Whitehorse Daily Star

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FALLEN WIRE – A downed power line is seen Sunday along Range Road. It was not believed to be storm-related.

Electricity rates may be on the rise

ATCO Electric Yukon has applied to the Yukon Utilities Board to increase electricity rates for the first time since 2017.

By Mark Page on July 24, 2023

ATCO Electric Yukon has applied to the Yukon Utilities Board to increase electricity rates for the first time since 2017.

If the company’s plans are approved, base rates would first go down 1.6 per cent on Sept. 1, then jump 6.8 per cent on Jan. 1, 2024 for an overall rise of 5.2 per cent from where they are now.

This does not take into account the fuel adjustment rider, which makes for an overall rate increase of 3.3 per cent over 2022 rates in September even with the reduction, and a projected 10 per cent total increase in 2024.

This fuel adjustment takes into account the actual cost of fuel needed to generate electricity versus estimated cost.

Jay Massie, ATCO’s vice-president of northern development, said they avoided rate hikes over the years due to efficiency and growth, but now money is needed to replace ageing infrastructure.

“Despite the rising costs of materials and services over the years, (ATCO) has managed to keep its costs and rate increases lower than the inflation rate,” he said in an email to the Star.

And now it’s time for some new kit, he says.

“These upgrades are essential to maintain a reliable and modern electric system for our customers,” he wrote.

Massie also addressed the reasons why they are seeking to reduce base rates for the rest of 2023, before raising them again in 2024.

He said overall growth in the Yukon has meant more customers spending more money on electricity, which in turn has meant ATCO is making more money than it projected.

This, along with money saved via tax benefits, means they can reduce rates for the rest of the year.

ATCO is limited on the percentage profit it’s allowed to make. It’s not supposed to exceed nine per cent of revenue, but has breached this cap for several years running now.

Energy, Mines and Resources Minister John Streicker told the Star last Monday the government has been working for a while with ATCO on a plan to try to get some of this money back into the hands of consumers.

“ATCO was making more money that was projected in their previous application,” he said.

“We’ve been working with them to get some rate relief to Yukoners as a result.”

Streicker said a growing population, new housing, new electric vehicles and rising demand from the mining industry have pushed up Yukon Energy consumption.

Shifts in the types of heating units people use have also contributed.

“We used to have more oil heat, now we have more electric heat,” he said. Most homes in Whistle Bend, for instance, have electricity as their primary heat source.

As the demand increased, it has pushed up ATCO’s profits. But Streicker said it also puts a strain on the infrastructure ATCO manages.

ATCO is in charge of most of the power distribution network in the Yukon, while Yukon Energy is generally in charge of power generation.

The costs linked to some of the equipment needed to maintain the grid have increased with inflation as well. And labour costs are up.

“It’s not just that demand’s going up, but infrastructure costs are going up as well,” Streicker said.

Lane Tredger, the NDP MLA for Whitehorse Centre, criticized the rate hike proposal, saying ATCO has exceeded its allowable profits for years and there is no reason for constituents to be shelling out more money so it can fix up the grid.

“ATCO has been making tens of millions of dollars for years and now they want to raise rates,” Tredger told the Star last Wednesday. “That is not fair to Yukoners.”

Tredger also called the decreased rates for this year a distraction from the fact ATCO has been raking in extra profits for six years straight.

The NDP provided statistics to the Star showing that ATCO has earned about $1.5 million per year more than it’s supposed to from 2017 to 2022.

Tredger said it’s up to the Liberal government to ensure Yukon residents get fair rates.

Though Streicker says the government wants to make sure not to subsidize ATCO in the process, he said the government does have a rate relief program in place for Yukoners that dates back to March 2022. The program has been expanded twice since.

Streicker says the current government is also willing to put money into grid improvements.

“We will continue to invest in the whole system to try and keep rates as low as possible,” Streicker said.

This all fits within the government’s Our Clean Future goals, as well as its pledge to support critical mineral extraction with more clean energy.

Long-term proposals from the Liberal party also include connecting the Yukon’s electrical grid to B.C.’s to tap into the hydroelectric power produced in the province.

Premier Ranj Pillai has made this a big part of his platform, and he is currently trying to secure federal funding to do feasibility work for the project.

ATCO’s goal was to get the initial rate reduction approved for Aug. 1, but the utilities board decided to allow input from interested parties on the reduction until Aug. 4. It will now not be able to go into effect until September.

For the full rate increase to be approved, there will first need to be public hearings before the board. Anybody who wants to participate in the hearings must register with the utilities board by Aug. 4.

As part of the process there will be a public information session on July 27 at 2 p.m. at the Kwanlin Dün Cultural Centre in the multi-purpose room. This “procedural conference” allows those wishing to provide input on the application to learn more about the process.

The main public hearings are currently set for Nov. 20-23. Actual rates will be set by the utilities board after the hearings.

“None of us can say where it lands now,” Streicker said.

Comments (19)

Up 0 Down 0

Paul on Aug 1, 2023 at 8:49 pm

@Robert... (the one who commented to Jake at 2:59pm on July 25)
Perhaps you should take your own advise and inform yourself before making a comment such as the one you posted last week. If you open the Yukon Energy Rate Schedules on their website (link provided), you will clearly see that the average residential customer pays 50% more than the rate that Victoria Gold pays per KW hour before the added delivery fees from Atco Electric Yukon which add another 50% +/- to the average residential users bills.
This rate also doesn't include the 100 million dollars of public money spent to run the new 138 KV line from Stewart Crossing to the mine site (replacing a 20 year old line from Mayo A&B which was capable of 10 megawatts in either direction and definitely not obsolete). Yukon energy claimed the line from Mayo to Keno had reached the end of its service life, but the existing 34KV line could have easily been upgraded for about 5-10% of this cost.
Lets face the facts:
1) No matter how much power Victoria Gold buys over the lifespan of their mine; the Canadian Taxpayer will be footing the $100,000,000 bill for getting power from the Stewart Crossing switch yard to the mine site.
2) From your post we must assume that at least 4 of those Diesels that everyone hates, are here to supply power to Victoria Gold in the Winter time.

This is not the first nor will it be the last mine that benefits from the Yukon Ratepayers. What happened to the 7 megawatts of diesel generation (worn out high rpm non efficient diesels) that were supposed to be turned over to Yukon Energy for a 1/2 cost contribution of the 6 million it cost to run the 75KV line into the last mine?
Also with the Minto in receivership who is going to run the 3MW Diesel you refer to, which could potentially back feed the switchyard at Minto Landing and help with Victoria Gold peak needs next winter. From what I hear the genset there has not run in years.
Either way you owe Jake an apology because your comment addressed to him is completely incorrect; although there is no doubt that YEC spills less water in the summer due to power generation for Vic Golds needs.

You can see for yourself here:
https://yukonenergy.ca/customer-service/rates/rate-schedules

Up 0 Down 0

Can we talk on Jul 30, 2023 at 10:10 pm

I would like to know if some wizard could give a brief comparison for heat/cooling cycle between a heat pump (in the news lots lately) and our Yukon code required HRV units.
I would also like to mention I like the HRV units as radon battlers.

Up 1 Down 0

drum on Jul 30, 2023 at 5:24 pm

When are the the costs going to end. We are just trying to put food on the table - every time we go into a grocery store the prices are more. And they tell us that their huge profits are not anything to do with them!!!!!!!!!!!!!

Up 0 Down 0

Jake on Jul 26, 2023 at 5:35 pm

@ Robert I am informed truth is we never benifit from the power generated to supply the mines. None stay long enough to pay back the investment. Faro was in existence for almost thirty years and the Ryder I payed for that closure was almost ten years. I am informed there just needs to be a better guarantee that we as ratepayers don’t get the tab for decisions we have no say in.

Up 1 Down 0

BB on Jul 25, 2023 at 5:52 pm

Incentive for us to get our own solar panels and battery bank, and use wood heat. This country is regressing in so many ways. But I'm okay with self-sufficiency. Working together for efficiency and economy of scale isn't working. Too many parasites while the working stiffs are considered to always be able to handle giving a little bit more to big corporations, the government and various dream schemes. Time to quit.

Up 41 Down 3

John on Jul 25, 2023 at 3:34 pm

@Humble Measure on Jul 25, 2023 at 10:17 am

What you describe is true and just for ATCO but the government as well. They say we haven't raised taxes. Yes, not personal but they now add an abundance of user fees. If it moves tax it! If it doesn't move - tax it too! That is taxation through the back door. Includes GST, carbon taxes, hike on camping fees, hike on vehicle registrations - the list goes on and on.

It is insidious to say the least. Similar to a slow eating cancer...

Up 21 Down 13

Robert on Jul 25, 2023 at 2:59 pm

@Jake - you are sadly, like many in this community, misinformed on the requirement for additional electrons to carry Yukon through the winter months. At the peak of usage during the coldest day this past winter (approx 127MW) Victoria Gold as an example utilized around 8MW or 6 percent.

Yukon Zinc, North American Tungsten are both off-grid and fully utilize to generate their own power. Minto also has a 3MW power plant which likely covers at least half their requirements. In addition all mine sites have generators on stand-by for peak shaving during the coldest days in this territory.

Population growth and electric heat are the main drivers behind winter utilization, and with the government continuing to grow (i.e. 450 new employees through the first 18 months of the pandemic), the increase in demand for electrons and thus increases in cost due to diesel generation.

Victoria Gold's power sharing agreement is why we as community members are paying almost 1/2 of what it would be without such an arrangement in place.

Please inform yourself prior to making a comment.

Up 43 Down 9

Robert on Jul 25, 2023 at 2:28 pm

I have a different opinion on this subject. How about the NDP quit focusing on the private industry, and start looking in the mirror in regards to their incompetence as it relates to basic economics.

**Green Energy Transition (i.e. electric baseboard heaters in every Whistlebend home and the relation to requirements for diesel generators, wind turbines purchased from the other side of the planet then transported via large ships that utilize bunker fuel, finally trucked up from the Port of Tacoma, not to mention the mass materials required to manufacture - anyone do a cost benefit analysis - not likely)

**Taxation (i.e. taxes keep going up not only for individuals but business as well - what's the relation to the cost of doing business and overall cost of living as our disposal income keeps getting squeezed under this current regime)

**Government Spending (i.e. all time record in Canada - what's the relationship to inflation, cost of living, etc.)

**Government regulation (i.e. red-tape and the impact on the private sector's cost of doing business)

End of day, I am not sure why profit is a dirty word, a thriving private industry does wonders for a community and general quality of life. Wait a minute the answer is simple - 70% of this town works for the government and has lots of time to complain about the guy from their social media account through their cellphone that wouldn't exist if it wasn't for the private industry.

I would bet if the Yukon government eliminated 25% of their workforce, it would have zero impact on public services which are already at an all-time worse under the L-NDP Alliance.

Sigh........

Up 45 Down 2

Humble Measure on Jul 25, 2023 at 10:17 am

ATCO power bills are so problematic. The billing formula includes so many junk fees and add-ons, each of my bills is nearly doubled by them. The entire billing process needs to be reformed.

Up 54 Down 3

Yukoner on Jul 25, 2023 at 7:47 am

Our "power" (government) system needs a total overhaul. Yukon Energy is run by a board of politicos, doing the bidding of the ministers. I'm all for efficiency and pollution reduction, but the reason we have 22 diesel generators the size of semi trailers (literally), is because of the government's green energy standards. That's some thick irony, eh? The government/utility board wouldn't build an efficient, permanent diesel plant that makes good use of our money. Instead, they have LEASED all of the generators, which has cost Yukoners more than 3x the cost of the permanent plant. So you see, all those "riders" you pay on your bill cover for that incompetence (and diesel). It's so Yukon, you can't even make it up!

It's time for the Yukon Government to take electricity distribution in house. Why are Yukoners paying a private company (Atco), which makes millions in profits, for our own resource?

Up 16 Down 22

Pierre on Jul 24, 2023 at 6:59 pm

Raise them 20% time to feel the pain of the so called Green Transition.

Up 27 Down 8

Jake on Jul 24, 2023 at 5:22 pm

We need a better way to price electricity in the Yukon. Not saying that the equalization rate across the board is not of value to the basic rate payer plan. It just that we cannot continue to carry the burden of large infrastructure projects like mines. Time they pay there own way

Up 16 Down 5

comen sense on Jul 24, 2023 at 4:58 pm

Before huge royalties were paid for example minto mine was the expense of the infrastructure like pole lines and transformers paid for first now that they folded

Up 25 Down 3

Gobsmacked on Jul 24, 2023 at 4:47 pm

This is an outrage! Are the Atco bonus receivers aware of the last ten recent interest rate hikes and now this. Christmas in July all right.

Up 26 Down 2

Resident on Jul 24, 2023 at 4:38 pm

What a shame that ATCO was forced to exceed the cap for multiple years when it could have used the extra funds to make infrastructure improvements while also staying below nine per cent. Truly, my heart weeps for this poor corporation that had no choice in the matter.

Up 20 Down 5

No way jose on Jul 24, 2023 at 4:37 pm

Why oh why the Yukon let a Alberta company buy Yukon energy lol Yukon should look at how BC does things power bill every two months what the price now $200 dollars a month

Up 32 Down 2

j2 on Jul 24, 2023 at 4:37 pm

More. More, more, more. If more gets approved, please adjust it so they aren't continually exceeding the allowed profit margin.

Up 37 Down 2

Daphne Privett on Jul 24, 2023 at 3:40 pm

People are having it so hard in the Yukon It going up to 6 percent how are people supposed to eat because I am sure that the food prices will go up more also this winter.

Up 42 Down 5

Wereall Johnston on Jul 24, 2023 at 3:22 pm

Hey John? We should rent more of those CAT mobile generators. Word on the street is they are super reliable, and have low emissions. There definitely doesn't need to be an actual CAT employee onsite every-time they are fired up, right? Reliably breaking down, and low emissions, because somethings always getting repaired so they are never on half the time, lol. The climate action plan strikes again. More money out of our pockets with nothing to show for it, except more frequent power outages. Send in the clowns. Or maybe Electro from the old 60s Spiderman cartoons, lmao.

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