Yukon electricity rates could rise by 11% over 5 years
Company says it needs $60M for various upgrades
The Yukon Electrical Company wants to increase its rate by 11.7 per cent over five years.
That's in addition to rate increases already approved for the Yukon Energy Corporation, which produces most of the power in the territory.
The electrical company, which distributes power and bills customers, says it needs additional money to upgrade a stretched and faltering electrical system.
"With the growth that's been experienced over the last few years… there's aging infrastructure, and there's extra loads on the system now," said Dwight Redden, general manager of the Yukon Electrical Company.
Redden says the company needs to invest $60 million for a number of projects.
"The system improvements around Fish Lake, Whistle Bend, generating equipment that's in the communities, upgrading some of those plants."
Redden says demand is increasing about two per cent a year for electricity, and he said the company cannot keep up if customers don't pay more.
"There wouldn't be sufficient funding then to do these investments. We want to make sure that the system is safe, that it's reliable, that is meets the growing energy demands."
Yukon Electrical's rate application would be spread out over five years. The application first needs approval from the Yukon Utilities Board.
The utilities board already approved a 6.4 per cent rate increase for Yukon Energy last year. The board is currently considering a request for an additional six per cent increase for Yukon Energy this year.