Yukon Energy Seeks Approval for Major Investments and Rate Increases to Strengthen Energy Security in the Yukon

Whitehorse, Yukon – Yukon Energy Corporation has submitted its 2025–2027 General Rate Application (GRA) to the Yukon Utilities Board (YUB), seeking approval for more than $350 million in system-wide investments over the next three years.  Key initiatives include completing the Whitehorse grid-scale battery energy storage system, renewing water licences for the Whitehorse, Mayo and Aishihik hydro facilities, rebuilding the Mayo spillway, replacing aging diesel units in Faro and Whitehorse, and upgrading Dawson City’s local power system with new poles and wires, and new backup diesel capacity.  The application outlines over 150 essential projects to maintain current renewable electricity generation, enhance reliability during peak winter demand and provide emergency backup. These investments support Yukon Energy’s five-year strategic plan to make the electricity system more robust and reliable, modernize the grid and expand renewable integration.  If approved, residents who use an average of 1,000 kWh of electricity each month could see their monthly bill increase by about $25 to $30 each year in 2025, 2026 and 2027. The YUB will determine the exact timing and amount of bill increases.  The Mayo spillway reconstruction, slope stabilization near Mayo A, and replacement of the aging surge chamber—totalling over $180 million—represent a large portion of the application and are significant by Yukon standards. Yukon Energy is actively pursuing funding partnerships to help mitigate rate impacts.  Government contributions to electrical infrastructure help offset rate pressures. For example, the $35 million battery energy storage system project received $16.5 million from the Investing in Canada Infrastructure Program, reducing monthly bills by approximately $3.  The Yukon’s challenges mirror a broader national trend of utilities investing heavily to renew aging infrastructure and support growth in energy demand. Even with the proposed increases spread over three years, the Yukon’s electricity rates will remain the lowest in Northern Canada.  The GRA is subject to public review, and final approval is not expected until early 2026. More details are available here or yukonutilitiesboard.yk.ca. Quote:  “Over the past 25 years, on average, more than 90% of our electricity has come from renewable sources, powering essential services like hospitals and schools. To ensure continued reliability—especially through the Yukon’s long winters—we must invest in responsive, resilient infrastructure. These upgrades are crucial for long-term energy security.”  — Chris Milner, President and CEO, Yukon Energy Corporation  About Yukon Energy:  Founded in 1987, Yukon Energy is a publicly owned utility and the primary generator and transmitter of electricity across Yukon communities.  For media inquiries, please contact:  communications@yec.yk.ca