Yukon Energy has signed an electricity purchase agreement with Tlingit Homeland Energy Limited Partnership (THELP) to expand the supply of dependable renewable electricity in the territory each winter.

Pending various approvals, the arrangement would start in late 2024, it was announced late last week. The project cost is anticipated to be $206 million.

The agreement confirms THELP’s plans to build, own and operate the Atlin Hydro Expansion Project.

Yukon Energy would buy the hydro power and capacity generated by the project and make it available to Yukoners.

The proposed project would also include the construction of a transmission line between Atlin and Jakes Corner, about 90 kilometres south of Whitehorse.

Also envisioned is the construction of a substation at Jakes Corner, and upgrades to the ATCO Electric Yukon transmission line between Jakes Corner and Whitehorse.

Th Atlin initiative is designed to expand the infrastructure and power production capacity on Pine Creek from 2.1 megawatts to approximately 10 megawatts.

The agreement also outlines Yukon Energy’s intention to buy renewable energy and capacity from the Atlin project for 40 years.

That will happen at prices less than or equal to the cost Yukon Energy would otherwise pay for electricity generated using liquefied natural gas and diesel.

“When we released our 10-Year Renewable Electricity Plan in 2020, we set a bold vision of generating an average of 97 per cent renewable electricity by 2030,” Lesley Cabott, chair of Yukon Energy’s board of directors, said in a statement.

“Doing this provides Yukoners with more clean energy solutions to meet growing demands for electricity and helps (the) Yukon government achieve its climate change goals,” Cabott said.

When complete, the Atlin Hydro Expansion Project will add eight megawatts of dependable capacity to the Yukon grid – eliminating the need for four rental diesels each winter.

It will also generate about 31 gigawatts hours of electricity each winter – roughly the same amount of electricity used by about 2,500 Yukon homes annually.

“When Taku River Tlingit citizens mandated our corporate group to build our first project on Pine Creek, we were able to realize benefits to our community, to the town of Atlin, and to the region,” said Peter Kirby, president of the Taku River First Nation’s Taku Group of Companies.

Tlingit Homeland Energy Limited is a company 100-per-cent owned by Taku River Tlingit First Nation citizens.

“This expansion project will provide opportunity for us to effect more positive change in our community as well as reduce greenhouse gas emissions in the face of increasing climate change impacts.”

The power purchase pact is subject to a number of milestones being met over the next six months. Those include:

• a review by the Yukon Utilities Board (YUB);

• ongoing consultation with First Nations in the project area;

• approvals from the Taku River Tlingit First Nation government and the Yukon government; and

• all government grant funding and project permits being obtained by THELP.

Yukon Energy filed an application with the YUB for its review of the power purchase agreement on Jan. 20.

The YUB will now review the deal with the purpose to provide a report and any recommendations to Justice Minister Tracy-Anne McPhee on the potential benefits, costs, risks and customer impacts that influence whether the agreement should proceed.

The YUB’s final report is expected on or before July 19.

“Purchasing power from the Atlin Hydro Expansion Project is an excellent near-term opportunity for Yukon Energy to make more renewable electricity available to Yukoners and to reduce our reliance on diesel generators each winter,” said Andrew Hall, president and CEO of Yukon Energy.

“As demand for electricity continues to grow in Yukon, projects like this one are critical to helping us and the Yukon reduce our carbon footprint and build the clean energy future that Yukoners want.”

John Streicker, the minister responsible for Yukon Energy, said the Atlin project is an exciting opportunity for the Yukon to expand renewable energy capacity in partnership with First Nations while reducing the territory’s emissions and ensuring energy remains affordable for Yukoners.

“The Government of Yukon is pleased to see (THELP) work together to sign the electricity purchase agreement,” Streicker said.

“This is an important step forward in meeting the goals of Our Clean Future.”

A public hearing about the application is scheduled for April 20-22.

Persons intending to participate, and who are uncertain as to the way in which to proceed, can contact the YUB’s executive secretary at yub@utilitiesboard.yk.ca or at 667-5058.