Striking a Power Deal with Alexco

You might have heard on the news that we have asked the Yukon Utilities Board to approve a Power Purchase Agreement we have reached with Alexco Resources. That's the company that plans to begin mining and milling operations at the old United Keno Hill Mine at Keno next month.

You can find the complete application form, including the Power Purchase Agreement, on our web site here.

In summary, under the terms of the PPA and pending Utilities Board approval, Alexco will be responsible for the full costs of:

• Construction of a 1.65 kilometre spur line from Yukon Energy's Mayo-Keno transmission line to the mill site (approximate cost $330-thousand)
• negotiating and concluding the Power Purchase Agreement, including the regulatory costs (approximately $100-thousand)
• decommissioning Yukon Energy's spur line once the mill shuts down.

In addition, Alexco will pay a fixed charge of almost $7,300 per month for as long as it buys power from Yukon Energy as an industrial customer. The money will help pay the cost of Yukon Energy's existing Mayo-Keno transmission line.

Alexco will pay the Industrial power rate set by the Yukon Utilities Board.  The rate is approximately 10.5 cents per kilowatt hour, depending on Alexco’s peak demand.