Monday afternoon's announcement that Premier Dennis Fentie is taking the reins of the Yukon Energy Corp. (YEC) is a charade, say opposition parties. Both the NDP and the Liberals warn the utility's future as a publicly owned entity remains in jeopardy.

"That press release is a one-page, giant piece of spin," Liberal Leader Arthur Mitchell said today.

"I don't think there's been any change to what the agenda is, and Yukoners should be very concerned."

The agenda, according to opposition parties and former YEC chair Willard Phelps, is to privatize the YEC and turn control of the public utility to Calgary-based energy giant ATCO.

Last month, Phelps resigned from the YEC board to protest Fentie's secret negotiations to merge the YEC with ATCO's Yukon subsidiary, Yukon Electrical Co. Ltd. (YECL).

Phelps later produced a "joint position paper" indicating the government was ready to relinquish control of YEC to ATCO - including management of personnel - and considered increasing ATCO's share in the merger via public and other private revenue streams.

"I think it's atrocious that ATCO would gain so much of our assets when government or industry paid for it," said Phelps of the proposed deal.

According to its terms, ATCO could own 50 per cent of a new $40-million asset by splitting a $10-million base rate with government and letting a third party pick up the difference.

Steve Cardiff of the NDP called news that Fentie is pushing aside Jim Kenyon, former minister responsible for the YEC, as certifying what's already happening behind the scenes.

"Fentie's formalizing his control over the situation that he's had for some time. It's the way the premier operates," said Cardiff.

"What we need to ensure is the corporation continues to function at arm's-length, free of political inference ... and in the public's interest."

When the controversy first surfaced after Phelps resigned June 8, the NDP called for Fentie's cabinet to break ranks with the premier and today, the Liberal leader joined the call.

"Some of those MLAs should start to think about who their allegiances are to. Is it to the people of the Yukon or to Dennis Fentie?" asked Mitchell.

The premier did not make himself available for comment this morning.

According to Monday's press release, changing structures of the YEC board and its parent board at the Yukon Development Corp. form part of the plan.

"Currently, the same board members of YDC serve as board members for YEC," reads the release. "To ensure accountability and transparency of both corporations, changes will be made to the governance structures to differentiate the membership."

The premier also pledged the YEC would remain in the public trust, despite documents that suggest the Yukon government was heading in an opposite direction only weeks earlier.

"To clarify the public record, our government reaffirms there will be no sale or privatization of any of the assets of the publicly-owned YEC, and there will be no loss of jobs," Fentie says in the release. "We will continue to explore reliable, efficient, and affordable energy

options for Yukoners."

Whether Fentie's promise to retain control of YEC and its assets or rejigging the YEC and YDC boards will boost public confidence remains to be seen.

In the wake of Phelps' departure, Fentie promoted Pat Irvin, his friend and Yukon Party campaign organizer, to the helms of the YEC and YDC.

"When Mr. Irvin speaks, it's like Mr. Fentie speaking," said Mitchell of the new chair for the YEC and YDC.

"It's still going to be a privatization of Yukon Energy's infrastructure over time, and who's to say down the road there won't be swaps of assets. These promises (that the electrical corporation won't be privatized) aren't even worth the paper they're printed on," said the Liberal leader.

As for the $160-million Mayo B extension and hydro expansion at Aishihik loom, Cardiff wants to know who will supplement the federal government's $71-million contribution.

"The premier has yet to clarify to the public plans for financing the remaining $89 million," said Cardiff.

"It's a public project, and the public needs to know where that money is coming from."

While linking the territory's north and south hydro grids would have been an opportunity for ATCO to buy into a YEC/YECL merger, according to the "joint discussion paper", Fentie told the Star during a previous interview that ATCO was not considered a potential Mayo B investor.

Phelps could not be reached for comment on Fentie's latest move.