Powering Down? Not Exactly.

Why Canada’s potential electricity surcharges shouldn’t impact northern Michigan

By Kierstin Gunsberg | April 19, 2025

Between charging our phones, running appliances, and keeping the lights on, the average U.S. household burns through about 30 kilowatt-hours of electricity daily. And while it may feel like warm weather is never coming, eventually temps will rise and air conditioners will be humming on, adding even more to that total.

But one thing no one wants to see rise is their electricity bill.

That concern sparked up in northern Michigan after Ontario Premier Doug Ford announced on March 10 that he planned to add a 25 percent surcharge on electricity exports to three states, including Michigan, in response to President Trump’s tariffs on Canadian imports. Ford hit the brakes, but back and forth between the U.S. and Canada has left people wondering what happens if the trade war escalates.

Northern Express went straight to the source, checking in with Consumers Energy, Cherryland Electric Co-op, and Traverse City Light & Power, to see if Ontario’s proposed electricity surcharges could drive up northern Michigan’s electric rates.

The Verdict? Not Likely. Here’s Why.

Simply put, northern Michigan’s electricity doesn’t come from Ontario. Local utilities buy their power through the Midcontinent Independent System Operator (MISO), a nonprofit that manages the high-voltage grid across 15 U.S. states, including Michigan.

MISO functions as a giant energy marketplace, making sure electricity flows where it’s needed, balancing supply and demand in real-time. While it does import some electricity from Canada, most of the electricity that comes from Canada into Michigan flows right back out to other states. All in all, Canadian electricity makes up for less than 1 percent of MISO’s total power, according to MLive. Most of MISO’s electricity is generated right here in the U.S.

In other words, a surcharge on electricity coming from Ontario would have minimal, if any, impact on northern Michigan’s electricity prices.

What Local Utilities Have to Say

Trisha Bloembergen, a spokesperson for CMS Energy/Consumers Energy, confirmed that their customers in northern Michigan won’t see changes if Canada moves forward with electricity surcharges.

“On the electric side of the business, we don’t import from Canada. Any net interchange purchases [extra electricity purchases made by utilities when energy demand is high to supplement the energy generated at their own plants] are done through MISO,” Bloembergen explains, adding that even the fuel for Consumers Energy’s plants comes from within the United States.

At Traverse City Light & Power (TCLP), Executive Director Brandie Ekren says the same is true for their utility. TCLP doesn’t rely on Canadian electricity and keeps a close eye on energy costs to ensure price stability.

“We monitor customer prices and the impact of their bills on a monthly basis,” Ekren says. “Whether we’re dealing with the price of fuel or the price of energy, it’s just inherent in our day-to-day.”

If energy prices were about to spike, TCLP customers would get a heads-up. But Ekren says that’s unlikely thanks to the utility’s long-term pricing contracts already locked in for at least the next decade. That means even if Ontario imposes the surcharge, TCLP customers won’t see much of an effect.

“We’re always monitoring and strategizing how to minimize the cost impacts of energy prices going up,” Ekren says.

Cherryland Electric Co-op, a MISO member, declined to comment.

Could Ontario’s Energy Decisions Have a Bigger Ripple Effect?

While northern Michigan is safe from Ontario’s surcharges, a full-blown cutoff of electricity exports to the U.S. could still have consequences.

Before announcing the pause on the surcharge, Ford hinted at something even more drastic—shutting off Ontario’s electricity exports entirely. On March 3, he made his position clear as Trump stacked threats to tariff Canadian imports: “If they want to try to annihilate Ontario, I will do anything, including cutting off their energy...”

The North American power grid is deeply interconnected, with Ontario’s electricity exports helping to balance supply and demand, particularly in states like New York and Minnesota. While Michigan utilities may not directly buy power from Ontario, disruptions elsewhere in the grid could cause price fluctuations, especially during high-demand periods like summer heat waves.

If Ontario pulled the plug on electricity exports, it could force affected regions to seek power from other suppliers, potentially driving up costs across the entire grid. That said, northern Michigan’s reliance on MISO and long-term price contracts still make a ripple effect here unlikely in the short term.

Consumers Energy Bills Set to Increase Anyway

But that doesn’t mean some electric bills aren’t going up for other reasons.

Consumers Energy, which supplies natural gas and electricity to 67 percent of Michigan’s residential population, got the green light for a rate hike from the Michigan Public Service Commission (MPSC) on March 21.

The $154 million increase took effect on April 4, tacking a 2.8 percent increase onto residential electricity rates, just a year after the last price bump.

In a statement, the for-profit utility explained that the additional revenue would help fund “an aggressive plan to clear trees near power lines and strengthen the grid to deliver energy to nearly 2 million homes and businesses.”

Smart Energy Conservation Tips For the Season Ahead

Spring is a good time to start taking inventory of energy consumption with a focus on conservation (and staving off a jumpscare every time you rip open a bill). Colin Hites, Sustainability and Climate Initiative Analyst for Traverse City Light & Power (TCLP), shares some practical ways to save energy and stay comfortable this spring, no matter what combo of weather comes our way.

1. Shift When You Use Power: One of the simplest ways to save both energy and money is to adjust when you use it. Northern Michigan utilities use time-of-use (TOU) rates, so electricity costs more during seasonal peak hours and less when demand is lower—usually after dinner through the midnight hours. Small changes, like running the dishwasher overnight, can leave a little wiggle room in the budget. “By shifting energy-intensive activities to off-peak hours, customers can maximize savings through small behavioral changes,” explains Hites.

2. Make “Smart” Investments: Smart thermostats are a great way to save energy automatically when you’re away. A few degrees warmer on the AC while you’re daytripping to the dunes, plus a fan to circulate the air, can make a big difference. Hites also suggests swapping out old incandescent bulbs for energy-efficient LEDs and upgrading to Energy Star-certified appliances. Before you buy, check if your utility offers rebates or financing options to help with the upfront costs.

3. Addressing Heat Pump Myths: Heat pumps can save hundreds each year by efficiently cooling in the summer and heating in the winter. Instead of generating heat like traditional systems, they transfer it by pulling warmth from the air or ground in winter and reversing the process during the summer. Because they use less energy than furnaces and air conditioners, heat pumps are an eco-friendly, cost-effective way to keep homes comfortable year-round. Still, they’ve gotten a bad rap for not handling northern Michigan’s harsh winters, like the one we’re currently thawing out from. But Hites says heat pumps have come a long way over the years and they’re worth a second look. “Today’s cold-climate heat pumps work efficiently in temperatures well below zero,” he says.