UPDATED March 6, 2025 – 8:00pm
We are providing this update to keep you informed about tariffs on energy imported from Canada.
On March 6, 2025, the United States announced tariffs on Canadian imports that were in effect starting March 4 would be temporarily paused until April 2. We expect the delay encompasses the 10% tariff on Canadian energy, including natural gas.
This policy has had multiple revisions since it was first announced in January 2025. Additional changes are possible. In the interest of transparency, we are leaving the update below in place so you have context for the estimated impacts of a 10% tariff on Canadian energy. The timing of any changes to customer rates is dependent on when and if the U.S. Government implements the policy. We will provide additional updates if more information becomes available.
PREVIOUS UPDATE March 4, 2025 – 12:15pm
You’ve probably seen in the news that the United States has levied tariffs on Canadian imports, including natural gas and other energy sources. We have been working to mitigate impacts since the policy was first announced in late January.
VGS gets nearly 100% of its natural gas supply from Canada. While a 10% tariff on Canadian energy means a direct rate impact on our customers, our teams are working to mitigate increases wherever possible. Based on currently available Federal guidance, we are providing the following estimates of rate impacts. Please note, these estimates are preliminary and could change:
- The annual gross impact of 10% tariffs on the natural gas supply we serve is between $6-7 million.
- The percentage change will vary based on the type of customer: for residential customers and nearly all commercial customers, we’re estimating a 3.5-5.0% overall rate impact; for larger industrial and interruptible customers, we’re estimating the overall rate impact will be between 6-9%.
We will address these tariffs through the regulatory process. Please note, changes to firm customer rates will not immediately take effect — they will be reflected in customer bills starting later this spring.
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.
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 recent headlines may cause alarm, 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.