U.S. electricity exports to Canada have increased since September 2023

For the better part of two decades, Canada has exported significantly more electricity to the United States than it imported. However, in the fall of 2023, electricity trade between the two countries became more balanced. The shift was due partly to Canada’s reduced hydropower generation, the country’s primary source of electricity generation, as drought conditions reduced inflow to reservoirs in western Canada. In addition, lower natural gas prices in the United States reduced power prices, making U.S. electricity more competitive.