NDP MLA Lane Tredger remains opposed to any further rate increases by ATCO Electric Yukon, and has been backed by a national organization representing Canadian businesses.

ATCO has been making excess profit above the rate structure approved by the Yukon Utilities Board, Tredger noted in an interview Monday.

“Now they are asking for an increase, and that is not fair to Yukon businesses and Yukoners,” they said.

“They will be taking more money out of the pockets of Yukoners and they have been making millions.

“I very much hope the utilities board is going to say no to the request. I really do have high hopes for the utilities board.”

Tredger said the Liberal government has failed to protect Yukon businesses and has failed to protect Yukoners who need the support.

The NDP, they pointed out, has applied to the board for intervenor status in the application process.

The deadline for making submissions on ATCO’s rate proposal for the remainder of 2023 was Aug. 4.

The process for determining 2024 rates will be ongoing until December, including public hearings scheduled for November.

If ATCO plans are approved, rates would first go down 1.6 per cent on Sept. 1, then rise by 6.8 per cent on Jan. 1, for an overall rise of 5.2 per cent from where they are now, according to ATCO’s application.

The proposed increases, however, do not consider the fuel adjustment rider, which makes for an overall rate hike of 3.3 per cent over 2022 rates in September even with the reduction, and a projected 10 per cent total increase in 2024.

Meanwhile, the Canadian Federation of Independent Business has written a letter to board chair Richard Buchan expressing opposition to ATCO’s proposed rate increases.

“On behalf of the Canadian Federation of Independent Business (CFIB) and our over 150 small business members in Yukon, we are writing to urge the Yukon Utilities Board to reject ATCO Electric Yukon’s recent application to raise electricity rates by 5.2 per cent above current levels as of January 1, 2024,” says the letter, dated July 31.

“CFIB’s latest survey data shows only half of small businesses are back to making normal sales while the majority continue to deal with significant pandemic-related debt and stress.

“The average small business owner in Canada is staring down roughly $60,000 in debt, and an alarming 19 per cent of businesses are considering closing their doors.”

The three-page letter says small businesses are currently grappling with many challenges that are impacting their survival.

These challenges include declining revenues, mounting debt, soaring inflation, rising food, rent, and wage costs, the burden of the carbon tax, and higher Canada Pension Plan and Employment Insurance premiums.

“A 5.2 per cent electricity rate increase will come as a yet another blow to Yukon small business owners who are already stretched thin,” says the letter.

“Once rising fuel costs are taken into consideration, this rate increase will be closer to 10 per cent for ratepayers.

“Small businesses simply cannot afford to take on these additional costs at this time.”

The letter says the federation recognizes ATCO must strengthen its infrastructure to better service its customers and comply with federal and territorial reduction targets.

“It is worth noting that ATCO’s regulated return on equity (ROE) averaged 13 per cent between 2018 and 2022 – far exceeding the authorized ROE of nine per cent.

“At the same time, the average power consumption per commercial customer decreased by six per cent.

“For small businesses to be charged higher electricity rates to fund ATCO’s development plans on their already burdened backs seems unreasonable.”

ATCO has maintained the increase is necessary to support infrastructure maintenance and expansion in the face of consistently growing demands for power as the territory’s population steadily rises.

The CFIB writes, “If these rate increases are indeed necessary to modernize the grid and comply with federal and territorial emission reduction targets, CFIB suggests that the board approve a staged increase stretched out over the next few years rather than implementing a significant hike in just one year.”

The CFIB has sent copies of its letter to Premier Ranj Pillai and Energy, Mines and Resources Minister John Streicker.