Media Releases
Jun 13, 2006
Yukon Energy Outlines Plan for Meeting Future Power Needs
Yukon Energy has filed a 20-year Resource Plan with the Yukon Utilities Board. The plan addresses the Yukon’s major electrical generation and transmission needs from 2006 to 2025.
“This plan will guide us in making sound strategic and long-term decisions regarding our assets and infrastructure,” Yukon Energy President David Morrison said. “It addresses the capacity and energy needs of Yukoners, particularly those supplied on the territory’s Whitehorse Aishihik Faro grid and the Mayo Dawson grid.”
The Resource Plan provides background information on the Yukon’s power systems and gives an overview of what Yukon Energy expects its near-term and longer-term requirements will be, taking into account a number of industrial development scenarios. It also sets out some new capacity planning criteria recently adopted by Yukon Energy to better protect customers from outages.
Four near term projects are proposed in the Resource Plan. These projects include installing a third hydro turbine at Aishihik, building a transmission line from Carmacks to Stewart to connect Yukon Energy’s two power grids, extending the lives of three diesel units at the Whitehorse Rapids Generating Station, and applying for an amendment to the Whitehorse Rapids water license that would allow the energy company to hold back water in Marsh Lake during the fall. That water would then be used to generate added firm power during the coldest months of winter.
The Resource Plan also proposes activities to enable Yukon Energy to start construction on other projects before 2016 if opportunities arise, to meet the needs of potential new industrial customers, including various potential mines and the Alaska Highway pipeline project. The Resource Plan identifies hydro and coal energy supply options that offer substantial opportunities to produce power over the long term at a cost lower than diesel generation.
“No final decision has been made to implement any of these proposed projects,” Morrison said. “We are first seeking input from Yukon Utilities Board and from Yukoners. Prior to the Utilities Board hearing, public meetings will take place to allow individuals and groups to participate in a review of our Resource Plan.”
Locations and times of the public meetings will very shortly be advertised in the local media. The Yukon Utilities Board will determine when it will hold a public hearing regarding the Resource Plan.
-30-
Contact:Janet PattersonCommunications, Yukon Energy Corporation(867) 393-5333janet.patterson@yec.yk.ca
Backgrounder
Yukon Energy has filed a 20-year Resource Plan submission with the Yukon Utilities Board (YUB) that addresses our major electrical generation and transmission needs from 2006 to 2025. The last time we submitted a Resource Plan to the YUB was in 1992.
The Resource Plan provides background information on the Yukon’s power systems and gives an overview of what we expect our near-term and longer-term requirements will be, taking into account a number of industrial development scenarios as well as new capacity criteria recently adopted by Yukon Energy to better protect customers from outages.
No final decision has been made to implement any of the projects proposed in this plan. We are first seeking review by the Yukon Utilities Board, and input from Yukoners through a series of public meetings.
New Capacity Planning CriteriaYukon Energy has adopted new capacity planning criteria to better protect customers from outages. The criteria is based on the approach used by other Canadian utilities today. It requires that we plan our grid systems so that on average we would expect no more than two hours of system outages per year as a result of the amount of generation and related transmission we have installed. It also ensures that even if we lose our system’s single largest winter generating or transmission source, we can continue to provide power to residential and commercial customers.
Near Term RequirementsIn the short term (the next few years) Yukon Energy is proposing four major projects to meet electrical needs on the Whitehorse-Aishihik-Faro grid to 2012. Together, the following four proposed projects will provide over 21 megawatts of firm winter capacity, and be sufficient to meet likely power needs through to 2012;
Aishihik Third TurbineThis is a proposal that was initially reviewed by the Yukon Utilities Board in 1992. A third turbine can be installed at the existing Aishihik generation station at a cost of about $7 million to reduce future costly diesel generation. Yukon Energy received environmental and Water Board approvals for this project under our new Aishihik Water License. If this project proceeds, we expect the turbine to go into production between late 2009 and 2012, depending on electrical needs and what other initiatives are put in place.
Marsh Lake Fall/Winter Storage License RevisionThis proposed project would see an amendment to our Whitehorse Rapids water license by August 2007 that would allow us to hold back up to an additional foot of water in Marsh Lake during the fall (from August 15 to the end of September) in non-flood years. That water would then be used to increase the Whitehorse Rapids hydro facility winter power by 1.6 megawatts. At a capital cost not exceeding $1 million, this project would have no effect on summertime water levels during non-drought years. During flood years, there would also be no change to operations in August and September until after the high water levels have subsided. During drought years, we would alleviate summer drought conditions to ensure the lake reached its regulated full supply capacity level each year.
Carmacks-Stewart Transmission ProjectThis project would see a transmission line running from Carmacks to Stewart Crossing, connecting Yukon Energy’s two power grids. The project will encourage economic development along the corridor and enhance overall system reliability and flexibility. It will enable the Minto mine, the proposed Carmacks Copper mine and the community of Pelly Crossing to have access to hydro power and not need to rely on local diesel generation. The line is forecast to provide the Whitehorse-Aishihik-Faro grid with an additional 5.6 megawatts of firm winter capacity in 2012 at a cost in 2005 dollars of $31.2 million. If the line is built, we are currently planning for it to be in service by mid to late 2008. This project will only go ahead after meaningful consultation occurs with First Nations, review by the Yukon Utilities Board is completed, and all environmental permits are obtained. As well, this project will only proceed if Yukon government infrastructure funding ensures no adverse impact on ratepayers.
Diesel Units Life Extension or ReplacementThere are seven diesel generators at our Whitehorse Rapids Generating Station. Our three oldest ones are currently scheduled for retirement between 2007 and 2011. We have confirmed that it is technically feasible to refurbish these units, thus extending their lives by 20 years or more at an expected capital cost of $6.4 million, and work is progressing in a staged manner on this project. Refurbishing these units will provide an added 14 megawatts of winter power on the Whitehorse-Aishihik-Faro grid.
Replacing these three units with new diesel units would likely cost, in 2005 dollars, about $6 million more than the estimated refurbishing capital cost.
Replacing these three units by building a second, back-up, transmission line from Aishihik to Whitehorse would also be more expensive than diesel-related improvements. We would only look at this project if new mines are connected to our Whitehorse-Aishihik-Faro grid without the completion of the Carmacks-Stewart line and without the diesel generators’ life extension being completed.
Longer-term Industrial Development OpportunitiesThe Resource Plan also proposes activities to enable Yukon Energy to start construction on other projects before 2016 if opportunities arise to meet the needs of potential new industrial customers, including various potential mines and the Alaska Highway pipeline project. Hydro supply options are identified that offer substantial opportunities, if required, to produce power over the long term at a cost lower than diesel generation, provided that specific energy supply resource options are properly matched to expected system loads. New energy-focused power development is contingent, however, on sufficient new industrial power loads materializing. Without new industrial power loads, the plan forecasts that surplus hydro energy generation is likely to remain on the Whitehorse Aishihik Faro grid for at least 15 of the next 20 years.
