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.