Yukon Utilities Board Approves Interim Rate Increase

Media Releases

Dec 20, 2004  Comment

(Whitehorse) – The Yukon Utilities Board has approved Yukon Energy’s request for an interim rate increase for secondary sales customers. Currently, the approximately 20 to 25 secondary sales customers pay 3.3 cents per kilowatt hour to heat their facilities using excess hydro electricity from Yukon Energy. Under the new interim rate, they’ll pay 5.5 cents per kilowatt hour. The interim rates take effect on January 1, 2005 and could be fully refunded with interest depending on what the Utilities Board sets as permanent rates following a public review in 2005 of Yukon Energy’s revenue requirements.

“Currently we are charging an unrealistic market value for our secondary sales,” Yukon Energy President David Morrison said. “The customers taking advantage of this option to heat their buildings are getting power for about 42 per cent of what it would cost them to heat with oil. The Yukon Utilities Board has allowed us to increase that, on an interim basis, to 70 per cent. That is still a good deal for the customers.”

The 5.5 cents per kilowatt hour rate for secondary power will apply until April 1, 2005 when the rate is expected to be adjusted to re-establish the 70 per cent ratio between the cost of secondary power and the cost of oil at that time.

The Utilities Board has also approved, on an interim basis and effective January 1, 2005, Yukon Energy’s request to charge the normal general service government rate for power to the Faro mine interim receiver. This will bring the Faro mine site rate in line with that charged for site maintenance at other government-maintained properties. Switching to a government rate means the Federal government will pay about 19 per cent more for power at the Faro mine site.

Yukon Energy filed an application with the Utilities Board on December 13 for a review of its required revenues. The energy company’s application does not include a request for a general rate increase.  Although Yukon Energy’s costs have risen since the last general review of its operations in 1996/97, the corporation is asking that it be allowed to use various deferred accounts that have built up, to cover those higher costs. Without this application, including the various measures proposed, Yukon Energy will have a revenue short fall in 2005 of approximately $1.1 million.

Yukon Energy will hold a workshop on January 13, 2005 to provide intervenors and other interested members of the public with details of its application and the review process. On January 14, the Utilities Board will hold a pre-conference hearing into the application. The hearing will outline the regulatory process and the scheduling of events. It will also identify intervenors and major issues. 

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

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