Another increase in electrical rates is on the horizon, in addition to what has already been approved for Yukon Energy.

Yukon Electrical Co. Ltd. submitted is application Monday for an 11.7-per-cent hike over the next 2 1/2 years, including 6.1 per cent for this year, retroactive to last Jan. 1.

The application requests a further 3.4-per-cent increase beginning next Jan. 1, and another 2.2 per cent on Jan. 1, 2015.

"So it is just under four per cent a year over the next four years if you average it out,” Dwight Redden, Yukon Electrical's general manager, explained in an interview this morning.

"Our capital program over the next 2 1/2 years is $60 million in projects. There is a lot of upgrades and a lot of rebuilding.”

Redden pointed out the application to the Yukon Utilities Board seeks approval for the $3.9 million in funding for the installation of automatic meters, a proposal which was rejected by the board in the company's 2008-2009 rate application.

It's also revisiting the request for $3 million for a back-up generator to cover its Carcross-Tagish customers, a proposal which was also rejected by the board the last time around.

Redden said Yukon Electrical feels it's time for both the automatic meters, and the emergency back-up generator.

The Yukon legislature, he pointed out, was presented with a petition last fall calling for a back-up generator.

As well, the company believes there's a good case to be made for the 300 Carcross-Tagish customers who don't currently have a back-up.

Other capital projects include the replacement of diesel units in Old Crow, Watson Lake and Destruction Bay, he said.

Redden said there's approximately $10 million in improvements to its Fish Lake Hydro facility in the next 2 1/2 years.

There has been the cost of meeting mounting demand and growth, such as the $1.9 million Yukon Electrical has spent on the new Whistle Bend subdivision development, he said.

Also attached to Yukon Electrical's application for the board's consideration is a joint proposal by Yukon Electrical and Yukon Energy to implement a demand side management strategy to reduce demand through conservation.

The lengthy proposal includes financial incentives for customers to purchase energy-efficient lighting and timers for vehicle plug-ins.

It proposes to provide money to assist commercial property owners interested in re-doing the lighting in their building, or upgrading their refrigeration systems.

Altogether, the incentive program proposed by the two utilities provides just over $2 million covered by ratepayers over five years, beginning this year.

Redden said Yukon Electrical's forecast calls for revenue of $55 million this year, $58.7 million next year and $61.2 million in 2015.

The forecast includes a rate of return on its investment of 9.2 per cent, made up of the 8.75 per cent recently established in B.C. as an acceptable profit margin for utilities, plus .46 of a per cent to cover the additional risk involved in doing business in the North, he said.

Redden said they've asked the board for approval to begin billing an additional 6.5 per cent for the last five months of this year, to make up the 6.1 per cent for the last six months.

The uncollected amount for the first six months if approved would be attached later, once the board has made its ruling, he said.

Yukon Energy received approval from the utilities board earlier this year for an 11.87 per cent increase over two years, going back to Jan. 1, 2012.

Ratepayers will see an additional bump beginning July 1 to recover money owed from the first six months of last year, and a little from the first six months of this year.

The utilities board allowed Yukon Energy to add an interim increase of 6.4 per cent beginning last July while the application was being considered, and another interim boost of 3.75 per cent beginning in January.