Open letter to David Morrison, president of Yukon Energy Corporation:
During the Mayo B hearing process, we heard from you that Yukon Energy did not have sufficient construction financing in place at that time.
It was unknown if some type of corporate bond structure would be initiated or if the corporation would have to borrow from some other institution to build the generating facility and complete the transmission line from Pelly to Stewart.
Lately, we have heard in the media, that Yukon Energy or Yukon Development plans to issue $100 million in bonds.
Is this the correct premise? If this is indeed the case, we have further important questions we would like you to clarify.
1) When will these bonds be issued? Who will issue these bonds? Who can purchase said bonds? Will these said bonds be offered outside the Yukon? Who will pay the said bonds’ interest and principal?
2) Why is Yukon Energy needing $100 million? The cost for the Mayo B project was stated to cost $120 million with the Pelly-to-Stewart power line pegged at $40 million, totalling $160 million.
Ottawa allocated $71 million and the ratepayer proposed at $36.5 million, leaving $52.5 million for YTG/YDC.
3) My next question would be: What is the extra $47.5 million for?
Please respond to your ratepayers promptly.
Utilities Consumers’ Group