Understanding Powell River Energy Inc.’s electricity export application
The regulatory process for the Powell River Energy Inc. (PREI) application for a 30-year electricity export permit is unique. The CER routinely reviews applications for electricity export permits. This is the first time, however, the Commission of the Canada Energy Regulator (CER) recommended that the Governor in Council (GIC) designate an export application for a licensing procedure instead of an export permit process.
About the application
PREI operates hydroelectric facilities at Powell Lake and Lois Lake in Powell River, B.C. For many years, these facilities supplied power to a local pulp and paper mill while also exporting extra electricity to the United States. When the mill closed in 2021, all electricity generated by the facilities began being exported to the United States.
Now, PREI has applied for a 30-year contract-specific electricity export authorization from the CER. The application has attracted attention in Powell River, where the generating facilities have been part of the local economy and community for many years and set in motion a review process that has resulted in a first-of-its-kind licensing procedure.
CER’s role as a regulator
The CER regulates exports of electricity from Canada. Power plants and electricity generation facilities are regulated by the province where they are located.
Electricity export applications are different from oil and gas pipeline applications. While the CER Act allows the Commission’s review of pipeline applications to consider broader community and economic impacts, its review of an export license application involves different criteria, namely assessing:
- The impact of the exports on other provinces
- Fair market access, which ensures purchasers of electricity for consumption in Canada who have expressed interest are informed of and have an opportunity to buy the electricity proposed for export on similar conditions.
For PREI’s export application, these criteria shaped who could participate in the hearing process. Those wanting to participate had to explain how their concerns related to those two requirements, the list of issues, or any conditions that could be included in the license.
The hearing process so far has included opportunities for the participants to question each other in writing, file evidence and comment on draft conditions.
The process
Shortly after submitting its application, PREI published a notice on Aug. 23, 2025, inviting interested parties to provide comments to the CER, resulting in over 2500 submissions. This opportunity to comment was part of the original permit application process, before the application was designated for licensing.
Submissions from parties including BC Hydro and Tla’amin Nation raised concerns relating to fair market access which, under the CER Act, requires electricity exporters to offer electricity to purchasers for use in Canada first. Other submissions requested a licensing procedure.
There are different paths the Commission of the CER can take when it receives an application for an electricity export permit:
- review the export application (which must contain information required in CER Act) and issue a permit including any necessary conditions without holding a public hearing, or
- recommend that the GIC designate the application as requiring an export license, which could involve some type of a hearing process and the potential of imposing conditions related to issuing a license.
In recommending that the GIC designate an application for a license process, the factors the Commission must consider mirror those in the permitting process:
- The impact of the exports on other provinces
- Fair market access, which ensures purchasers of electricity for consumption in Canada who have expressed interest are informed of and have an opportunity to buy the electricity proposed for export on similar conditions.
If the GIC designates an application for a license, the Commission has discretion as to its assessment process, including holding a public hearing. The Commission also has discretion to issue a license, subject to GIC approval with any terms and conditions on the license that it considers appropriate, or to deny the application.
After reviewing PREI’s application and the submissions, the Commission of the CER recommended that the GIC designate the application for a licensing process. The GIC directed this change on Feb. 26, 2026.
On April 10, 2026, the Commission informed PREI and the intervenors, which include BC Hydro and Tla’amin Nation, of the steps involved in the review process. In June 2026, the Commission confirmed several additional intervenors in the process, including the City of Powell River.
Read more about this process on the project webpage.
What's next?
The next stage of the licensing process is the oral hearing scheduled for Nov. 16-20, 2026, in Powell River, B.C. At the hearing, PREI and intervenors will have the opportunity to question one another orally on their evidence and present arguments to the Commission.
If you're interested in following along, you can tune in to the livestream on our website. If you're in the area, you're also welcome to attend in person:
Powell River Town Centre Hotel
4660 Joyce Avenue
Powell River, BC V8A 3B6
*timing to be confirmed on our website.
As the review continues, the CER remains committed to conducting a fair, transparent, and evidence-based process while ensuring its decision is guided by the requirements of the CER Act.
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