UPDATE: February 3, 2025 – 5:00pm: On Monday, February 3, the United States and Canada announced a deal to temporarily delay implementation of tariffs for 30 days. While tariff implementation is postponed for the moment, the United States and Canada still lack a comprehensive agreement to eliminate the use of new tariffs. If no deal is reached, the 10% tariff on Canadian energy, including natural gas, could take effect in early March. We are closely monitoring the situation and will provide customer updates here as they become available. Additional information is below.
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UPDATE: February 3, 2025 – 10:00am: You’ve probably seen in the news that the United States will levy tariffs on Canadian imports effective Tuesday, February 4, 2025. In response, Canada has announced measures of its own. We are providing this update so you have the latest information about what tariffs could mean for VGS customers.
VGS gets nearly 100% of its natural gas supply from Canada. While a 10% tariff on Canadian energy will mean a direct rate impact on our customers, our teams are working to mitigate increases wherever possible. We are evaluating rate impacts and, as of 8:00am Monday, February 3, we are awaiting Federal guidance that will help us forecast rate impacts.
It is important to know that these tariffs are not expected to impact the flow of gas across the Canadian border into our system. Gas will continue to flow, and VGS will continue to deliver safe and reliable energy to keep customers warm through these cold winter days and nights.
We have been coordinating with our State and Federal partners to advocate on behalf of our customers and all Vermonters. Our teams will continue these efforts as tariffs take effect and are closely monitoring with partners as the situation develops.
At VGS, our top priority is providing our 56,000 customers with safe, reliable, and affordable energy. We know you count on this service year-round, and that it’s especially important in the winter months, when heat is essential. While these headlines may cause alarm in our communities, we are committed to doing our part to provide you with the most up-to-date information. We will share updates on our website and other platforms as this situation develops.