Friday’s discussion focused on the interdependence of the New England states and Canada’s Atlantic provinces, particularly with regard to energy.
For example, about $10 billion worth of motor fuels, natural gas, and electricity is imported from Canada each year, per stats provided by the business council. Specifically, 80 percent of New England’s gasoline and diesel fuel comes from Canada, primarily from the Irving Oil refinery in Saint John, New Brunswick; nearly 90 percent of the jet fuel at Logan Airport comes from Canada. And nearly 10 percent of New England’s electricity is imported from Canada, such as from hydroelectric facilities in Quebec, with more coming soon once the New England Clean Energy Connect power line through Maine is complete, potentially in 2026.
The two regions depend on each other for natural gas shipments. Michelle Robichaud, president of the Atlantica Centre for Energy in New Brunswick, said most of the natural gas used in the Atlantic provinces arrives via pipelines through New England. Meanwhile, Repsol’s LNG terminal in New Brunswick provides crucial natural gas supplies for New England during particularly cold stretches when power plants need that gas the most. And the US imports uranium from Canada for use in nuclear generation.
Patrick Woodcock, chief executive of the Maine State Chamber of Commerce, said New England also relies on heating oil imports from the Irving refinery in Saint John.
Woodcock worries that the tariffs could curb the flow of hydroelectricity into New England, prompting several power plants in this region to fire up their back-up oil generators in the winter, causing more pollution.
“A tariff regime is a blunt instrument,” Woodcock said, speaking about the broad impact of the tariffs. “The situation you’re left with is your consumers are paying a higher cost. I think New England is particularly vulnerable for that occurring.”
It was unclear how quickly the 10 percent tariff on Canadian energy might affect electric bills. Typically, the region’s largest utilities buy their power on behalf of customers in advance, for six-month stretches. (All a spokesman for National Grid would say is that the company is “continuing to assess any impacts on our networks and customers.” )
Dan Dolan, president of the New England Power Generators Association, said in an email that while it’s up to the seller to determine how much of the 10 percent cost gets passed along from, say, the natural gas coming from Saint John or the power from Hydro-Quebec, historically tariffs and other taxes are embedded in the final sale price. (Dolan also noted that it’s currently unclear whether electricity generated at natural gas or nuclear power plants in Canada would be subject to the higher 25 percent tariff, or treated like hydroelectricity and other forms of energy, with the 10 percent tariff.)
“This has real potential to [add to] the inflationary pressures,” said Woodcock, a former top state energy official in Republican administrations in Maine and Massachusetts. “That will exacerbate the low-income households that are really struggling with a high percentage of their disposable income dedicated to energy.”
Jon Chesto can be reached at jon.chesto@globe.com. Follow him @jonchesto.