Merrill Lynch electricity export application

Summary#

An application dated February 20, 2020 from Merrill Lynch Commodities, Inc. asks the Commission of the Canada Energy Regulator for permission to export electricity to the United States. The company seeks to export up to 2 500 000 MWh per year (combined firm and interruptible service) for 10 years, and the Commission is asking for public comments before it decides.

What it does#

• Asks for authorization to export up to 2 500 000 MWh annually of combined firm and interruptible energy for 10 years.
• Invites written submissions from interested parties, with a filing deadline of March 30, 2020.
• Allows the applicant to file responses to submissions by April 14, 2020.
• Requires the applicant to make its application available for public inspection (at its offices and in the Canada Energy Regulator library) and posts the application on the regulator’s website.
• Specifically asks commenters to address two points: whether the export would affect provinces other than the one the electricity comes from, and whether Canadian buyers who expressed interest were informed and given a fair chance to buy.

Who's affected#

• Merrill Lynch Commodities, Inc. (the applicant) and other electricity exporters/importers.
• Provincial utilities and regulators, because the Commission has asked about effects on provinces other than the source province.
• Canadian companies or organizations that said they wanted to buy electricity for use in Canada — the Commission wants to know if they were properly informed and given a fair chance.
• The general public and electricity consumers may be indirectly affected, though the notice does not spell out specific impacts.

Why it matters#

• This is a request to send a large amount of power out of Canada for up to a decade. That could influence cross‑border power flows and, depending on outcomes, could affect supply options or commercial arrangements in parts of Canada.
• The Commission’s call for comments means stakeholders can raise concerns about provincial impacts and whether domestic buyers were treated fairly.
• This is an application, not an approved export permit. The Commission will consider the public input before making a decision.