Application for Approval of a Power Purchase Agreement with Alexco
In 2010, Yukon Energy sought and was granted approval from the Yukon Utilities Board for a Power Purchase Agreement between the energy corporation and Alexco Resources. The agreement is for the supply of electricity to the new mine and mill site at Keno. It also applies to any other new mine/mill operation that Alexco develops in the future in the Keno area.
Under the terms of the PPA, Alexco is responsible for the full cost of:
- construction of a 1.65 kilometre spur line from Yukon Energy's Mayo to Keno transmission line to the mill site (approximate cost $330-thousand)
- negotiating and concluding the Power Purchase Agreement, including the regulatory costs (approximately $100-thousand)
- decommissioning of Yukon Energy's spur line once the mill shuts down.
In addition, Alexco must pay a fixed charge of almost $7,300 per month for as long as it purchase power from Yukon Energy as an industrial customer. The money will help pay the costs of Yukon Energy's existing Mayo-Keno transmission line.
Alexco will pay the Industrial power rate set by the Yukon Utilities Board. The rate is approximately 10.5 cents per kilowatt hour, depending on Alexco’s peak demand.
The complete application can be found below.
- Application Re: Alexco PPA (2843 KB)