Yukon Energy-Minto Reach Amended Power Purchase Agreement

Officials of Yukon Development Corporation and the Yukon Energy Corporation have reached a revised Power Purchase Agreement (PPA) with the Minto mine, with support from the Yukon government.

Certain provisions within the original agreement, reached between Yukon Energy and Minto Exploration in Feburary, were rejected recently by the Yukon Utilities Board. The board concluded that the risks related to the financing of Minto Exploration’s contribution to the Carmacks-Stewart Transmission Line should not be borne by ratepayers.

A revised agreement was signed by Yukon Energy and Minto Exploration this morning. The amended deal reflects changes required by the Utilities Board and provides Minto with the certainty it needs. 

The main elements of the agreement include the following:

• The Yukon government has committed to take the necessary steps to fix the firm industrial rate agreed to in the original Power Purchase Agreement, as accepted by the Yukon Utilities Board on an interim basis, for four years with an escalator clause after the first year.

• The Yukon Development Corporation will assume the financing risks related to Minto Exploration’s capital cost contributions for both the main line and the spur, and also accept the risk that the amount of Minto’s contribution for the main line may increase beyond the present high cost estimates.

• The Take or Pay commitment has been reduced to reflect the length of time the firm industrial rate is fixed (four years). 
  
  
• Yukon Energy still intends to purchase the diesel units and, as suggested by the Utilities Board, will provide justification for that purchase in its next General Rate Application.  

This afternoon, this revised agreement was submitted to the Yukon Utilities Board for review and consideration in the current Part 3 hearing on the Carmacks-Stewart Transmission Project. 

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Contact:
Janet Patterson
Yukon Energy/Yukon Development Corp.
(867) 393-5333
janet.patterson@yec.yk.ca