On July 12, 2022, the Yukon Utilities Board approved our 2021 General Rate Application Compliance Filing. The final rate adjustment will come into effect August 1, 2022 and have nearly zero impact on electricity bills.
On August 1, 2022, Rider F (fuel) will also be added back onto electricity bills at a charge of $0.00865 / kWh to customers. Rider F can be a charge or credit to customers and fluctuates depending on how much it costs Yukon's two utilities to purchase fuel for our diesel generators. Rider F had previously been reduced to $0.00 / kWh in July 2021.
| November 2020 |
July 2021 after 1st "increase" |
December 2021 after 2nd "increase" |
August 2022 final adjustment |
|
|
Residential, non-government account (1000 kWh/month usage) |
$204.00 |
$204.00 no change |
$204.00 no change |
$204.90 $0.90 increase |
|
Commercial, non-government account (2000 kWh/month usage; 5 kW demand) |
$358.84 |
$355.30 $3.54 reduction |
$355.30 no change |
$359.07 $3.76 increase since July 2021 $0.23 increase since November 2020 |
*all total amounts include Rider F and are before rebates and taxes
November 20, 2020: We filed our 2021 General Rate Application with our regulator, the Yukon Utilities Board. The application outlined a way for us to recover the cost of investments needed to meet growing demands for electricity and replacing aging equipment, while also having a nearly zero impact on Yukon electricity bills.
July 1, 2021: The first stage of our 2021 rate increase was applied to electricity bills. This was the same day that Rider F (fuel) was reduced to zero. The net impact of that change was nearly zero. Average residential electricity bills stayed the same, while bills for typical business customers went down.
December 1, 2021: The second stage of the rate increase will be applied to electricity bills. This is the same day that the Yukon Energy 2017/18 GRA True-up line item on bills is removed. The net impact of this change is zero for most residential and business customers.
March 16, 2022: The YUB has issued its decision about our 2021 rate application. The next step is for us to submit a Compliance Filing based on the YUB's findings. The Compliance Filing will be submitted to the YUB on or before April 16, 2022. Any final adjustment to our 2021 interim rates will be made after that.
Being a Canadian leader in sustainable electricity requires ongoing investments in our electricity system. Between 2019 and 2021, we expected to invest more than $55 million in projects that were needed to meet future demands for clean energy, replace and refurbish the aging assets we already have, and deliver reliable electricity to Yukoners as new projects are built.
But we recognize that every dollar we spend is passed on to Yukoners in the form of electricity rates. Our Board of Directors and staff also understand that paying more for power can be hard for some Yukoners, especially during the COVID pandemic.
Our 2021 rate application asked for:
A summary of our rate application and answers to some frequently asked questions are below. View the full rate application and all regulatory documents related to this proceeding at yukonutilitiesboard.yk.ca.
Think of Yukon’s electrical system as Yukon Energy’s “house”. It was built in the 1950s. Like any old house, it needs significant and unavoidable repairs and upgrades. In order to keep up with demand, especially during periods of peak demand in the dead of winter, it also needs additions. And, like every other business, we’re facing steadily rising costs.
As a regulated utility, Yukoners pay what Yukon Energy pays to plan, build, operate and maintain Yukon’s power generation and transmission assets, and distribution equipment in the communities we directly serve. As we invest more in the electricity system and costs go up, so too must electricity rates.
Replacing and upgrading aging equipment
From 2019 through 2021, we spent more than $28 million to replace and refurbish assets that are at or near end-of-life.
Examples included our share of the Mayo to McQuesten Transmission Line Replacement Project, replacing one of the head gates and repairing two of the four penstocks at the Whitehorse hydro dam, refurbishing old transmission lines and implementing a new asset management system.
Meeting growing demands for power
Between 2018 and 2020, peaks demands for electricity grew by 17%. We also expect them to rise by another 40% by 2030 as Yukon grows and electricity is used more frequently for heating and transportation.
From 2019 through 2021, we spent more than $27 million planning and building the new supply projects needed to meet that peak demand with reliable sources of electricity.
Examples included uprating our Whitehorse Hydro #2 and Whitehorse Hydro #4 units to add capacity and generate more renewable electricity with the same amount of water, the addition of the third liquefied natural gas unit in Whitehorse, and installing the equipment needed to allow for the installation of rental diesels in Whitehorse and Faro.
Running our day-to-day business
Like other businesses, we’ve seen a steady rise in day-to-day costs of labour, materials and supplies. Increases in fuel prices alone account for 20% of additional costs we expect to incur between 2019 and 2021. Renting diesel generators each winter to protect Yukoners from prolonged power outages in case one of our large hydro units or transmission lines breaks has also contributed to higher annual operating costs.
Our Board of Directors and staff recognized that paying more for electricity could be hard from some Yukoners, especially during the COVID pandemic. That’s why we worked hard to find a way for the rate increase to have little impact on electricity bills.
What our 2021 General Rate Application proposed was a way for us to make the investments we needed to replace aging assets and meet growing demands for electricity, while providing some bill stability for Yukoners, especially those on a fixed income.
We never lose sight that at the end of the day all costs we incur are passed on to Yukoners in the form of electricity rates. That’s why we’re always looking for opportunities to obtain government funding for the projects we undertake to minimize costs passed on to you. In 2019, we were successful in getting nearly $40 million in funding from the Government of Canada for our Peak Smart program, the Mayo to McQuesten Transmission Line Replacement Project and our new grid-scale battery.
Even with our 2021 rate increase, electricity rates in Yukon remain the lowest in the North.
Yes. Yukon Energy and Yukoners will need to help pay for the renewable electricity future we all want and that is needed to reduce carbon emissions in the territory. With more than $500 million in investments needed over the next 10 years, our priority remains building partnerships and obtaining government funding to help keep rates affordable.
The best way for Yukoners to reduce their electricity bill is to reduce the amount of electricity they use. Visit inchargeyukon.ca for ideas.
You can view our rate applicationat yukonutilitiesboard.yk.ca.