For decades, Canadian electricity exports have quietly underpinned the power supply for many parts of the United States, particularly in the Northeast and Midwest. This steady flow of clean hydroelectric power has supported industrial growth and economic stability on both sides of the border.
However, shifting energy policies, rising domestic consumption, and a broader push for energy self-sufficiency are forcing Canada to reconsider how much power it sends south—and whether those exports will continue at all.
For manufacturers in affected regions, this is far more than just a geopolitical development. It’s a real and present threat to operational stability. Electricity insecurity, whether through higher costs, more frequent fluctuations, or full-scale blackouts, puts production schedules, equipment health, and even worker safety at risk. Without proactive measures, facilities could be left scrambling for power alternatives—often at the worst possible time.
Understanding the risk, identifying your vulnerabilities, and creating a layered power resilience strategy is not just prudent—it’s essential for operational continuity in a rapidly evolving energy landscape. This article is written to give you a better overview of how electrical power could change, with expert advice from HESCO on how to prepare.
Canada has long been one of the largest electricity exporters to the United States, providing 27,220,531 megawatt hours (MWh) of electricity in 2024, according to the latest data from the U.S. Energy Information Administration (EIA). Most of this power originates from Canadian hydroelectric plants, which generate reliable, low-carbon electricity that complements the U.S. grid’s fluctuating needs.
However, this relationship is evolving. Canada’s own domestic electricity demand is rising, driven by population growth, industrial development, and increased electrification of transportation and heating. On top of this, Canada is aligning its energy strategy to prioritize national self-reliance and decarbonization goals. The result? Experts and policymakers increasingly warn that electricity exports to the U.S. could be reduced—or even eliminated—in the coming years.
This shift could have wide-ranging consequences, particularly for manufacturers in the Northeast and Midwest. These areas rely disproportionately on Canadian power, meaning any reduction in cross-border supply would amplify demand (and competition) for domestic sources. In practice, this means rising electricity prices, greater grid instability, and the heightened risk of rolling blackouts—especially during peak demand periods.
Manufacturers rely on consistent, high-quality power to maintain production. Any disruption, no matter how brief, carries operational, financial, and even safety risks. Understanding these risks is the first step in building resilience.
Unplanned power outages do more than just halt production. They disrupt finely tuned supply chains, create rework and scrap from interrupted processes, and jeopardize on-time delivery commitments. For many manufacturers operating in just-in-time environments, even a short outage can trigger costly ripple effects across multiple orders and customers.
Even if the grid avoids outright blackouts, instability can be just as dangerous. Voltage sags, spikes, and frequency fluctuations put undue stress on sensitive electronics and automation systems. Motors, drives, PLCs, and sensors all suffer when exposed to poor-quality power, increasing both failure rates and long-term maintenance costs.
Power instability also has human impacts. When machines stop abruptly mid-cycle, they can leave workers exposed to hazardous conditions. Emergency shutdowns triggered by power issues add a layer of unpredictability to an already complex work environment, heightening the risk of accidents.
The good news is that manufacturers can proactively manage these risks. By investing in a comprehensive power resilience strategy, you not only protect against Canadian export reductions but also gain insulation from local weather events, infrastructure failures, and other unpredictable grid events.
A UPS serves as the first line of defense for critical automation systems. The moment a power fluctuation or outage occurs, the UPS kicks in to provide temporary backup power. This seamless transition prevents automation crashes, motor stalls, and data corruption.
If your facility previously relied on Rockwell’s 1609 UPS series, you should know that these models have been discontinued. Fortunately, there are replacement options available, including models from third-party providers like Tripp Lite. Selecting the right UPS for your environment requires understanding your load, runtime requirements, and the criticality of each system protected.
While a UPS can bridge brief outages, extended disruptions require a backup generator. Whether diesel, natural gas, or even renewable-fueled, a properly sized generator can sustain production for hours—or days—if necessary.
However, owning a generator is not enough. Regular maintenance, periodic load testing, and fuel management are all critical to ensuring the generator performs when needed. Without these disciplines, your emergency backup could fail at exactly the wrong time.
Resilience is not just about keeping the lights on—it’s also about keeping your equipment safe. Power quality monitoring devices track voltage, frequency, and harmonics in real-time, allowing you to spot issues before they cause damage. Combined with industrial surge protectors, these devices filter out harmful spikes and transients, safeguarding sensitive controls and automation assets.
If you’ve never conducted a formal power quality audit, now is the time. Understanding the baseline health of your incoming power helps you justify (and prioritize) investments in additional protection.
For forward-looking manufacturers, energy storage and smart load management offer a higher tier of resilience. Industrial battery systems can provide backup power for critical loads without the noise, emissions, and fuel dependency of generators. Paired with smart load shedding, which temporarily powers down non-essential equipment during an outage, these systems can dramatically extend your operational window during emergencies.
Battery storage also offers economic benefits during normal operation, allowing facilities to store low-cost power for use during peak rate periods—a particularly valuable feature if electricity prices rise due to reduced Canadian exports.
Some manufacturers hesitate to invest in power resilience because they see it as a “what-if” expense. But the reality is that power instability is already a fact of life—and the costs of unpreparedness far outweigh the price of prevention.
Consider the direct costs of a power-related shutdown: lost production, scrap, overtime, and missed delivery penalties. Now add the indirect costs—customer dissatisfaction, regulatory risks, and reputational damage. Compared to these, the cost of a robust power strategy is modest.
Furthermore, resilience investments often pay for themselves through improved equipment uptime, lower maintenance costs, and reduced peak demand charges. Facilities that integrate UPS systems, generators, and power quality management consistently report lower total cost of ownership for their automation assets.
At HESCO, we understand the unique power challenges manufacturers face, especially those operating in regions dependent on Canadian electricity imports. Our team works with customers to design tailored power resilience strategies, combining proven technologies with industry best practices.
Whether you need guidance selecting a UPS replacement, support designing a backup generation plan, or advice on advanced power monitoring, our specialists are here to help. The time to act is before the grid becomes unreliable—not after.
Contact HESCO today to schedule a power risk assessment for your facility. Together, we’ll build a resilience plan that keeps your operation running smoothly—no matter what happens with Canadian power exports.