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Why Ontario’s electricity tariff likely won’t hurt Minnesotans

Duluth-based Minnesota Power is connected to the Ontario grid by a transmission line into Canada, spokeswoman Amy Rutledge said. The utility buys only a sliver of its power from Ontario.

The company purchased about $310,000 worth of electricity from Ontario’s grid in 2024, according to filings with state regulators. By comparison, Minnesota Power spent around $108 million to buy electricity from Manitoba Hydro last year.

What remains unclear — and could have a bigger impact — is how a 10% U.S. tariff imposed by Trump on Canadian energy will affect Minnesota.

It’s unknown if U.S. import tariffs actually apply to electricity, however, said officials with the 15-state regional grid that includes Minnesota, known as the Midcontinent Independent System Operator (MISO). Three oil refineries that provide much of Minnesota’s gasoline get most of their crude from Canada, and the state also imports natural gas from Canada.

“The Ontario thing is a symptom, not the broader disease,” said Pete Wyckoff, a deputy commissioner for Walz’s Department of Commerce who oversees energy issues. “In a broader trade war with Canada that includes energy, Minnesota would be a huge loser because of our dependencies.”

Walz also told reporters on Monday that he was worried about the impact on Minnesota if Manitoba followed suit, but that Ontario tariffs hitting even a small amount of power “was totally unnecessary” and caused by Trump’s trade war.

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