Yukon Energy asks to hike power rates by 9%

Yukon Energy says rising costs and aging infrastructure mean power rates need to go up for Yukoners by about $181a year, for the average homeowner.

The company has applied to the Yukon Utilities Board to allow a nine per cent rate increase over two years. That would see the average residential power bill go up by about $12.29 per month this year, and an additional $2.83 per monthnext year.

"We certainly appreciate that no one likes an increase to their power bill, but I think if you look across Canada we still have very competitive rates," said Andrew Hall, president of Yukon Energy.

"If you look at our electricity rates compared to other cities in the Northsay Yellowknife and Iqaluitwe're still substantially cheaper."

Yukon Energy's last rate increase was in 2013.Hallsays, since then, there have been negotiated salary increases for employeesand ongoing costs to repair and upgrade equipment.

"Over a period of time, those cost increases do accumulate. In addition, we've been making some investments ... to replace aging infrastructure."

'How much is reasonable?'

Customers will have a chance to weigh in on the proposed rate increase, when the Utilities Board holds public consultations. Dates have not been set.

Roger Rondeau of Whitehorse intends to speak up. He's president ofthe Utility Consumers Group, which he describes as "just a grassroots group of people that have been fighting all types of either energy, or telecommunications, or city things anything to do with utilities."

"Any rate increase is not a good thing. But in reality, you know there has to be some," he said. "The thing is, how much is reasonable?"

Rondeau is not sure whether Yukon Energy is being reasonable.

"The big thing that bothers us are cost overruns. You look at the natural gas plantthey got permission from the [Utilities] Board to put that in at $36 million, and now it's up to $42 [million]," he said.

The Yukon Utilities Board is a regulatory board that is mandated to review rates for the publicly-owned utility. It can prohibit or limit any proposed rate increases.