Business · Energy & Commodities · 2 hrs ago
Yukon asks Ottawa to fund most of its power grid upgrades
Yukon Energy Minister Ted Laking is asking Ottawa to pay three-quarters of the cost of urgent grid upgrades, with the territory covering the rest.
The proposed package, called the Arctic Sovereignty Grid Plan, has been submitted to the federal government for consideration as a project of national interest.
Yukon’s power network is isolated from the rest of the continent, so it cannot import electricity when local supplies fall short.
Demand is rising as the population grows and more people use electricity for heating and transport; winter demand is nearly three times summer levels.
Rates have already been approved to rise 34 per cent over three years, and Laking estimates another 53 per cent increase would be needed to pay for the upgrades without more support.
One major concern is the Mayo hydro facility, whose damaged spillway could fail and cause potentially life-threatening flooding in the nearby village.
The federal government has given what Laking called encouraging feedback, but the sources do not say whether it will provide funding.
Yukon is asking the federal government to pay three-quarters of the cost of urgent power grid upgrades.
Energy Minister Ted Laking says the territory and its ratepayers cannot afford to cover the costs alone.
He estimates rates would need to rise by a further 53 per cent to pay for repairs and upgrades.
The territory’s isolated grid faces rising demand and cannot import electricity during shortfalls.
The Mayo hydro facility is in dire condition, with its spillway at risk of imminent failure.
- Who
- Yukon’s government, represented by Energy Minister Ted Laking, is asking Ottawa for funding.
- What
- Yukon wants the federal government to cover three-quarters of the cost of grid upgrades under the Arctic Sovereignty Grid Plan.
- When
- The request was made by the time of the article’s publication on November 2, 2026. Laking testified before a House of Commons committee the previous week.
- Where
- Yukon, Canada.
- Why
- The territory says it cannot afford the urgent repairs and upgrades on its own, and warns that rates would otherwise need to rise further.
This story does not have two clearly opposing sides.
The Mayo hydro facility was commissioned.
Yukon’s population grew by more than one-quarter.
The Yukon Energy Board approved rate increases of 34 per cent over three years.
Electricity demand hit a record during a cold snap, and standby diesel generators helped avert rolling blackouts.
Laking testified before the House of Commons Standing Committee on Indigenous and Northern Affairs.
- Federal share requested
- Three-quarters of upgrade costs
- Name of plan
- Arctic Sovereignty Grid Plan
- Rate increases approved
- 34 per cent over three years
- Additional rate rise estimated
- 53 per cent
- Yukon generation capacity
- About 160 megawatts
- Mayo facility repair estimate
- $400-million
What people are saying
We cannot afford to make these investments on our own, and neither can our ratepayers.
It would be unreasonable to expect a small northern population that’s half the size of Sault Ste. Marie to shoulder those full costs on their own.
We’ve received, I would say, encouraging feedback.
If you know something was built in the 1950s, you shouldn’t be surprised that in 2026 it’s getting to the end of its life.