Yukon Energy Files Alexco Power Purchase Agreement With Utilities Board

Yukon Energy has asked the Yukon Utilities Board to approve a Power Purchase Agreement (PPA) reached between the energy corporation and Alexco Resources. The agreement is for the supply of electricity to the new mine and mill site at Keno. The PPA also covers any other new mine/mill operation that Alexco develops in the Keno area in the future.

Under the terms of the PPA and pending Utilities Board approval, Alexco will be responsible for the full cost of:

• construction of a 1.65 kilometre spur line from Yukon Energy’s Mayo to 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 of 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 purchases power from Yukon Energy as an industrial customer. The money will help pay the costs 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.

Alexco plans to begin mining and milling operations sometime in October. It will require approximately two megawatts of power at any given time.

The full application to the Utilities Board, including the Power Purchase Agreement, can be found here.

Contact:
Janet Patterson
Communications Supervisor
Yukon Energy Corporation
(867) 393-5333 
janet.patterson@yec.yk.ca