Yukon Energy plans $80M transmission line to tiny Keno City

Yukon assessors are recommending Yukon Energy be allowed to startwork on a new, $80 million dollar project to replace the transmission line to its 20 customers in Keno City.

The corporationsays it's about providing reliable power, but also preparing for any future mining development in the region such as Victoria Gold's proposed Eagle mine, or the re-opening of Alexco's Keno Hill silver mine.

President Andrew Hall says the existing line between Mayo and Keno is essentially at "end of life."

"We've been maintaining it as best we can, but it's our worst performing line in terms of reliability. So, something needs to be done about that line," he said.

"We do have an obligation to serve even those 20 customers in Keno, and at a certain point we do need to invest in our infrastructure."

A 'shovel-ready' project

The project would see 112 kilometresof transmission line replacedbetween Stewart Crossing and Keno, and upgrades or expansions to substations along the way.

The YukonEnvironmental andSocio-economic Assessment Board (YESAB) has recommendedapproval, so work could start later this year.

Hall said the idea is to have a "shovel-ready" project"if and when there's funding available.

"There are possible ways to stage [the work]over time, if that's the way the funding is made available."