Statement from Minister Laking on ongoing work to build a secure, reliable and affordable energy system for Yukoners

Minister of Energy, Mines and Resources, Minister responsible for the Yukon Development Corporation and Minister responsible for the Yukon Energy Corporation Ted Laking has issued the following statement:

“Yukoners have been clear about the pressures on household budgets this winter, especially during prolonged cold snaps that pushed our grid to its limits. Energy affordability and security are priorities for our government and we want to be transparent about the situation and our plan.

“If we want to keep the lights on, heat homes and businesses and avoid rotating power outages in -50°C weather, then we need investments in new generation capacity and to repair aging infrastructure that is at risk of failure.

“Last May, Yukon Energy applied to the Yukon Utilities Board for new electricity rates for 2025 to 2027. The application proposed a 34 per cent increase over three years to fund critical investments that maintain renewable generation, improve winter reliability and replace aging infrastructure. The board approved interim rate increases starting July 1, 2025, and January 1, 2026. On January 20, 2026, the board approved most of Yukon Energy’s application, leading to significant rate increases.

“It is not fair for Yukon families to shoulder these increases alone. That is why we introduced the Affordability Rate Relief program for residential customers, on top of the Winter Energy Affordability Rebate. Together, these provide up to $60.51 in rebates per month on January, February and March 2026 bills while we work on a longer-term solution to address our energy and affordability needs.

“The current rate application includes $350 million for essential projects and required regulatory costs, including:

• The new Whitehorse Power Centres project to improve reliability and handle peak demand, with $57 million for Phase 1, resulting in a net 1.7 per cent increase to bills.
• A battery energy storage system to support winter peaks and grid stability, costing $35 million, resulting in a 1.5 per cent increase to bills after $16.5 million contributions from the Government of Canada.
• Mayo Hydro Facility safety upgrades to stabilize rock slopes and protect critical infrastructure, costing $106 million, resulting in a six per cent increase to bills.
• Thermal replacements to replace aging diesel units used for dependable winter power and emergencies, costing $44 million, resulting in a 3.23 per cent increase to bills.
• Renewals of water use licences to keep Whitehorse, Mayo and Aishihik hydro facilities operating, costing $30 million, resulting in a 2.7 per cent increase to bills.

“Due to a decade of underinvestment in our energy system, these investments are only the beginning. Our government is advocating for federal partnership funding to reduce the burden on ratepayers. The scale of our near-term needs is substantial. We estimate that more than $1 billion is needed for urgent repairs, new generation capacity and investments that also support the Government of Canada’s sovereignty objectives.

“In parallel, we are developing a Winter Reliable Energy Plan to set a clear path to long-term power reliability and affordability. This will determine future investments to protect the grid and support growth, including a projected increase of around 40 megawatts in non-industrial demand over the next five years.

“We are also advancing early assessment work on a potential connection between the Yukon and B.C.’s electricity grid. Over the longer term, this could support partnerships with Yukon First Nations and help address high energy costs and reliability risks of our islanded grid.

“While this work is underway, the Yukon will continue to use rented diesel units as a short-term backstop as needed. This approach has cost more than $70 million and is not a sustainable long-term solution. We need to transition to owned, dependable infrastructure.

“While our challenges are real, they are manageable with careful planning, sound decisions and collaboration. Yukoners deserve reliable, affordable power and our government is committed to delivering it.”