Projects

Mayo B Project

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Yukon Energy is planning for the future by ensuring there is a secure and continuous supply of clean, affordable energy. We are committed to meeting the demand for electricity with clean, preferably renewable energy that complements our existing hydro system. We are looking at all possible sources of clean energy, so as to keep to a minimum the need for diesel generated electricity. As such, we are expanding the existing Mayo hydro plant, a project called Mayo B.

The Mayo B initiative involves building a new powerhouse about three kilometres downstream from the existing powerhouse. This will more than double the amount of energy that can be generated from the Mayo River (from five megawatts to approximately 15 megawatts). No changes are required at Wareham Lake or to the Wareham dam. We plan is to maintain the existing powerhouse for use as required in the future.

Need for Project
As the Yukon’s largest provider of renewable energy, Yukon Energy’s mandate is to ensure a secure supply of clean, and preferably renewable energy for the territory. This challenge is made more difficult by the fact that the Yukon is not connected to other transmission grids like British Columbia, Alberta or Alaska, so we must find ways to be self-sufficient in our ability to supply electricity to customers.

Demand for reliable, renewable energy is growing in the residential and commercial sectors, as well as in the industrial sector (e.g. mining). Increasing energy demand is clearly recognized in Yukon Energy’s 20-Year Resource Plan, which identifies several supply scenarios and the priority potential projects associated with them. Mayo B is one of those projects and will come into service at just the time new hydro is needed to reduce the need for costly diesel. Mayo B in effect provides a bridge to the next stage of power resource planning.

The requirement to proceed with Mayo B is not directly tied to the timing of any specific industrial load (such as the Minto mine in the case of the Carmacks-Stewart Transmission Project Stage 1) but rather is defined by the opportunity available to secure low risk and cost effective assets for the benefit of electrical customers in the Yukon. Mayo B will provide both near term economic benefits ( i.e. employment and economic spin-offs during construction) and longer term benefits, though the augmenting of cost-effective renewable hydro generation to all customers on the Yukon grid.

Anticipated Timeline
Two summer construction seasons are needed to complete Mayo B by December 31, 2011, and certainly no later than March 31, 2012 which is the completion date requirement under a federal contributions agreement.

We started land-based construction in June 2010. Water-related construction activities will not start until the summer of 2011.

Funding for Project
Funding for the Mayo B project is being made affordable by contributions from both the Federal government and the Yukon Development Corporation. The breakdown is as follows:
Federal grant: $53.35 million (part of the $71 million it has committed for both Mayo B and the Carmacks-Stewart Transmission Project Stage 2)
Yukon Development Corporation/First Nation of Na-Cho Nyak Dun contribution: $30.15 million
Yukon Energy (electrical customers) $36.50 million

Contribution from customers will be spread out over the life of the project (approximately 50+ years).

Without Mayo B, electrical customers will be faced with paying for the necessary amount of diesel generated. Annual diesel costs would range from $3.8 million in Year 1 to $5.7 million by Year 5, fall to $1.6 million in Year 8 (2019) when no industrial loads are assumed to be connected, with higher costs in each subsequent year (e.g. $2.6 million in Year 10 and $9.3 million in Year 20).

Regulatory Reviews
This project has been reviewed by our regulator, the Yukon Utilities Board (YUB), and by the Yukon Environmental and Socio-Economic Assessment Board (YESAB). Both bodies gave their stamp of approval for the project. Both applications can be found in the box at the right of this page (see note at the bottom of this page regarding the YESAB application). Before we begin the water-based work we will require a new or revised water licence from the Yukon Water Board.

For the last two years we have been consulting with local governments, stakeholders and the public on Mayo B. These consultations will continue through until the completion of the project. In April 2010 we signed a major Project Agreement with the First Nation of Na-Cho Nyak Dun. We are working with the First Nation to ensure jobs and economic opportunities for its citizens. We expect Mayo B to create 120 jobs over two years, many of which we anticipate will be filled by Yukoners.

For more information about this project, please see the newsletters found at the right of this page. If you have comments or questions, email business@yec.yk.ca or communications@yukonenergy.ca or call (867) 393-5331 or 5333.

Note regarding YESAB filing: because of their large file size, the Appendices of our YESAB filing have not been posted on this web site. Should you require the full application, including all Appendices, please contact us and we will provide you with a disc.