The Yukon Energy Corporation is hoping more than $350 million in system-wide spending over three years will be approved by the Yukon Utilities Board as part of its 2025-27 General Rate Application (GRA), according to a press release issued May 15.
If approved, Yukoners could see their power bills go up.
The press release estimates that residents who use about 1,000 kilowatt-hour of electricity on average per month can expect their bills to go up by about $25 to $30 a month in 2025 and again in 2026 and again in 2027.
Yukon Energy’s president Chris Milner told the News by phone on May 15 that many of the projects put forward in the GRA are needed to strengthen the system.
The utility board determines the timing and amount of bill increases, per the release.
A large portion of the money is planned to go towards reconstructing the Mayo spillway (which helps flow water when there’s too much of it to generate energy), stabilizing the slope near the Mayo A plant and replacing the aging surge chamber (which absorbs sudden pressure changes in the penstock to protect generating station equipment). Rockslides occurred in 2022 and 2023 behind Mayo A and the slope remains unstable, as noted on the Yukon Energy website.
That work alone could cost more than $180 million.
Other projects include finishing the Whitehorse grid-scale battery energy storage system; renewing water licences for the Whitehorse, Mayo and Aishihik hydro facilities; replacing old diesel units in Faro and Whitehorse; and adding new poles, wires and backup diesel capacity to Dawson City’s local power system.
Milner said the gear for the battery project, including the batteries themselves, have arrived in the territory. The batteries were recently installed into the containers, and electrical and Canadian standards testing is being done in preparation for commissioning.
It's anticipated the battery storage project will be operating by winter 2026, per Milner.
“Once complete, the battery storage system will help Yukon Energy meet peak demands for electricity during the winter and improve reliability,” reads the energy corporation’s website.
Milner said the energy corporation is looking to partner up to obtain external sources of funding to avoid rates going up. He indicated they are seeking partnerships particularly around the work at Mayo.
For example, government funding to the tune of $16.5 million for the $35-million battery storage project helped keep consumers’ bills at bay, reducing them by $3 a month, according to the release.
Milner said a similar trend is being observed across Canada in terms of the need to invest in energy systems and aging infrastructure combined with population growth.
“That really drives the urgency,” he said.
“I think one of the things that, in the Yukon, that's really important is that the reason why our rates are the lowest across the North and will remain that way is because of the existing hydro facilities.”
The release notes the GRA will go before a public review and isn’t expected to be approved until early 2026.
Contact Dana Hatherly at dana.hatherly@yukon-news.com
