Yukoners debate 12 per cent power rate hike

The Yukon Electrical Company is making its case before Yukon regulators this week for a major rate hike. It wants users to pay almost 12 per cent more over the next three years to cover increased costs of delivering the power.

More than half the increase, 6.5 per cent, has been on consumer power bills since July. Yukon Electrical wants to add another three per cent in January and the rest in 2015.

The company blames the added costs on more customers using more electrical heat in Whitehorse, but energy consultant John Maissan questions operational efficiency.

"Seems the more customers we have, the more expensive it gets to serve them and what's wrong with this picture. It seems we should be getting some economies of scale and we don't seem to be getting it."

Maissan also questions capital expenditures of over $60 million over the next 3 years, which the company plans to pass on to ratepayers.

Anne Middler is the energy advisor with the Yukon Conservation Society. That group doesnt like the companys plan to convert its diesel generators to gas.

What is the incentive for Yukon Electrical, owned by Atco Gas... to invest in renewables that will be meaningful?" Middler asked. (Both Atco Gas and Yukon Electrical are subsidiaries of the Atco Group of Companies.)

A Utilities Board ruling on rates is expected early next year.