Get ready to dig deeper for another power rates boost
Monthly electrical bills will be going up again July 1, but by how much is still unknown.
Monthly electrical bills will be going up again July 1, but by how much is still unknown.
The Yukon Utilities Board finalized its decision Monday regarding Yukon Energy's application for a rate increase in 2012 and 2013.
Beginning July 1, for the average home or business using 1,000 kilowatts hours of electricity, the monthly bill will rise by $6.40 over the June 1 bill, according to Yukon Energy calculations.
The board, however, has also received an application for a further rate increase from the Yukon Electrical Co. Ltd.
As part of Yukon Electrical's application filed May 27, the company is asking for temporary approval beginning July 1 for an additional $8.84 per month for the first 1,000 kwh, while the utilities board considers its application.
With the board's approval of Yukon Energy's rate increase, the monthly residential and commercial bill for the first 1,000 kilowatt hours will rise July 1 from $130.36 to $136.76, according to Yukon Energy's calculations.
The $136.76 includes the GST, and a fluctuating fuel rider of $1.90, and it is the amount after the government's maximum monthly subsidy of $26.60 has been subtracted.
The board is expected to rule this week – or even this afternoon – on Yukon Electrical's request for an interim increase.
If Yukon Electrical's full interim increase is approved, the July 1 bill for 1,000 kilowatt hours would be $145.60, or $15.24 higher than it was on June 1.
Yukon Energy, the publicly owned utility, is responsible for generating most of the Yukon's power at the Whitehorse, Aishihik and Mayo hydro facilities.
Yukon Electrical, the privately owned utility, is mostly responsible for distributing the electricity.
Yukon Energy applied last year for a rate boost of 13 per cent over two years, retroactive to Jan. 1, 2012.
While the application was under consideration, the utilities board approved a interim increase of 6.4 per cent beginning July 1, 2012, and a further interim hike of 3.4 per cent beginning Jan. 1 this year.
Prior to July 1, 2012, the monthly residential and commercial bill for the first 1,000 kwh was $118.26.
The utilities board has ruled Yukon Energy is entitled to an increase of 11.01 per cent for 2012 and 2013, and not the 13 per cent as requested.
The addition to the July 1 bill will include a 12-month increase of 3.6 per cent to allow Yukon Energy to make up revenue it was entitled to under the new rate, but did not collect, particularly in the first six months of 2012.
Yukon Energy has already added the 3.6 per cent to its calculations indicating 1,000 kwh will cost $136.76 beginning this Monday.
The 3.6 per cent – or $4.90 a month – will be removed July 1, 2014.
Yukon Electrical applied last month for an increase of 12.1 per cent over the next three years: 6.5 per cent for 2013, back to Jan. 1; 3.2 per cent for 2014; and 2.2 per cent for 2015.
The utilities board has scheduled a public hearing for early November.
The board also invited comments regarding Yukon Electrical's request for the interim increase of 6.5 per cent beginning Monday.
The deadline for comments was last Thursday, and Yukon Electrical was given one day to reply to the comments.
Energy, Mines and Resources Minister Brad Cathers has not said whether the monthly subsidy will be extended beyond next March 31, though he has noted it was never meant to be permanent.
The subsidy was implemented by the New Democrats in 1998 as a means of protecting ratepayers from a huge increase in monthly bills to make up for lost revenue following that year's closure of the Faro lead-zinc mine, the largest costumer at the time.
Some argue the subsidy should continue.
Some say it should be based on income or a needs assessment.
And some say it should be eliminated, as it's counterproductive to promoting conservation.
Comments (4)
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Yukon Energy on Jun 27, 2013 at 3:15 am
B&R, Yukon Energy doesn't have a say in what type of heating system goes into new or existing buildings. That is entirely up to the contractor or home builder.
As for the Gladstone Diversion Concept, that project will not go ahead unless there is some support from the local First Nations. As for the Atlin River, that area has been protected by the B.C. government and so there is no possibility of us moving forward with a project in that area. However you are correct that we continue to look for new sources of electricity so that we can meet the growing demand for power.
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Time to trim the fat!! on Jun 27, 2013 at 2:07 am
Increases, increases, everywhere you turn there are increases.
Crown corporations like Yukon Energy & Yukon Electrical need more accountability. I readily admit I am on the outside looking in, with that said, both of these organizations look pretty darn flush to me. All levels of government have been dealing with less for a number of years now. This does not seem to affect these organizations, it seems like business as usual, let's get the ordinary users to pay more? Time to look at trimming some of the fat here and streamlining operations I would say.
No accountability here, does anyone know if these organizations have a hiring policy that is representative of the Yukon population?
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B&R on Jun 25, 2013 at 10:36 pm
Some questions to ponder:
Why is YEC allowing for all the building projects to use electric heat when they know they don't have the capacity?
Will having all the extra demand give them leverage with regulatory bodies to go ahead with projects such as the Gladstone diversion or the Atlin river control structure?
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Holy Jumpin' on Jun 25, 2013 at 8:16 am
Wow, this latest increase in a long string of electricity hikes is ridiculous. For example my home has only two people living in a small oil heated place with high efficiency appliances, power saver bulbs, and timer on the car plug in during the winter, and we use roughly 700 to 1100 KWH depending on the month. There's nothing left to get more power efficient on. Wasting electricity is a luxury we haven't indulged in for years. With that in mind I can't imagine how much electricity people with a family need. And the poor people who use electric heat... I know horror stories of electric heating bills getting to $6-$800 in winter.(Between power outages that is.) Time to break out the Kraft Dinner so Yukon Energy fat cat investors can feast on caviar I guess.