Statement from Minister Laking on affordability challenges and the need for federal support on energy projects

Minister of Energy, Mines and Resources Ted Laking has issued the following statement:

"On Tuesday, I stood before the Standing Committee on Indigenous and Northern Affairs on Arctic Affordability to deliver remarks on behalf of Yukoners.

"I began with a simple message. The Yukon is approaching a point where the cost of living is threatening our ability to retain families, attract workers and grow our economy. In September, inflation in Whitehorse reached 6.1 per cent, nearly double the national average of 3.1 per cent. On top of rising grocery, housing and transportation costs, Yukon families face electricity rate increases totalling 34 per cent between 2025 and 2027.

"Heating your home is not a choice when temperatures reach minus 40. At some point, people are forced to make difficult decisions. The challenge of affordability in the Yukon is directly tied to our electricity system.

"We are not connected to any Canadian electricity grid. We must generate our own power, maintain our own infrastructure and meet enormous and growing winter demand. The costs are extraordinary and they are shared by a relatively small number of ratepayers.

"In southern Canada, the cost of a major electricity investment can be spread across millions of customers. In the Yukon, those same kinds of investments must be paid for by just 24,000 ratepayers. Right now, for an average household, the 34 per cent rate increase facing Yukon families could mean an extra $235 per month. 

"I wanted the Committee to understand what is driving those increases. They are the cost of keeping aging infrastructure safe, replacing equipment that has reached the end of its useful life and building the generation capacity needed to keep the lights on. We must make these investments. In a Yukon winter, electricity reliability is not a convenience – it is a matter of public safety.

"Last December, when temperatures plunged to approximately minus 45 degrees, our electricity system came dangerously close to rolling blackouts. Industrial customers had to disconnect from the grid and generate their own electricity to help keep the system stable.

"I told the Committee that we need federal help with the costs Yukoners are already facing. We need federal help to prevent the next wave of necessary infrastructure investments from making an already difficult situation even worse. The 34 per cent increase I described is the cost of investments we have already had to make.

"Our assessment of the Yukon's electricity system shows that we are facing more than a billion dollars in additional infrastructure requirements over the coming years. Without significant federal investment, Yukoners could face another 53 per cent increase on top of what families are already being asked to absorb. For the average family, that would mean another $2,100 annually. 

"We have looked carefully at what the Yukon can reasonably contribute. The reality is that we cannot afford to make these investments on our own and neither can our ratepayers. Without sufficient electricity, we face difficult decisions about whether we can connect new housing developments, support growing businesses or provide the power required for major industrial projects. 

"We are approaching a point where a shortage of electricity could dictate whether the Yukon is able to grow at all. Addressing the Yukon's electricity challenges is in the national interest.

"Reliable and affordable electricity is essential to attracting families, workers, investment and developing our resources and supporting a stronger Canadian presence in the North.

“Those national objectives require infrastructure, and it would be unreasonable to expect a small northern population that is half the size of Sault St. Marie to shoulder the full costs.

"The Yukon is a place of extraordinary opportunity, but opportunity means very little if families cannot afford to live there, businesses cannot afford to operate there and industries cannot access the infrastructure they need to grow.

"We cannot build a stronger Canadian north by pricing northern Canadians out of it.

"We have brought these concerns to the federal government and have had encouraging and positive discussions to date. 

"Yukoners cannot afford to carry these costs alone. We need the federal government to help address the increases families are facing today and prevent even greater increases tomorrow."