About Us

Reliability
Feb 19, 2010  Comment

Tending to Our Wind Turbines

As you may know, Yukon Energy has two experimental wind turbines on Haeckel Hill near Whitehorse. Together, they can power up to 150 homes. This week an article in the Yukon News stated that our wind turbines have fallen into disrepair after years of neglect. That is a false statement and we feel it's important that we correct the record.  Here are a few pieces of information we would like you to know: If you look up at Haeckel Hill and see that the turbine blades aren't turning, that doesn't necessarily mean the turbines are broken. They will not generate power if there’s not enough wind, if there’s too much wind, or if there is rime ice on the blades which prevents them from turning. Rime icing is a huge challenge for us. We have tried a number of things to address this issue including applying special paint to the blades to try to repel the ice, and heating the blades. Nothing has worked very well.   At times when the turbines require repair, it’s not always possible to do so right away. In the winter especially, it is often unsafe for staff to do repairs and we must wait until weather conditions improve before we will allow employees to do the work. Safety is always the first priority. Many of the parts on a wind turbine are not simple, off the shelf components; they need to be ordered from elsewhere – often either the U.S. or Europe – and they can take several weeks to arrive. There is not a crane in the Yukon big enough to use for repairs on the wind turbines. A few years ago we required a crane and had to bring one up from Southern Canada at a cost of $180-thousand dollars.   In terms of our maintenance schedule, we do regular maintenance on our wind turbines just as we do on all our other assets. We are very conscious of the fact that Yukon Energy's assets belong to all Yukoners and that we have a duty to maintain them properly.   In spite of the challenges we face with wind, we are still looking at it as one part of an overall clean, renewable energy regime. We are studying Ferry Hill near Stewart Crossing as a possible site for a wind farm and we are also looking at the possibility of a 20 megawatt wind farm at Mt. Sumanik near Whitehorse. But under the best conditions, wind only operates 30 percent of the time. So that means for every megawatt of wind power we build, we need to build a megawatt of something else, since it is needed for the 70 percent of the time that the wind turbines aren't producing power.

General
Mar 12, 2010  Comment

We Have Things Well in Hand

We thought you might be interested in learning more about what Yukon Energy is doing to meet the electrical needs of Yukoners now and into the future. Our latest strategic plan lays out our priorities for the next two years. You can read the full plan here. In a nutshell, here are the four main areas we are focussing on: Reliable Power The goal is to reduce the number of controllable outages and make our system more efficient. Two thirds of the core capital budget is being dedicated to reliability improvements for the next five years. Work is under way to improve the performance of our hydro generating equipment and transmission lines. The Whitehorse-Aishihik-Faro transmission system will be joined to the Mayo-Dawson grid so Yukon Energy’s hydro assets can be managed as one unit.     Yukon Energy is also working with Yukon Electrical to find ways to improve service to distribution customers and to localize outages.   Meet future demand with clean power Yukon Energy is planning for the future. Our challenge is to meet an increasing demand for electricity with clean, renewable energy that works well with our existing hydro infrastructure. We are looking at all possible sources of clean energy, including wind, geo-thermal and additional hydro, to keep to a minimum the need to burn diesel for power generation.   Establish a buffer of surplus renewable energy To ensure Yukon has a continuous supply of clean energy, resource planning must include a buffer of energy projects that are 'shelf ready' but only built if required.    Work with customers to better meet future energy needs Yukon Energy cannot fulfill our mandate in isolation. We must work to engage Yukoners so we can collectively create a clean energy future. Our goals are to better define commercial client needs and continue to explore opportunities to work with First Nations and the private section on energy projects.   We are also working with Yukon Electrical Company Ltd. and the Yukon government to establish independent power producer and net metering policies and develop a conservation/Demand Side Management program.

Regulatory
Mar 19, 2010  Comment

Getting All Our Ducks in a Row

Yukon Energy would like to respond to concerns by the NDP and the Yukon Conservation Society about recent construction contract announcements regarding the Mayo B and Carmacks-Stewart Stage 2 projects. Their fear is that we are moving forward with construction before we have received all the necessary permits and permissions. That is not the case. In terms of the Carmacks-Stewart line, Stage 2 is fully permitted. It has gone through an extensive environmental (YESAB) screening and has also been reviewed by the Yukon Utilities Board (YUB). We have all permits we need to proceed with construction. In fact line clearing on this project began this past November.   On Mayo B, Yukon Energy has consistently informed both YESAB and the YUB that, prior to securing the necessary documents and permits, we would be moving to award a construction contract as well as to purchase key long term equipment.  Yukon Energy has also consistently told both YESAB and the YUB that we cannot start construction, and obviously will not allow the contractor to start construction on Mayo B before all necessary permits are in place.    The Yukon Environmental and Socio-Economic Assessment Board has already issued its draft screening report on the Mayo B project. The report confirms that YESAB is prepared to recommend this project move ahead as long as certain conditions are met. We see no reason why we can't meet those conditions, which are fairly standard requirements for utilities involved in hydro projects.     While we wait for YESAB’s final recommendations and for the conclusion of the Yukon Utilities Board process, there are things we can do to ensure we have everything in order and are ready to go as soon as the permits and permissions are issued. The contract we recently signed with Kiewit allows that company to work with us to prepare for construction, thus ensuring that the Mayo plant can be in operation by our March 31, 2012 federal funding deadline. That work includes things such as planning and engineering, going through the process needed for hiring subcontractors, and setting up the work camp near the Mayo B construction site.   From Yukon Energy’s point of view, it would be irresponsible for us to sit and do nothing until the YUB and the YESAB processes are complete, since that would cause us to miss our project completion deadline of March 31, 2012. By missing the deadline we would not receive the $71 million that has been committed by the federal government. Without Mayo B we would be forced to use more diesel, resulting in higher electricity bills for Yukoners.   We are trying to do right by Yukoners. We think Mayo B is a good project for the territory and we are doing everything we can to ensure it proceeds. 

Regulatory
Mar 25, 2010  Comment

Unravelling the Mysteries of the Utilities Board Process

Yukon Energy and the Yukon Electrical Company Limited have filed a joint Phase II Application to our regulator, the Yukon Utilities Board. Before your eyes glaze over, let us explain what a Phase II Application is and why this might be important to you. You might remember that in 2008 and 2009 each utility went to the Utilities Board separately for what are known as revenue requirement hearings. This process allows the YUB to determine how much money each company needs to operate and what the overall amount is that can be charged to customers for electricity. During the Phase II hearings, the Utilities Board uses the information from the Revenue Requirement Hearings to do a couple of things: It recommends how much of that overall amount is to be allocated to each class of customer (resident, small business, government and industry). In other words, the YUB decides who pays for what amount of the pie. You might not know that while business and industry now pay 100 percent of what it costs to provide them with power, residential customers currently only pay about 70 percent of the true cost of their power. They are subsidized by the government, which pays 130 percent of the cost. It recommends how the rates within each class should be designed. For example, the Utilities Board could determine that people who use under a certain amount of electricity per month should get a reduction on their bill while those using a lot of electricity each month should pay a higher rate. That already happens to a certain extent, but Yukon Energy and Yukon Electrical Company Ltd. are asking that there be even more incentives for people to conserve electricity. The Phase II hearing will also deal with proposed changes to the terms under which the utilities provide service to customers. This covers everything from rights of the utility to access land (such as when a linesperson has to go onto private property to access transmission lines) to the rights of a customer to have their meter tested, as well as the level of service fees. If you want to know more, the entire Phase II hearing application can be found on our web site. As always, if you have questions, please send them our way and we will do our best to answer them.        

Media Releases
Mar 12, 2010  Comment

Construction to Start on Stage 2 of Carmacks-Stewart Transmission Line

Construction work is about to start on Stage 2 of Yukon Energy’s Carmacks-Stewart transmission line. The line materials have been ordered and Valard Construction will start assembling and installing the poles for the transmission line tomorrow. The stringing of the line will begin in the summer, with completion expected by this fall. Valard, in partnership with the Northern Tutchone First Nations, is the same company that built the transmission line for Stage 1, which runs from Carmacks to Pelly Crossing with a spur into the Minto mine site. Stage 2, from Pelly Crossing to Stewart Crossing, will connect Yukon Energy’s two major grids and allow the Corporation to operate the assets as one interconnected system. Valard has again partnered with the Northern Tutchone First Nations to complete Stage 2. The contract is worth $11-million. “We were very pleased with the work that Valard and the Northern Tutchone First Nations did on Stage 1 and we’re happy to have them with us again for the second part of the project,” Yukon Energy president David Morrison said. “Once Stage 2 is in service late this year or early next, customers throughout the integrated Yukon grid can be served with clean, renewable power.” The project is within Yukon Energy’s expected time frame and budget. The flagging of the right of way area to be cleared, done by Challenger Geomatics, took place in November and December, 2009. That work is now complete, and Challenger has also finished marking where the transmission poles will go. The value of the contract with Challenger is approximately $472-thousand. The clearing was finished in early February. The $1.6 million clearing contract was awarded to Pelly Construction Ltd, the managing partner on behalf of the Northern Tuchone Joint Venture Partnership comprised of Pelly Construction Ltd., Na-Cho Nyak Dun Development Corporation, Selkirk Development Corporation, and Carmacks Development Corporation. All subcontracted companies were Yukon-based, directly employing between 12 and 15 Yukoners to complete the right-of-way clearing work. “With the majority of resources for clearing, including labour, equipment and materials being sourced in Yukon, we are pleased to report that 99 percent of the revenues associated with this project will stay in the territory,” Pelly Construction Vice President Jess Jewell said. “This includes wages, food, fuel, equipment and other services. We are especially appreciative of everyone’s efforts and thank the various First Nation communities for their support while working in their traditional territories.” “As a testament to local skills and job safety, the clearing work has been completed under often challenging terrain and inclement weather conditions without a single medical aid or loss time incident,” Jewell added. Economic spin-offs from the surveying work include the salaries of two Yukoners, the rental for several weeks of a house from the Selkirk Development Corporation, groceries, and gas. The Carmacks-Stewart Transmission Project has been through an extensive executive committee level screening by the Yukon Environmental and Socio-Economic Assessment Board and has been reviewed by the Yukon Utilities Board. It is being paid for by contributions from the federal government's Green Infrastructure Fund, and from the Yukon government and Yukon Development Corporation. For safety reasons, Yukoners are asked to stay away from the active building zone while the line construction is taking place. If they absolutely must enter the worksite area, they must wear safety clothing and to prearrange access with the on-site project manager. Contact information for the project manager will be posted at worksite access points along the Klondike Highway, or can be obtained by contacting Yukon Energy. Contact: Janet Patterson Supervisor, Communications Yukon Energy Corporation (867) 393-5333 janet.patterson@yec.yk.ca

Media Releases
Mar 12, 2010  Comment

Yukon Energy; Kiewit Sign Construction Contract for Mayo B

Yukon Energy has awarded the construction contract for the Mayo B project. The contract, worth $85.4 million, was given to Peter Kiewit Sons Co. this morning. “Through our normal competitive bid process we initially hired Kiewit almost a year ago to be involved in the planning and design of Mayo B,” Yukon Energy president David Morrison said. “We felt that involving a construction company early in the process would help minimize risks associated with cost and schedule.” “Since then, Kiewit’s input and expertise has proven to be invaluable to the advancement of the Mayo B project, so we are happy today to finalize a contract and to continue working with them during construction,” Morrison added. Over the past several months, Kiewit worked with Yukon Energy’s engineers to finalize the most cost-effective and efficient design. It also helped with the tender process for the turbine/generator package and worked with Yukon Energy to determine firm costs for Mayo B. “We are extremely pleased to be working with the Yukon Energy on the Mayo B hydroelectric project,” Peter Kiewit Sons Co. Senior Vice-President Greg Dixon said. “Yukon Energy has developed a unique alliance contracting model that has created a strong working partnership between Kiewit, the local community of Mayo, the First Nation of Na-cho Nyak Dun (NND) and the energy company.” “The traditional bid-build contracting model has been challenging on complex hydro projects and Yukon Energy should be commended for its strong leadership in promoting this new and exciting approach,” Dixon said. “As the project proceeds, the hydroelectric industry will be watching with keen interest as this innovative contracting model may shape the future of hydro projects across Canada.” Land-based construction of Mayo B is expected to start this summer, subject to a review by the Yukon Utilities Board and the Yukon Environmental and Socio-economic Assessment Board. The water-based work is planned for the summer of 2011. Mayo B is expected to be completed no later than March 2012. Yukon Energy and Kiewit will be working with the NND and the community of Mayo to plan for local employment and business opportunities during the construction. Yukon Energy expects to sign a Project Benefits Agreement with the First Nation very soon. Mayo B is being made affordable due to a $ 53.35 million contribution from the Federal government’s Green Infrastructure Fund as well as $30.15 million from the Yukon Development Corporation and the Yukon government. The other $36.5 million will be paid for by electrical customers. However because the cost will be spread over the lifetime of the project (50+ years) there will not be a rate increase as a result of the Mayo B project. Contact: Janet Patterson Supervisor, Communications Yukon Energy Corporation (867) 393-5333 janet.patterson@yec.yk.ca