Canada Gazette, Part I, Volume 160, Number 10: ORDERS IN COUNCIL
March 7, 2026
DEPARTMENT OF NATURAL RESOURCES
CANADIAN ENERGY REGULATOR ACT
Order — Designation of Powell River Energy Inc.’s electricity export application
P.C. 2026-167 February 26, 2026
Her Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, under paragraph 360(1)(a) of the Canadian Energy Regulator Act, designates Powell River Energy Inc.’s application for the exportation of electricity dated August 15, 2025 as an application in respect of which section 361 of that Act applies.
EXPLANATORY NOTE
(This note is not part of the Order.)
Proposal
The Minister of Natural Resources recommends that the Governor in Council (GC) make an order under paragraph 360(1)(a) of the Canadian Energy Regulator Act (CER Act) that Powell River Energy Inc.’s (PREI) August 15, 2025, electricity export application (Application) is one in respect of which section 361 of the CER Act applies.
Objective
The objective of the Order is to allow the Commission of the Canada Energy Regulator (Commission) to assess PREI’s application under the Canada Energy Regulator’s (CER) licensing process rather than the permitting process as detailed in the CER Act. Under the “permitting” process, a public hearing is not allowed, nor can the Commission use its discretion to reject an application. However, the “licensing” process would provide the Commission with options and flexibility, including discretion in its assessment process, which may include holding a public hearing; the ability to seek additional information from parties other than PREI; the ability to impose terms and conditions (subject to GC approval); and the option to reject the application following the assessment process.
Background
On August 15, 2025, PREI filed an application with the CER for authorization to export electricity to the United States (U.S.) under a contract-specific electricity export permit (Application).
The application would enable PREI to export the entire output of its electricity generating facilities for a 30-year period, authorizing the export of up to 700 000 megawatt-hours (MWh) of combined firm and interruptible electricity annually. The electricity to be exported would be produced by PREI at two of its own generating facilities in Powell River and Lois Lake, British Columbia, for sale to its affiliate in the U.S., BR Pacific Hydro Power LLC.
- The Application seeks to allow PREI to export electricity directly, without the use of an intermediary company, for a 30-year term from the date it is approved. PREI is a subsidiary of Brookfield Renewable. The Powell River generating facility is co-located with a former paper mill site that held a power purchase agreement with PREI. PREI supplied power to the paper mill from 2000 until 2021, exporting excess power to the U.S. during that period, and since the mill’s closure in 2021, PREI has been exporting all of the electricity from its generating facilities to the U.S. via export permits held by affiliate companies; the last of these permits will expire in 2031. The Commission’s evaluation of PREI’s 30-year export application does not affect existing export arrangements.
- Stakeholder concerns have been raised, including concerns with respect to the scale of exports (up to all electricity generated from the two facilities), the length of time requested (30 years) and fair market access issues. The CER has received 2 500 submissions, with most, if not all, opposing the Application, including submissions from BC Hydro, a Crown utility of the province of British Columbia, and the Tla’amin Nation, which both support a licence process.
- As stipulated by the CER Act, the Commission must consider several factors before recommending to the Minister of Natural Resources that the application be determined by the licensing process, including effects on other provinces, and fair market access for Canadian buyers.
- Fair market access ensures proposed electricity exports do not distort competitive opportunities for Canadian buyers (e.g. utilities or provinces) by prioritizing foreign sales, thereby safeguarding domestic participants’ ability to procure supply at reasonable prices and terms in interconnected markets; it includes providing domestic buyers with an opportunity to purchase electricity on terms and conditions as favourable as those specified in the export application.
The Commission issued an information request to PREI on November 13, 2025, including questions for PREI relating to the fair market access issue.
Having considered all of the submissions, including PREI’s responses, and having received the contracts with BR Pacific Hydro Power LLC, the U.S. buyers, the Commission has recommended that this Application be determined through a licensing process so that the Commission may fully consider the issues.
Implications
Implementation
The Commission will not issue a permit during the period that is necessary for the purpose of the GC making such an order to designate as a licensing process.
Financial
As an independent adjudicative tribunal, the Commission will lead all process requirements associated with this Application, supported by the CER, including engagement with interested parties. Whether or not the application is designated as a licensing process, the CER’s costs in assessing regulatory applications under the CER Act are recovered from industry; therefore, there are no funding implications.
Federal-provincial-territorial
There are no direct provincial/territorial implications as approval of electricity exports is within federal jurisdiction, although the volume of submissions makes it clear that local interest is very high.
Environmental
This application does not involve the construction of a new project or an expansion of the existing facilities; therefore, no new environmental impacts are expected as a result of any decision taken on this matter.
Consultations
Consultations for electricity export applications, including this Application, are handled entirely through the CER’s standardized processes.
On August 27, 2025, PREI filed notice and service documents relating to the Application, with a deadline for written submissions to be filed with the CER by September 25, 2025. The deadline was subsequently extended to October 9, 2025. Over 2 500 written submissions were received, with most, if not all, in opposition of the export permit. No parties raised concerns about impacts on neighbouring provinces.
Several letters requested that the Commission recommend that the Application be designated by the GC for a licensing process, and nearly all submissions took the position that the electricity should be available for domestic consumption within Canada.
Both BC Hydro and the Tla’amin Nation took the position that PREI had not satisfied the fair market access criteria and that the Commission should recommend that the Application be designated for a licensing process by GC.
In its assessment, the Commission determined that no concerns were raised regarding the effect of the exportation of electricity on other provinces.
Contacts
Erin Tabah
Director
Canada Energy Regulator
Telephone: 1‑800‑899‑1265 (toll-free)
Danielle Johnston
Director
Renewable Electricity Policy Division
Department of Natural Resources
Telephone: 416‑540‑4572