News, Energy Supply, Regulatory
Apr 30, 2012
After 13 Years, It’s Time for a Rate Increase
Yukon Energy Corporation has filed an application with the Yukon Utilities Board for our first retail rate increase since 1999.
We have asked for a 6.4 percent increase for all customer classes (residential, commercial, industrial and government) in 2012 and an additional 6.5 percent raise in 2013. The increases would impact both Yukon Energy and Yukon Electrical customers.
Obviously no one likes a rate increase, and over the last 13 years we’ve done everything possible to keep electricity costs low. In fact we were even able to secure a 2.47 percent rate decrease for our customers when the Minto mine came on-line. However seeking a rate increase now is the responsible thing to do if we are to continue providing Yukoners with sustainable energy now and into the future.
There are several reasons in particular that a rate increase is necessary at this time:
Increased energy consumption in all sectors has strained Yukon Energy’s power grid, and has depleted the corporation’s surplus hydro. While Yukon Energy’s new hydro assets (Mayo B and the Aishihik third turbine) have helped address this problem, expensive diesel generation is still needed to supply an increasing share of the new demand.
The cost of keeping aging infrastructure efficient, up-to-date and safe for Yukoners has increased faster than electricity rates.
Inflation: thirteen years is a long time to go without a rate increase. The last time we raised rates, Gretzky was playing for the Rangers and gas was 60 cents a litre! Meanwhile, salaries have gone up and the cost of our materials keeps climbing. The cost of living in Yukon has gone up more than 20 percent since the late 1990s.
Funding tomorrow’s energy: finding sufficient clean, affordable and reliable energy requires years of public and stakeholder consultation, research, engineering and project approval. All this work comes with a price tag.
You can read more about the need for an increase and what we've done over the last 13 years to keep costs low, by reading this document.
Note that even with higher rates there are steps most of you can take to keep your bills affordable. We'll be talking more on this blog about the tools and information available to give you more control over your electricity bills.
