Canada’s electricity trade with the United States could see new activity after two energy companies submitted applications seeking permission to export a combined maximum of 12.1 million megawatt-hours annually over the next decade.
The applications, published in the Canada Gazette on October 10, 2026, come from EDF Trading North America, LLC and THN Capital US LLC. Both are seeking authorization from the Canada Energy Regulator to participate in cross-border electricity sales.
The proposed volumes are substantial, but neither application represents a confirmed electricity sale or an approval to begin exporting the full requested amount.
The filings also raise important questions about Canada’s electricity supply, opportunities for domestic buyers and the increasingly important relationship between Canadian power producers and American energy markets.
Two Applications Could Open the Door to Significant Electricity Exports
The Canada Energy Regulator has received two separate applications requesting authorization to export electricity from Canada into the United States. Both applications were dated October 1, 2026, and appeared in the October 10 edition of the Canada Gazette. EDF Trading North America is seeking permission to export up to 10 million megawatt-hours annually across two categories of electricity service. THN Capital US LLC is requesting authorization for an additional 2.1 million megawatt-hours per year. Together, the applications represent a combined annual authorization ceiling of 12.1 million megawatt-hours, equivalent to 12.1 terawatt-hours.
Both companies are requesting permission for a 10-year period, indicating interest in maintaining long-term access to the cross-border electricity market. However, the applications are regulatory requests rather than contracts requiring electricity to be delivered. The actual amount exported would depend on market conditions, available electricity supplies, transmission arrangements and commercial transactions. The regulator has invited submissions from interested parties before completing the applicable review process. That opportunity for public scrutiny is particularly important because Canadian electricity exports involve both national regulatory oversight and provincial energy markets.
EDF Trading North America Seeks Authorization for 10 Million MWh Annually
EDF Trading North America accounts for the largest share of the proposed export volumes. Its application requests authorization to export up to five million megawatt-hours of firm electricity annually and another five million megawatt-hours of interruptible electricity. The proposed authorization would remain in effect for 10 years if granted on the terms requested. The distinction between firm and interruptible electricity is important because the two categories carry different delivery commitments. EDF’s request therefore offers flexibility to participate in transactions with different scheduling requirements rather than relying on a single type of electricity sale.
EDF Trading North America is part of the broader EDF Trading organization, which operates in international wholesale energy markets. The company has an established presence in Houston and provides services involving electricity trading, energy portfolio management, market access and risk management. Its business includes helping electricity generators and retailers manage energy purchases, sales and market exposure. That commercial background makes cross-border electricity trading a natural area of interest. Still, the published Canadian notice does not establish that EDF has already secured customers or committed to buying the entire proposed volume. The application establishes the maximum amount the company wants permission to export, not a guaranteed level of future business.
THN Capital US LLC Seeks a Separate 2.1 Million MWh Export Permit
The second application comes from THN Capital US LLC, which is seeking authorization to export up to 2.1 million megawatt-hours annually for a 10-year period. Unlike EDF’s application, which lists separate maximum volumes for firm and interruptible electricity, THN’s request combines both categories under one overall annual limit. That distinction matters when calculating the total amount requested by the two companies. THN is not asking for 2.1 million megawatt-hours in each category. Its published application sets a combined maximum of 2.1 million megawatt-hours annually, regardless of how the electricity is divided between firm and interruptible transactions.
The regulatory notice identifies THN Capital US LLC as the applicant but does not specify the generating facilities, provinces or American customers associated with the proposed exports. Those details should not be assumed from the requested volume alone. The company must still proceed through the federal authorization process, and the public has an opportunity to raise questions about the proposal. Although THN’s requested volume is considerably smaller than EDF’s, it remains a meaningful quantity of electricity. The application demonstrates that interest in Canadian electricity exports extends beyond a single large energy-trading organization.
Firm and Interruptible Electricity Have Different Delivery Commitments
The two applications use technical language that has significant implications for how electricity would actually be delivered. Under federal electricity regulations, firm energy refers to electricity intended to be available at specified times throughout an agreed delivery period. Interruptible energy, by comparison, can be reduced, suspended or stopped under the terms of the sales agreement at the supplier’s option. Both arrangements are common ways of structuring electricity transactions, but they serve different customer needs. A utility seeking dependable electricity for a particular period may value firm supply, while a buyer able to adjust purchases could find interruptible energy attractive.
For example, an American electricity buyer might arrange firm deliveries to support expected consumption during periods of high demand. Alternatively, an interruptible arrangement could allow a Canadian supplier to take advantage of favourable market prices while retaining greater flexibility over deliveries. The distinction does not mean interruptible electricity is inherently unreliable or that the buyer will necessarily experience an outage. It describes the contractual rights governing delivery. For EDF and THN, these categories define the types of exports covered by their requested authorizations and help explain why the maximum approved volume may differ considerably from the amount ultimately sold.
The Requested 12.1 Million MWh Is Significant Compared With Existing Trade
The combined proposed export ceiling becomes more meaningful when compared with Canada’s established electricity trade. According to the Canada Energy Regulator, Canada exported approximately 32.7 terawatt-hours of electricity to the United States in 2025, generating about C$3.3 billion in export revenue. The 12.1 terawatt-hours requested by EDF and THN represent approximately 37% of that historical annual export volume. That comparison illustrates the scale of the applications, although it does not mean electricity exports would automatically increase by 37% if the authorizations were granted.
Canada’s total electricity generation provides another perspective. Statistics Canada reported that the country generated approximately 625.2 million megawatt-hours of electricity in 2025. The combined authorization ceiling represents roughly 1.9% of that annual output. These figures should not be interpreted as an assessment of how much electricity is available for additional exports. Some authorized transactions could involve electricity already traded through existing arrangements, and companies may export far less than their limits. The comparison instead highlights why applications involving millions of megawatt-hours attract regulatory attention, particularly when electricity demand and generating conditions vary considerably between provinces.
Canadian Buyers Must Receive a Fair Opportunity to Purchase Electricity
One of the central safeguards in Canada’s electricity export system concerns fair market access for domestic buyers. Under section 359 of the Canadian Energy Regulator Act, the regulator must consider whether exporters have informed interested Canadian purchasers about the electricity available for sale and provided an opportunity to negotiate on conditions as favourable as those offered for exports. This requirement is particularly relevant for businesses, utilities and other eligible purchasers seeking reliable electricity supplies. It is intended to prevent domestic customers from being unfairly excluded simply because an exporter sees commercial opportunities in the United States.
However, fair market access does not mean every Canadian household or business receives an automatic right to purchase electricity before American customers. The regulator’s guidance distinguishes between a genuine opportunity to negotiate and an unconditional right of first refusal. Interested buyers generally need access to the relevant transmission system and the legal ability to purchase electricity within their provincial market. They must also demonstrate serious purchasing interest. For the two current applications, the regulator specifically invites submissions addressing whether interested Canadian buyers were informed about available volumes and given appropriate opportunities to purchase. That requirement creates an avenue for domestic concerns to be considered before export authorizations are finalized.
Regulatory Permission Does Not Guarantee That Electricity Will Be Exported
An electricity export permit establishes legal permission to conduct transactions within approved limits. It does not necessarily mean that a company has signed long-term customer agreements, reserved transmission capacity or secured guaranteed supplies from specific generating stations. The Canada Energy Regulator allows companies to apply for blanket electricity export permits covering periods of up to 10 years, even when detailed export sales arrangements have not been negotiated. Separate procedures apply to certain contract-specific arrangements and the construction of international power lines. These distinctions are important when interpreting EDF’s and THN’s applications.
Even if the companies receive the requested authorizations, commercial and operational conditions will determine how much electricity crosses the border. A Canadian supplier must have electricity available to sell, while the transaction must be commercially attractive to a buyer and capable of being accommodated by the transmission system. Electricity prices can change from hour to hour as demand, generation and weather conditions fluctuate. Authorized exporters must also report their actual electricity trading activities to the regulator, generally on a monthly basis. Consequently, approval would create the opportunity to participate in cross-border trade, not an obligation to deliver 12.1 million megawatt-hours every year.
Canada and the United States Already Share a Highly Connected Electricity Market
Electricity trade between Canada and the United States is an established part of North America’s energy infrastructure. According to the Canada Energy Regulator, 86 international power lines connect Canadian provinces with American states. These connections allow utilities and electricity traders to move power across the border, helping balance supply and demand between neighbouring electricity systems. In 2025, Canada exported approximately 32.7 terawatt-hours of electricity to the United States while importing 22.1 terawatt-hours. Those imports were valued at approximately C$1.4 billion, demonstrating that electricity trade moves in both directions rather than exclusively from Canadian generators to American customers.
The relationship is particularly important for regions connected to large cross-border transmission networks. British Columbia trades electricity with western American markets, Manitoba supplies and purchases power through connections to the Midwest, and Ontario and Quebec participate in northeastern electricity markets. The regulator estimates that Canada supplied approximately 81.3% of America’s imported electricity in 2025. These connections allow neighbouring jurisdictions to manage differences in electricity demand, generating conditions and wholesale prices. However, the presence of existing transmission lines does not guarantee that EDF or THN could deliver their proposed maximum volumes. Actual transactions must still fit within available network capacity and applicable market arrangements.
Drought and Domestic Demand Could Limit Future Export Opportunities
Canada’s ability to export electricity depends heavily on conditions affecting its domestic generating system. Hydroelectric power remains the country’s largest source of electricity, accounting for approximately 54.9% of total generation in 2025. Statistics Canada reported that hydroelectric generation reached 343.4 million megawatt-hours that year, only slightly above the record low recorded in 2024. Persistent drought conditions in several regions reduced the amount of water available for electricity generation, contributing to weaker export volumes and greater reliance on electricity imports during certain periods.
These developments highlight why export authorizations should not be confused with guaranteed supplies. A hydroelectric producer facing low reservoir levels may have less electricity available for sale, regardless of how much an electricity trader is legally permitted to export. Domestic consumption can also rise during periods of extreme temperatures, reducing the amount of surplus power available for cross-border transactions. Other generating sources, including nuclear, natural gas, wind and solar, contribute to Canada’s electricity supply, but their output and availability vary. The current applications do not identify a particular generating technology in the published notices, so their environmental implications cannot be determined from the requested export volumes alone.
Rising American Electricity Demand Creates Potential Market Opportunities
The American electricity market is experiencing rising demand from several sources, including data centres, industrial facilities and the increasing use of electricity across the economy. In its October 6, 2026, Short-Term Energy Outlook, the U.S. Energy Information Administration projected wholesale electricity prices averaging approximately US$52 per megawatt-hour across the major hubs it tracks during 2026, about 11% higher than in 2025. Extreme weather and regional supply conditions have contributed to price volatility. These market developments help explain why electricity traders may value the flexibility to arrange purchases and sales across international borders.
Growing demand does not automatically translate into profitable opportunities for every Canadian exporter. Wholesale electricity prices differ substantially between American regions, and transmission charges, congestion, currency movements and the timing of deliveries can influence individual transactions. An exporter could find attractive opportunities during periods of strong American demand but face less favourable economics at other times. EDF’s experience in wholesale energy markets could support its ability to navigate those fluctuations, while THN would also need commercially viable trading arrangements. Neither company’s published notice identifies an American data-centre customer or establishes that the applications are directly connected to the expansion of artificial intelligence infrastructure. Those possibilities remain unconfirmed.
Public Consultation Will Determine the Next Steps for Both Applications
Interested parties now have separate opportunities to provide feedback on the two proposed export authorizations. For EDF Trading North America, written submissions must be filed by October 31, 2026, with the company permitted to respond by November 15. The deadline for submissions regarding THN Capital US LLC is November 10, followed by a November 25 deadline for the applicant’s responses. Participants are asked to address matters including potential effects on other Canadian provinces and whether interested domestic purchasers have been offered fair market access. Submissions can be made through the Canada Energy Regulator’s electronic filing process.
After reviewing the applications and relevant submissions, the regulator may proceed with the ordinary permit process or recommend that an application be designated for a more extensive licensing procedure. The notices do not announce final approval dates, export commencement dates or binding electricity supply agreements. Those details remain subject to subsequent regulatory and commercial developments. For Canadian electricity producers, the applications point toward continuing commercial interest in the American market. For regulators and domestic electricity buyers, they underscore the importance of maintaining a balance between export opportunities, reliable electricity supplies and fair access to energy within Canada. The immediate question is whether the two companies receive authorization; the longer-term question is how much electricity they ultimately export.
