Our Rate Application Explained | Friday, March 27, 2009
One of the benefits of our new transmission line from Carmacks to Pelly Crossing is that it has allowed us to ask for a rate decrease. Before the line was built, we promised to pass along to Yukoners some of the additional revenue we would receive as a result of gaining a new customer, the Minto mine, through the construction of the Carmacks to Pelly line. That’s why in October of last year we asked our regulator, the Yukon Utilities Board, to approve changes to our rates that would result in an overall saving to Yukoners this year of more than $1.3 million.
We wanted to go further than just passing along revenues from the Minto mine. We wanted to provide the biggest reduction possible to the largest number of Yukoners possible. That’s why we have proposed changes to our rate structure that will reward those who practice energy conservation. Here’s how it works: rates would be substantially reduced by 17.8 percent for a household’s ‘first block’ energy charges; for the first 1,000 kilowatt hours per month of energy used. ‘Second block’ energy charges (energy over 1,000 kilowatt hours a month) would increase, the amount dependant on the amount of energy used. All the added money we would receive from ‘second block’ charges would go to further reducing ‘first block’ rates. Since most households stay within that first block of 1,000 kilowatt hours a month (the average monthly usage is about 750 kilowatt hours) this method would allow more Yukoners to benefit from greater savings.
Two tiered rate structures are not new. Similar systems are used by utilities right across the country, and Yukon Energy has had a two-tiered system in place for many years in which the second block is at a higher rate than the first.
It was important to us to encourage energy conservation though this application. There is a growing demand for electricity in Yukon. While we are aggressively looking for new renewable power to meet this demand, this process takes time. In the absence of new generation, we face the prospect within a few years of running out of hydro and turning on our diesels. That’s why it’s important to us that we send price signals to encourage energy conservation. Conservation is the cleanest and least expensive way to meet the increase demand for electricity (think of it as building a virtual dam). And it’s easier than you might think…turning the thermostat down one degree saves 400 kilowatt hours per year; washing clothes in cold water saves as much as 720 kilowatt hours. Hanging clothes to dry even half the time saves another 520 kilowatt hours.
However if our proposal is approved, there will still be some overall savings for residential customers who use up to about 1,300 kilowatt hours per month. For example, if you use 1,000 kilowatt hours per month you will see a reduction of $22.26 on your bill; if you consume 1,300 kilowatt hours you will still save $1.16 per month. Once you start using more than that, you will have to bear an increase. At 1,400 kilowatt hours a month, you will pay $5.88 more per bill. If you use 1,500 kilowatt hours, you will face increases of $12.91 a month.
The Yukon Utilities Board Response
In November last last year, the Yukon Utilities Board said it wanted to wait for a future hearing to consider the rate adjustments we have proposed for ‘first block’ and ‘second block’ customers. In the meantime, the Board has ordered us to implement an interim rate reduction of 3.48 percent. The interim rates went into effect on December 1, 2008.
The Utilities Board hasn’t said an outright ‘no’ to our request. It’s merely said it doesn’t want to make a decision about our proposal at this time.
The oral public hearings for our rate application are set for this coming May. We hope that at that time, the Utilities Board will be open to considering our proposal.
» 0 Comments » Topics: Billing | Regulatory
The Bottom Line | Wednesday, March 25, 2009
In an earlier posting we talked about the fact that Yukon Energy has asked our regulator, the Yukon Utilities Board (YUB), for a decrease in rates, while Yukon Electrical Ltd. has asked for a rate increase. One of you wrote that the total amount on your electric bill is all that’s really important.
Today we’re going to speak about that bottom line. We will try to shed some light on the changes you’ve seen in your power bills over the last several months, and changes that are still to come. A warning that we are going throw a lot of numbers at you, but bear with us…we will try to keep the ‘head swimming’ factor to a minimum.
Let’s take an example of a homeowner who uses 1,000 kilowatt hours of electricity each month (the average usage in Yukon is about 750 kilowatt hours per month).
Last July, this person’s bill would have been $132.80, including GST.
The Yukon Electrical Company Ltd. asked the Yukon Utilities Board to approve an 11 percent increase in rates. While the YUB considered the request, it approved on an interim basis an increase of five percent, starting on August 1 of last year.
Assuming our sample homeowner used the same amount of power in August as in July, their bill increased to $138.60.
Then Yukon Energy asked for a rate decrease of 17.8 percent for residential customers using 1,000 kilowatt hours or less a month. While the YUB considered our request, it approved an interim decrease of 3.48 percent, starting December 1, 2008.
As a result, our homeowner’s bill decreased to $134.56 starting in December. Again, this is based on 1,000 kilowatt hours of electricity used.
If the Yukon Utilities Board had approved Yukon Energy’s request for a 17.8 percent decrease, our homeowner would have seen their bill reduced to $116.34 a month.
Are you still with us? There’s more as we look beyond the end of 2008!
The Rate Stabilization Program is a Yukon government subsidy you will notice on your power bill. The program is scheduled to end in July of this year. If that happens in combination with Yukon Energy’s request for a 17.8 percent decrease and all other rates in effect prior to last December, our homeowner’s bill would be $135.84.
The two utilities have announced that the Fuel Adjustment Rider (Rider F) has been reduced to zero for bills starting March 1, 2009, until the Yukon Electrical Company Ltd.‘s final rates are determined. This will save our homeowner $19.53 per month during this period.
We are still waiting to learn the final amount that the Yukon Electrical Company Ltd. will be allowed to charge its customers. But based on a recent ruling from the Yukon Utilities Board, the Yukon Electrical Company Ltd. will not receive the full 11 percent increase it asked for. Yukoners should know within a few months what the final numbers will be.
It’s important to us that you understand we have no control over what Yukon Electrical Company Ltd. is allowed to charge by the Yukon Utilities Board. We don’t have control over the fate of the Rate Stabilization Fund either. But in the areas we can control, Yukon Energy is doing everything we can to keep electrical rates as low as possible for the greatest number of Yukoners possible.
In our next posting we will talk more about the rate changes we have asked our regulator to approve and we’ll explain the rationale behind our request.
Note that one of you recently asked what your bill might look like if you used between 1,300 and 1,800 kilowatt hours per month. We will address this issue of ‘second block’ electricity usage in our next posting as well. Please keep those questions coming; we will try to answer each and every one of them.
» 0 Comments » Topics: Billing
A Night in the Museum | Monday, March 23, 2009
No, we are not referring to the 2006 Ben Stiller Hollywood movie! In this case we’re talking about the Dawson City Museum, which is launching a new educational program today. Yukon Energy’s role was to provide the money needed to develop the cirriculum.
The initiative will see elementary students from grades 4 to 6 experiencing the hardships and rewards of the Klondike Gold Rush in a hands-on way. When the students arrive at the museum, they will be jettisoned back in time to 1898. They’ll assume the character of one of the people who came to the Klondike in search of riches. Over two days, they’ll be faced with many of the same choices that the earlier gold seekers had to make, albeit in a safer environment than that of their predecessors. Should they come by the overland route or attempt to scale the Chilkoot? What do they need to be successfully outfitted? Will they fall for a scheme? The students will have to live with the consequences of each choice.
A local RCMP officer will be set up at the top of the Chilkoot (the grand staircase in the museum) and will determine whether the students will be allowed in to Yukon. If they haven’t brought all the necessary supplies, they’ll either be turned back or have to make their case with the constabulary as to why they should be let in. Another community volunteer will play the role of the infamous Soapy Smith, who will try to con the students in Skagway (the museum’s Lind Gallery).
Yukon Energy chose to be a part of this project for a couple of reasons. First, we have a mandate to give back a percentage of our profits to the communities and people we serve and we take that mandate very seriously. But more specifically, we recognize that an experiential program like this provides an opportunity for students to learn in a way that is much more profound and long-lasting than merely sitting in a classroom. We believe the money we provided for teaching materials will benefit a great number of Yukon children.
If you are a teacher and would like your school to become a part of this project, you can contact the Dawson City Museum at
» 0 Comments » Topics: Community Involvement
Hiatus | Wednesday, March 4, 2009
There will be little if any activity on this blog for the next two weeks, as the person who maintains this site will be away. Please feel free to submit your questions or comments and they will be posted once the webmistress returns.
» 0 Comments » Topics: General
Protecting Your Equipment | Wednesday, March 4, 2009
One of the purposes of this blog is to answer as many of your questions as possible. Here’s a query we received recently from a Yukoner: how do I protect my computer equipment and appliances from damage as a result of a power outage?
We always encourage people to take steps to protect their equipment, since utilities are not liable for damaged equipment (not what you want to hear but it is the reality). There are a number of options you can consider.
If you want to protect all your electronics, as opposed to just one appliance or piece of equipment, a qualified electrician can install an in-line surge protector. It’s a device that snaps into the home’s electrical panel. It won’t prevent a power outage to the home but it should protect your equipment and appliances.
If you are concerned about a single piece of equipment (your computer for example), you can install a UPS system. There are several local stores that supply these systems. We suggest you speak with the store staff about the type of system that would be best for you. You can also consult the manufacturer of your equipment to determine what level of voltage protection you need.
When shopping for an electronic device, you should ask whether the equipment has a built-in back-up system that prevents program disruption when power is lost briefly. You might also want to look for appliances with back-up systems that will ‘remember’ settings when power is interrupted.
Standby or portable generators can be used during a power outage. However it’s critical that a certified electrician properly interconnect the standby power system to your existing home wiring. Installing and maintaining a portable generator can cost several thousand dollars.
Have a question for us? Please send it along and we will try to answer it to the best of our ability.
» 0 Comments » Topics: Reliability