While Yukon Energy and Yukon Electrical Company Ltd. are at odds over planning for long-term energy needs, Premier Dennis Fentie insists there should be no confusion.

Mid-November hearings scheduled by the Yukon Utilities Board to review Yukon Energy's 20-year resource plan are nothing more than a review of the Crown corporation's vision, Fentie said this morning.

The premier said any of the four primary projects outlined in the resource plan will have to go back before the board to be scrutinized individually before they will be allowed to proceed.

The Yukon Party government, he said, is not about to get into the situation the Liberals found themselves in with the mismanagement of the Mayo-Dawson line that was built without any review by the utilities board.

An August 29 letter to the board from Justice Minister Elaine Taylor speaks for itself, Fentie said.

The letter reads, in part: 'It is our government's understanding that no final decision has been made to implement any of the proposed projects. However, the Resource Plan and the input received as a result of your review will be valuable in assisting YEC in planning and decision making in the future. Of course, any specific projects to be implemented by YEC will be subject to various regulatory approvals and reviews. In addition, we would like to note that prior to the implementation of any proposed significant energy projects by YEC (e.g. construction of the Carmacks to Stewart transmission line), it is the government's intention to refer the details of such projects to the YUB for review and recommendation under the provisions of Part 3 of the Public Utilities Act.'

Based on the minister's letter, Yukon Electrical, which distributes the bulk of the electricity in the territory, wrote the utilities board this week to indicate it will not be participating in the November hearings.

The Alberta-owned company said it would be a duplication of process and expense to participate in the November hearings on Yukon Energy's 20-year plan, and again into hearings on each of the four individual proposals.

It would be a duplication of expense paid by Yukon Electrical and Yukoners, as the cost of regulatory hearings or a large portion of the cost is typically passed on to consumers, Yukon Electrical said.

'Given these considerations, YECL will no longer actively participate in the current review of the YEC's 20 Year Resource Plan; but will focus its attention on the significant regulatory projects that are expected to be brought before the Yukon Utilities Board under Part 3 of the Act,' reads Yukon Electrical's letter to the board. 'This should alleviate any duplication concerns, at least with respect to YECL's involvement.' In its 20-year resource plan, Yukon Energy is proposing to spend in excess of 45 million dollars, the bulk of which would be spend in the next five years. It is proposing to build the Carmacks-Stewart powerline extension for $31.2 million, of which $18 millon to $20 million will be needed immediately for the Carmacks-Pelly portion; install a third turbine at the Aishihik power dam for $7 million; refit the four diesels at the Whitehorse dam with a 20-year upgrade for $6.4 million; and increase the amount of water it stores in Marsh Lake system during a six-week period in the fall for $1 million.

David Morrison, head of Yukon Energy, said Thursday the publicly-owned corporation is proceeding with its belief that the November hearings will be all that is required to receive approval of the 20-year plan and each of the four projects.

From Yukon Energy's point of view, there will be no further requirement for additional hearings into the individual projects after the November hearings, he emphasized.

Morrison said Yukon Energy is proceeding on instructions from the utilities board to bring forward all relative material for full review of the 20-year plan, including all material relative to the individual projects.

Under the Public Utilities Act, the Yukon government must specifically request that individual projects receive individual scrutiny.

In its order last week, acting board chair Wendy Shanks makes note of the Aug. 29 letter from the justice minister, but points out there have been instructions from government to review the projects individually.

The board, therefore, will act on the original June request from then Justice minister John Edzerza for a full review of the 20-year-resource plan and the proposals it contains, says the board's order.

Morrison said Yukon Energy will be spending several hundred thousand dollars to prepare for the November hearings.

The government, Morrison explained, could at any time direct the energy corporation to conduct board hearings into the individual components of the 20-year plan.

It remains the intent of Yukon Energy to receive approval of the individual projects, and immediately proceed with planning, design and construction of the Carmacks-Pelly phase of the transmission line extension in 2007, he said.

Morrison pointed out in addition to the utilities board process, Yukon Energy will also have to have a full screening of the individual projects by YESAA. He expects the application for the Carmacks-Pelly line to go before YESAA within a month.

Timelines to begin building the line next year, he acknowledged, are extremely tight.

He said the project is a priority, as there are a couple of mining initiatives, like Sherwood Copper's Minto project, that could be sitting there waiting to buy what is currently surplus energy.

Asked about Yukon Electrical's decision to pull out of the November hearings and wait for hearings on the individual projects down the road, Morrison said he could not speak on what Yukon Electrical was up to.

'To me, quite frankly, I think it is a little gamesmanship,' Morrison said, reiterating Yukon Energy is proceeding on instructions from the board.

He did note, however, that after the power line extension is built, Yukon Energy will have to go back before the utilities board to see how much of the installation cost all of it or some of it could be justifiably attached to the rate base.

Fentie said he would not comment on Morrison's suggestion that the November hearings is all that Yukon Energy expects to require in terms of review.

Morrison, said the premier, is the chief executive officer of a corporation.

The government will decide what will be done to review the specific projects, and each one will be subject to a specific review in addition to November hearings, he reiterated.

Roger Rondeau of the Utilities Consumers Group said he understands what Yukon Electrical's position is, but the consumers' group is going to participate in the November hearings nonetheless.

'We are going to stay in there,' he said. 'Somebody has to follow these guys. Like I say, I think they are going to try to pull this thing through, and go ahead.'

Rondeau confirmed that for the first time, the consumers' group will be represented by a utility lawyer. A lawyer with the Public Interest Advocacy Centre in Ottawa an organization that specializes in utility hearings has agreed to represent the group, he said.

Rondeau has indicated in the past that these hearings will be particularly complex are far as utility hearings go.

For instance, he pointed out, under the rules, commercial consumers are required to pay 100 per cent of any costs associated with supplying them energy.

Is Yukon Energy's decision to add a third turbine at Aishihik in anyway related to the future needs of Sherwood Copper, and if so, should not the mining company pay for some of the capital costs of the turbine, Rondeau has asked.

He also noted that if Yukon Energy is viewing the November hearings as the full-blown deal, it better provide all the information that's been requested.