President Trump announced this week that 25% tariffs on Canadian and Mexican exports to the U.S. will begin on Saturday, potentially affecting Oregonians who rely on natural gas from Canada. Oregon is heavily dependent on Canada for crude oil, natural gas, and electricity, especially for natural gas, which could lead to increased prices for consumers. This could exacerbate the already steep rate increases that ratepayers have experienced in recent years.
Experts have expressed concern over the potential impact on consumers, as energy markets are dynamic and tariffs could affect the cost of wholesale electricity. The American Petroleum Institute has called for exemptions for crude oil and natural gas from tariffs, warning of negative impacts on affordability and availability for consumers.
U.S. Senator Ron Wyden criticized Trump for not consulting with experts and making decisions based on personal motives rather than long-term benefits for Americans. The Pacific Northwest, including Oregon, relies heavily on Canadian natural gas due to geographic proximity and existing pipeline networks, with two-thirds of Oregon’s natural gas supply coming from Canada.
While utilities typically protect themselves from immediate price swings with long-term supply contracts, the impact of tariffs on these contracts is unclear. State regulators are monitoring the situation closely and will assess any impacts on power costs and consumer rates on a case-by-case basis. As the situation unfolds, consumers are advised to stay informed about potential changes in energy prices and utility rates.
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