An ice buildup at Aishihik hydro plant in late January justifies the need for sources of “firm winter power” like LNG, diesel and backup rented diesel units, according to a recent online update from the Yukon Energy Corporation, often referred to as Yukon Energy or YEC.
These backup sources allow Yukon Energy to meet growing peak demands for power in the winter and provide electricity in the face of extraordinary events including equipment failure and prolonged cold weather, particularly since the Yukon grid isn’t connected to any other province or territory and Yukon Energy can’t import electricity when needed or export power when there’s a surplus, per the update.
The update notes that hydro, liquefied natural gas (commonly known as LNG) and diesel offer a “dependable capacity” that can be called upon anytime, unlike solar and wind.
No power outages occurred while the hydro plant was offline thanks to the backup sources, as noted by Yukon Energy, plus the electricity supply to mines was cut down and ATCO Electric Yukon’s diesel units were used to make power.
The last time the Aishihik hydro plant went offline in 2017 it caused several power outages to customers, Yukon Energy said.
The update outlines Yukon Energy’s plans for next winter: renting 22 diesel generators; offering the Peak Smart Home program, which helps Yukoners shift their use of electric heat and hot water tanks to off-peak times; formalizing mutual aid agreements with those who can curtail electricity use during emergencies and potentially procuring additional resources.
Demand goes up two to three times in the winter compared to summer, with peak demand up by 23 per cent from 2017 to 2022 and expected to continue going up, per the update.
Yukon Energy and ATCO are both regulated by the Yukon Utilities Board (YUB).
Yukon Energy has filed its 2023-24 general rate application, which is a public process intended to ensure rates are reasonable and justified, with the YUB. If it goes through, average residential and commercial bills will go up by three per cent in fall 2023 and again in August 2024, according to the Yukon Energy website.
“The increases are needed so that we can make the investments required to reinforce the backbone of the Yukon’s existing electricity system,” reads the website.
“At the same time, the increases will also allow us to advance projects that will secure the supply of sustainable and reliable electricity in the territory, and programs that will help Yukoners take an active role in shifting peak demand for power.”
An oral public hearing is being held March 4 to 7.
Opening statements by Yukon Energy and intervener Nathaniel Yee are available on the YUB website.
In his opening statement dated March 1, Yee’s focus has been on contrasting what Yukon Energy has presented to the board with what it has presented to others.
Per Yee’s opening statement, Yee wonders why customers should have to pay for capacity that Yukon Energy doesn’t have authorization to operate.
Furthermore, Yee argues Yukon Energy has attempted “character assassination” of Yee by providing “false and misleading,” as well as “defamatory,” information in its rebuttal.
A part of its rebuttal during the general rate application process, Yukon Energy referred to Yee providing to the News a letter Yee wrote to the territorial Environment department about Yukon Energy as “leaking” which Yee says is inappropriate given Yee authored the letter.
As reported by the News, in that letter, Yee claims Yukon Energy provided “false and incomplete” information to the territorial Environment department about the proposed expansion of the Faro diesel facility to avoid environmental assessment. The energy corporation denies the claim.
In its opening statement dated March 1, Yukon Energy said Yee’s submission “consists largely of argument, making various allegations of fraud against Yukon Energy.”
Yukon Energy disputes all Yee’s allegations in the submission, per the statement.
“Providing safe and reliable service is the overriding concern that we have — and this drives all of our decision making. With regard to the diesel rentals, the evidence before the board consistently shows that YEC can and will operate any of its diesel rental units if and when it may become necessary to do so to protect the welfare, health and safety of Yukoners during an emergency,” Yukon Energy said it its opening statement, citing emergency events in December 2022 and January 2024.
“YEC exceeded its permitted diesel generation capacity in Whitehorse during each emergency in order to protect the welfare, health and safety of Yukoners by ensuring uninterrupted service to customers. YEC has been clear and transparent about this to the board and to regulators and has acted accordingly.”
Final and reply arguments are scheduled for March 22 and 29.
Contact Dana Hatherly at dana.hatherly@yukon-news.com