FR 2021-03401

Mercuria Commodities Canada Corporation (MCCC) has submitted an application seeking approval from the United States Department of Energy (DOE) to export electric energy from the United States to Canada. This initiative is in accordance with the Federal Power Act, and MCCC, a subsidiary of the Swiss company Mercuria Energy Group Holding S.A., assures that these exports will not disrupt U.S. electricity supplies. They plan to utilize surplus electricity acquired from various U.S. suppliers. The DOE has opened this application to public scrutiny and has set a deadline of March 22, 2021, for the submission of comments, protests, or motions to intervene.

General Summary

The document represents a formal notice of MCCC’s application to transmit electricity across national borders. It outlines the procedural aspects of the application process while briefly touching upon the company’s structure and intent. MCCC claims that their operation will not interfere with the sufficiency or operations of electricity supplies within the United States. Stakeholders, such as members of the public and other interested parties, are encouraged to participate by submitting their views before a decision is made. The DOE emphasizes that final approval will be contingent on evaluating both environmental impacts and impacts on the U.S. electricity supply system.

Significant Issues and Concerns

There are several issues and areas of concern evident from the document:

• Lack of Detailed Impact Analysis: The document does not explicitly state how MCCC plans to ensure that their exports will avoid impairing U.S. electricity supply. The assurances provided by MCCC are vague and lack substantive detail.

• Environmental Impact Evaluation: While the DOE mentions that they will assess the environmental impacts, the document does not specify what criteria or standards will be used in this evaluation. Clear guidelines on this process would be beneficial for all stakeholders.

• Regulatory and Procedural Clarity: The document uses regulatory language and references legal codes that may not be clear to the general public. This might hinder effective public participation in the commenting process.

• Public Participation Process: The instructions for public participation are succinct, leaving out specifics on how the process works or how individuals can effectively engage. Providing more accessible guidance would empower more people to contribute their views.

Potential Impact on the Public

The document underlines a matter that could have broad implications. On the surface, exporting surplus electricity might benefit both U.S. suppliers and Canadian consumers. However, if not carefully managed, the exports could unintentionally strain local electricity resources, potentially leading to higher costs or reduced reliability for U.S. consumers. An assurance from MCCC is embedded in the document, but further transparency and details would help assuage public concerns.

Impact on Specific Stakeholders

For specific stakeholders, such as U.S. electricity suppliers, this move might open up new business opportunities by allowing them to sell excess electricity, thereby optimizing profits. Conversely, consumer advocacy groups may have concerns related to domestic electricity costs and supply reliability. Environmental groups may also be interested in how increased electricity transmission could impact ecosystems or contribute to infrastructure expansion.

Exportation of electricity across borders involves complex considerations. This document, while initiating the process, raises significant questions that warrant thorough examination to balance business interests with public good and environmental responsibility. Enhanced transparency and communication will be vital in resolving these concerns as the regulatory process unfolds.