Premier Dennis Fentie has announced a new $3-million subsidy for electrical consumers, but nothing for business nor government.

The announcement, made Wednesday afternoon, comes just weeks before the end of the existing subsidy under the current Rate Stabilization Fund (RSF) implemented back in the late 1990s.

Under Fentie's Interim Electrical Rebate program, residential consumers will receive a maximum rebate of $26.62 per month for the first 1,000 kilowatt hours of electricity used.

The subsidy is a means of preventing rate shock, as the previous subsidy under the RSF was set to expire July 1, the premier told the Star this morning.

He explained it is being provided to give the Yukon Utilities Board time to complete its review on the actual cost of providing electrical service to Yukoners, up until July 1, 2010.

The premier said he would not speculate whether the rebate program would continue beyond July 1, 2010 if the board has not completed its work.

The new program actually increases the existing level of subsidy under the RSF, but is not as large as it once was under the RSF when consumers would receive $36.40 per month, based on 1,000 kilowatts of use.

The Yukon government cut the RSF to $18.70 a month on July 1, 2007, with plans to remove it altogether last July 1, though the government extended it for another year, and has now bumped it back up.

"We have increased it on the basis of providing residents with what we feel is a fair rebate or return for now to, as I said, mitigate any possible rate shock over the cessation of the RSF in total," the premier said this morning.

"We have to go through what I would consider a lengthy process with the Yukon Utilities Board and its cost of service analysis in rates into the future."

Fentie said while the cost-of-service work is being completed, the government will continue to promote conservation measures to reduce cost, and expand efforts to increase the capacity to produce green energy.

The publicly-owned Yukon Energy Corp. and privately-owned Yukon Electrical Co. Ltd. have been directed by the Yukon Utilities Board to conduct a cost-of-service review.

The review is intended to nail down exactly how much it costs to provide service, in order to provide the board with a true assessment of what the rates should be.

The two utilities, which are sometime at odds with each other, indicated to the board last month they are willing to work together on the exercise, which has yet to get underway.

Yukon Energy indicated it would wait until the board rules on the corporation rate application before it begins the cost analysis.

The RSF was established in the late 1990s to protect ratepayers from the impact of the Faro mine closing, and the loss of revenue from what was by far the largest consumer on the grid. The mine closed permanently in early 1998.

Fentie declined this morning to enter into any substantive discussion regarding resignations from half of the board members who serve on the boards for Yukon Development Corp. and its subsidiary, Yukon Energy.

Among the four who resigned was the chair, Willard Phelps. Phelps said the departures were prompted by too much political interference into matters that should be managed at arm's-length from government.

Fentie would only say he's already commented with his brief statement Monday thanking the former board members for their service.

It is the job of government, the premier quickly added, to provide direction to its Crown corporations.

He said he remains confident in the remaining board members.