VEC Message to Members: Potential Tariffs on Energy Imports from Canada

The situation regarding potential tariffs on energy imports from Canada continues to evolve. VEC has been diligently evaluating the developing situation and coordinating with our Vermont and regional energy partners and regulators.

We want to emphasize that if tariffs are ultimately imposed, we are not concerned about the continued reliability of service. Power will continue to flow onto our system and VEC will continue to supply members with the energy they depend on us for.

We are, however, concerned about the financial consequences if tariffs are ultimately imposed. About 42 percent of VEC’s 2024 power supply was procured from Hydro-Quebec (HQ). If the cost of this power supply were to increase by 10 percent it would cost VEC members in the range of $2 million this year, which would equate to just over a 2 percent increase over current rates.

VEC will continue to work to obtain accurate and timely information regarding potential tariffs. While we are relieved to see the postponement of the proposed tariffs, we will continue to prepare in case tariffs are implemented in the future. We are committed to doing everything possible to mitigate any financial impacts.

We will communicate any significant updates as they become available. We appreciate your interest, your inquiries, and your understanding as this situation continues to sort out. Thank you.