Yukoners can expect their electricity rates to go up, according to the territorial energy minister, as the Yukon Energy Corporation’s capital plans involve spending more than $500 million over the next five years to “build a robust and resilient grid” including $100 million on two new “thermal power centres near Whitehorse.”
Energy, Mines and Resources Minister John Streicker tabled Yukon Energy Corporation’s latest plans for 2025-30 in the legislature earlier this week, making them public.
Yukon Energy Corporation representatives were called in as witnesses to take questions from Yukon MLAs in the legislative assembly on April 9.
Yukon Party energy critic Scott Kent was in the midst of questioning energy corporation representatives in the legislature on April 9 when the power went out around 4 p.m. and the legislature was eventually adjourned for the day.
The Yukon Legislative Assembly’s regularly scheduled sitting for April 10 was cancelled due to an “electrical system failure,” according to the projected order of business.
Energy strategy
Streicker indicated to reporters in the cabinet office on April 9 that while power rates will increase, it’s not clear by how much.
“Depends on how much dollars we go for on the infrastructure side and how much gets left on the ratepayer side,” he said. He cited the costs of inflation, labour and fossil fuel reliance as pressures on the energy file.
“That's why you have a utility board and why you take rates to them. I think it's fair to say that the cost of electricity is creeping up.”
The energy corporation’s strategy involves a couple of new power centres that are expected to provide up to 85 megawatts of winter capacity to the Yukon’s system, with up to 45 megawatts of new capacity.
“Once complete, these power centres will provide the dependable capacity that Yukoners can count on during the winter and serve as a reliable source of backup power to new intermittent renewables,” reads Chapter 1 of the strategy.
“By investing in the thermal resources we need today, we can ensure a long-term, reliable and cost-effective solution by reducing the number of rental diesel generators in operation. These power centres will also be built considering the space and electrical infrastructure needed to install more battery energy storage systems in the future.”
Streicker said the old plan was built around Atlin hydroelectric and Moon Lake pumped-storage projects in Northern B.C.
“Those projects have not come forward, so we need a new plan. And Yukon Energy has been working on a new plan for the last little while, and they laid out the roadmap,” Streicker said.
Streicker listed off projects and programs that have come online or are in the works: solar in Old Crow, Beaver Creek and Watson Lake; wind and battery backup in the Kluane region; the microgeneration program, which the former Yukon Party government brought in; four wind turbines on Haeckel Hill; and investment to look into connecting the Yukon's grid to British Columbia.
The Yukon government has been renting 22 diesel generators up to this point. The territory is moving to build two permanent diesel centres, per the plan.
Yukon Party Leader Currie Dixon said the plan is long overdue and necessary given today’s energy context.
Dixon wonders where the hundreds of millions will come from.
“(Streicker) forgets that it was his government that cancelled the last thermal generation plant planned for the Yukon back in 2019, and he and they did that under the auspices of not wanting to invest in fossil fuel-generated electricity, which is exactly what they're doing today. So, I mean, it could be hypocritical, it could be disingenuous, it could be gaslighting,” he said.
“This plan is a repudiation of the last five years and an admission of failure by this government.”
Streicker said he has been consistent in his messaging: the Yukon needs diesel or thermal for back up even as the territory transitions away from the use of fossil fuels.
“When I first came into this role, Yukon Energy told me clearly that rented diesels were the cheaper option. I was like, ‘Great, let's do that,’” Streicker said. He added energy costs are going up across the country.
“Now the recommendation to me is that it should be a diesel plant, because you will need it for the longer term. And I said, ‘Okay, great.’”
Streicker said the debate over renting or owning the diesel generators is technical and he trusts the Yukon Energy Corporation’s advice.
Streicker handed out a two-page document comparing 2024 residential electricity rates across the country.
The document suggests the Yukon has the lowest rates in the North. The Yukon’s rates are comparative to the rates for Edmonton and Calgary in Alberta, per the document.
Yukon NDP energy critic Lane Tredger wonders why the plan talks about renewables for the future.
“The strategic plan is pretty shocking in that it stops talking about renewables for now,” they said.
Tredger expressed concern about power bills going up as some Yukoners struggle with affordability.
“We believe that energy infrastructure should be like any other public infrastructure and funded by the public so that everyone can use it, and it's not adding another affordability burden on people,” they said.
Contact Dana Hatherly at dana.hatherly@yukon-news.com
