Electricity Import Dependency and Cross-Border Transmission Issues

Definition

U.S. net electricity imports fell by 5 TWh in 2024 to 14 TWh—the lowest level since 2004—primarily due to poor hydroelectric output in Canada and transmission constraints. While imports are declining, some regions (particularly the Upper Midwest and Northeast) remain dependent on Canadian hydropower for seasonal peak capacity and renewable generation. Hydroelectric drought in Canada (weather dependent, unpredictable) creates generation gap risk for U.S. utilities dependent on power purchase agreements. Cross-border transmission capacity is fully utilized during peak seasons, preventing utilities from accessing cheaper generation sources or exporting excess capacity. Utilities with limited in-region generation resources face seasonal supply gaps that can only be filled by high-cost spot market purchases. Operations directors cannot rely on import availability for planning purposes, forcing maintenance of higher in-region reserves.

Why This Matters

Cross-border transmission capacity optimization, Canadian power market intelligence and contract management platforms, hydroelectric drought risk hedging and forecasting, regional supply/demand balance analytics, alternative generation sourcing for import-dependent regions

Affected Stakeholders

General Manager / Operations Director, Chief Financial Officer / Finance Manager

Related Business Risks