Second Foundation seeks to export electricity

Summary#

Second Foundation US Trading, LLC has asked the Canada Energy Regulator for permission to export up to 200 000 MWh of electricity each year to the United States for five years. The Commission of the Canada Energy Regulator is asking the public and interested parties for comments before it decides; written submissions are due by 1 January 2024, and responses from the applicant are due by 16 January 2024.

What it does#

• The company applied (application dated 17 November 2023) under the Canadian Energy Regulator Act to export a mix of firm and interruptible power totaling up to 200 000 MWh per year for five years.
• The Commission will decide whether to grant a permit or move the application to a licensing process. It is asking for outside views first.
• The Commission specifically wants input on:
  • whether the export would affect provinces other than the one the electricity would come from, and
  • whether the applicant gave Canadian buyers a fair chance to buy the electricity under the same conditions it is offering for export.
• The application is available from the applicant by email or on the CER website. Submissions must be filed online and emailed to the applicant by 1 January 2024. Replies by the applicant to submissions are due 16 January 2024.

Who's affected#

• Electricity traders and exporters, including the applicant, who seek to move power across the Canada–U.S. border.
• Provincial governments and local electricity utilities, since the Commission is asking about effects on provinces other than the source province. The notice does not say which province the power would come from.
• Large electricity buyers in Canada who might want to purchase the same power for domestic use.
• Other stakeholders who follow cross‑border energy flows (environmental groups, market observers, etc.).

Why it matters#

• If approved, up to 200 000 MWh of Canadian electricity could be sent to the U.S. each year for five years. That level of export could matter for local supply, markets, or prices in the provinces involved — which is why the Commission is asking for information.
• The public comment process is an opportunity for utilities, governments, and buyers to flag harms or concerns, or to say whether domestic buyers were offered a fair chance to buy the electricity instead of it being exported.