The “Equalized Rate System” Explained

Billing

Feb 23, 2009  1

Today we are tackling a question we have often been asked over the last few months:

If I am a Yukon Energy customer, why do I have to pay any rate increases approved for Yukon Electrical Company Ltd?

It's a good question! In Yukon, we have what is known as an equalized rate system. That means that no matter where people live (whether they live in a community served by hydro or by diesel) and no matter who provides them with power (Yukon Electrical Company Ltd. or Yukon Energy) residential customers will pay the same rate for their first 1,000 kilowatt hours a month of electricity. Business customers will pay the same rate for their first 2,000 kilowatt hours per month of electricity.

If Yukon Electrical Company Ltd. is granted the rate increase it has recently asked for, all Yukoners will see that increase on their bills. If Yukon Energy is granted the rate decrease we have applied for, all Yukoners will see that decrease reflected on their bills.

So what's the bottom line for you? Watch for a future posting when we will try to answer that question.

1 comment

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Comments

by 1 of the many

I have taken an interest in the rate applications of you and Yukon Electric lately. I decided to become informed so that I may understand some of the concerns better. I can see why most the majority of the public do not engage. Yukon Electric’s application is over 380 pages long and yours is over 250 pages not including the appendices! - most of the verbage is either legal or expert (utility). I must say that it does not lend itself to simplicity.

I have to wonder why in a small jurisdiction as the Yukon there are 2 separate utilities?

You mention that Yukon Electric is asking for an increase in rates and you are asking for a decrease - seems counter productive. That being said, please explain how ‘all Yukoners will see the decrease’ if your decrease does not apply to all customers. My limited understanding is that the decrease is for small users of power - less than 1000kwhrs. That certainly does not apply to me and my home (which I believe to be average). I also understand that once you use a certain amount of power, Yukon Energy is looking at increasing rates. Could you explain? Use my amount as an example - I am usually around 1300 kwhrs and I have used as much as 1800 kwhrs. Using those 2 amounts, would they see an increase or decrease based on Yukon Energy’s rate application?

Thank you

03.08.2009