Power lines in winter. Stock photo; not taken in Yukon. man64 / Depositphotos.com
Whitehorse, YT – Yukon Energy, Mines and Resources Minister Ted Laking is calling for federal funding for the territory’s electricity system, warning that further infrastructure costs could drive rates higher.
In a statement released October 21st, Laking outlined concerns he brought to the House of Commons Standing Committee on Indigenous and Northern Affairs during its study of Arctic affordability a day earlier.
Laking says Yukon families face electricity rate increases totalling 34 percent between 2025 and 2027. He attributes those increases to investments already required to maintain aging infrastructure, replace equipment and expand generating capacity.
The minister says the territory faces more than $1 billion in additional electricity infrastructure needs over the coming years. Without significant federal investment, he warns those costs could lead to another 53 percent rate increase.
The Yukon’s electricity system is not connected to any Canadian grid. Laking says the cost of maintaining and expanding the system falls on roughly 24,000 ratepayers.
He also raised concerns about reliability, saying the system came close to rolling blackouts during temperatures near minus 45 last December. Industrial customers disconnected from the grid and generated their own power to help stabilize the system, according to the minister.
Laking warns that insufficient electricity could limit new housing developments, business growth and major industrial projects.
“We cannot build a stronger Canadian north by pricing northern Canadians out of it,” he said.
Laking described discussions with Ottawa as encouraging, but his statement did not identify a federal funding commitment or a timeline for assistance.
