buyers were informed and given a fair chance to purchase the electricity before it is exported.

Who's affected#

• Second Foundation US Trading, LLC (the applicant).
• Utilities, grid operators and electricity market participants in the province(s) from which the power would be exported. The notice does not state which province that is.
• Canadian companies or organizations that have expressed interest in buying electricity for use in Canada. The Commission wants to know if they were properly informed and offered the chance to buy on comparable terms.
• Anyone who wants to comment can participate by filing a submission by 1 January 2024.

Why it matters#

• Cross-border electricity exports can influence local supply and market arrangements in the province that would provide the power. The regulator wants to hear whether exports would have effects beyond that province.
• The process checks whether Canadian buyers were given a fair opportunity to buy the electricity before it leaves the country.
• Public comments can shape whether the export is permitted and under what terms.