Recently CBC and Yukon News both reported on YEC’s proposal for Wareham spillway and the First Nation of Na-Cho Nyäk Dun’s concern about project splitting.
YEC’s project splitting and providing conflicting information to different regulators and to the First Nation of Na-Cho Nyäk Dun is nothing new. Similar issues were a core part of the January 2026 appeal against Yukon Energy and the Yukon Utilities Board concerning customers being charged for unpermitted diesel generators. Then as now, YEC cited a last minute rush as the rationale for project splitting, thereby compromising the treaty mandated assessment process.
In Yukon Energy’s own words, concerning the installation of rental diesel in Mayo in 2023:
“Yukon Energy initially decided to assess the Mayo Secondary site for 4.9 MW of capacity, so that the assessment could be completed by the Mayo Designated Office of YESAA and an Air Emissions Permit could be issued as soon as possible without the need for an Executive Committee level screening.” [YEC Reconsideration Evidence, p.37, PDF p.39]
and
“After the initial permit was issued for 4.9 MW of permitted operating capacity at Mayo Secondary, Yukon Energy began work to pursue further assessment and permitting in order to expand the site’s permitted capacity by another 4.1 MW, from 4.9 MW to 9.0 MW, through the Mayo Secondary Thermal Capacity Expansion Project (2024-0177) .” [YEC Reconsideration Evidence, p.39, PDF p.41]
This description of how and why YEC split the project was provided to the Yukon Utilities Board by YEC on March 16, 2026 as part of the proceeding currently in front of the Yukon Utilities Board concerning the results of the January 2026 appeal. The above quotes are from pages 37 and 39 of the document linked above, and the splitting is also outlined on p. 29 (and included at the bottom of this page)
Aside from splitting the project to avoid the appropriate assessment level, YEC also provided conflicting information to different parties, and gave a potentially misleading response to a direct concern of FNNND.
In the YESAB assessment for the first 4.9 MW, FNNND asked for confirmation that the installation “will never be run to exceed 4.9 MW.”
Here is an excerpt of the FNNND submission to YESAB, 25-Aug, 2023:
“Generation Capacity Clarity: Through response to an information request, it is understood that while the total generation capacity of the generators to be installed will be well over 5MW, they will never be run to exceed 4.9 MW. FNNND expects this output limitation to be binding through regulatory requirements. The context of thorough energy planning within a timeframe is necessary here to ensure we do not approach a situation where more than 4.9MW is required from this backup system without effects having been assessed and regulated at that scale beforehand.”
Yukon Energy fully expects that the requested maximum operating capacity of 4.9 MW will be prescribed and enforceable under the Air Emissions Permit that is issued for the project.
What YEC did not tell FNNND was that it was simultaneously presenting the same project to the Utilities Board at 7.2 MW, rather than treating the 4.9 MW permit limit as the actual project capacity. Reading closely, YEC told FNNND the permit would be for 4.9 MW. It did not say it would respect that permitted limit, or mention the higher 7.2 MW capacity presented to the Utilities Board.
Should the First Nation expect YEC to honor its permits and agreements? Well… maybe?
To be clear, in dodging the question, YEC did not quite provide false information to FNNND. The permit was for 4.9 MW, but YEC failed to mention that it was not letting the permit or the capacity presented to the First Nation limit the actual capacity of the project.
Was it a 4.9 MW project, a 7.2 MW project or was it always a 9 MW project? YEC’s answer depends on who asks and when.
Put another way, the same Mayo rental diesel project appears to have been described three different ways, depending on the forum:
4.9 MW – This was the capacity of the project as presented in 2023 to YESAB, the First Nation of Na-Cho Nyäk Dun, Mayo, the Department of Environment and the general public. This capacity limit was not used anywhere outside of the initial permitting process. (YESAB 2023-0090) In this process, YEC did not mention the 7.2 MW capacity simultaneously claimed in the GRA. Nor did it disclose that the intended project was 9 MW, with only 4.9 MW being assessed initially so the project could proceed without an Executive Committee screening at the 5 MW threshold, a sequence YEC has now confirmed in 2026.
7.2 MW – This was the capacity presented to the Board in the 2023-24 General Rate Application proceeding, while YEC was still pursuing the 4.9 MW permit. Customers were unlawfully charged for the unpermitted excess capacity, confirmed to be unlawful by the appeal.
9.0 MW – This full capacity was installed in 2023 and permitted as two projects, 4.9 MW in 2023 and 4.1 MW in 2024-25. In 2026 YEC has finally confirmed that this was always the intended capacity of the project.
Links / Sources
CBC interview concerning Wareham spillway and emergency work:
https://www.cbc.ca/listen/live-radio/1-206-midday-cafe/clip/16216696-yukon-energy-ceo-says-community-safety-dictates-emergency
Yukon News article concerning Na-Cho Nyäk Dun’s project splitting concern:
https://yukon-news.com/2026/05/26/na-cho-nyak-dun-says-yukon-energy-split-dam-project-to-bypass-treaty-review/
CBC article about the January 2026 appeal:
https://www.cbc.ca/news/canada/north/yukon-energy-rate-appeal-9.7064266
YEC Reconsideration Evidence downloadable from Utilities Board website, including p.37 / PDF p.39 and p.39 / PDF p.41:
https://yukonutilitiesboard.yk.ca/pdf/Reconsideration_of_YEC_2023-24_GRA/YEC_Additional_Evidence_-_Mar_16_2026_-_FINAL.pdf
YESAB 2023-0090 project page:
https://yesabregistry.ca/projects/d6b81077-a2e0-45c3-8b6b-e7a98e4caf34
YESAB 2023-0090 First Nation of Na-Cho Nyäk Dun comments:
https://yesabregistry.ca/api/uploads/925b139d-3f93-411f-9595-e5e3ae875858
YESAB 2023-0090 YEC Response to Public Comments, p.2-3 response to FNNND:
https://yesabregistry.ca/api/uploads/82d8829e-69a9-4716-8bc0-b91a1198a0b7
YEC confirms project splitting again:
“Yukon Energy’s priority was to ensure that a permit would be in place as quickly as possible to maximize its ability to rely
on as much of that new generating capacity as possible, as soon as possible. With this objective in mind, Yukon Energy decided to assess the Mayo Secondary site for 4.9 MW of capacity, so that the assessment could be completed as expeditiously as possible by YESAB’s Mayo Designated Office without triggering an Executive Committee level screening assessment, which Yukon Energy did not expect it would be possible to complete before winter 2023/24. After obtaining an initial Air Emissions Permit for Mayo Secondary, it would then be a priority for Yukon Energy to pursue subsequent assessment and permitting processes for the balance of its diesel rental capacity at that facility.“
-(from p. 29 of YEC’s Reconsideration Evidence linked above)