president's welcome

I am pleased to present the 2017 Yukon Energy Annual Report.

This was a year of highs and lows for the Corporation. On the positive side, we celebrated our 30th anniversary, marking this milestone with a series of public events. We were also honoured to become the first northern utility, and only the fifth in Canada, to receive a Sustainable Electricity Company™ designation from the Canadian Electricity Association.

However it was also a difficult year for us, after the sudden deaths of two of our employees and a third former staff member who had only recently retired. While none of the deaths occurred on the job, it does not make the loss any less tragic.

Through it all, our team of professional and dedicated employees and Board of Directors continued to work extremely hard to serve Yukoners every day. We strive for excellence in everything we do…from delivering affordable, reliable and sustainable power to attracting and retaining a skilled and engaged workforce and to our respect for the environment and for the communities and people we serve.

We hope you see these values reflected in this 2017 annual report.

Andrew Hall - President and CEO

Andrew Hall
President and CEO

In 2017, Yukon Energy staff, management, and board members were involved in an exercise to update the company's mission, values, and vision. We believe these statements better reflect our philosophy, goals and aspirations.

vision

To establish a sustainable legacy for Yukon's future

mission

To enable Yukon's prosperity with sustainable, cost-effective and reliable electricity

values

Safety

Accountability

Continuous Improvement

Teamwork

Professionalism

Good Corporate Citizenship

2017 board of directors

Kells Boland, Chair

Kells Boland, Chair

Susan Craig

Susan Craig

Joanne Fairlie

Joanne Fairlie

John Jensen

John Jensen

Cam Malloch

Cam Malloch

Clint McCuaig

Clint McCuaig

Wendy Shanks

Wendy Shanks

Curtis Shaw

Curtis Shaw

Erin Stehelin

Erin Stehelin

2017 Board of Directors members. Christian Kuntz Photography

Audit Committee

Erin Stehlin, Chair

Kells Boland

Cam Malloch

Wendy Shanks

Curtis Shaw

Human Resources and Compensation Committee

Wendy Shanks, Chair

Kells Bolland

Susan Craig

John Jensen

Clint McCuaig

Planning and Governance Committee

Kells Bolland, Chair

Erin Stehelin

Wendy Shanks

Clint McCuaig

Susan Craig

Cam Malloch

yukon energy by the numbers

1 of a few isolated grids in North America

3 hydro stations

1 backup LNG plant

4 backup diesel generating stations

2017 TOTAL GENERATION TYPE

96.8% renewable in 2017

1,100 kilometres of power lines

12,000 power poles

Longest wooden fish ladder in the world

2017 SALES

456 GWh supplied in 2017

$45.0 million in 2017 sales

133 megawatt generating capacity

our customers

Electricity Generation

Electricity Generation

2017 Generation by Month

2017 Generation by Month

92.69 megawatts, new all-time peak set on December 30, 2017

Total Power Outages

Total Power Outages

Outages per Customer

Outages per Customer

our staff

94 permanent, temporary, and term employees

66 employees received close to 2,000 hours of training in 2017

2 people completed apprenticeships

Lowell Tait
Heavy Duty Equipment Technician
Heavy Equipment and Truck and Transport Technician

Jordan Corbeil
Powerline Technician

1 person completed his apprenticeship equivalent

Dieter Brenner
Systems Control Centre Operator

6 retirements in 2017

Steve Milner
Bill Haydock
Sulem Darani
John Aldrich
Ron Kirkwood
Danny Sutherland

9.5 years is the average length of service

Long Service Recipients

long service recipients

5 Years

Michael Brandt

Dieter Brenner

Graham Cochrane

Jason Epp

Ken Hasler

Kathy Krehbiel

Luke Mahilum

Matt O'Brien

10 Years

Jeremy Germaine

Wesley Marsh

Melanie Pettefer

Travis Ritchie

Ramona Toth

15 Years

Barbara Bowen

Darryel Collins

Darcie Schroeder

30 Years

Steve Blysak

Guy Morgan

Sadly, there were three sudden (non-work-related) deaths in our Yukon Energy family. Our hearts go out to the family and friends of Justin Kolla, Rick Falbo, and Sulem Darami.

strategic priorities

2017

Achieve All Injury Frequency Rate of 1.0 or less

For 2017 Yukon Energy had an All Injury Frequency Rate of 5.1, compared to 6.1 in 2016 and 6.2 in 2015. We are trending in the right direction and striving to do better in 2018.

Achieve Motor Vehicle Accident Frequency Rate of 4 or less

For 2017 Yukon Energy had a motor vehicle accident frequency rate of 13.4, up from 5.0 in both 2015 and 2016. We are concerned about this statistic and are working with our staff to make significant improvements in 2018.

Achieve 10 or less controllable outages

We had 16 controllable outages in 2017, compared to 9 in 2016 and 16 in 2015.

Achieve a Return on Equity of 8.82 percent

Goal achieved. We expect a Return on Equity for 2017 of 9.15 percent.

Confirm funding and construction plan of Stewart Keno Transmission Line Project

Target federal funds were identified and funding applications are planned for 2018.

Complete major overhaul of our Whitehorse Hydro #4 unit on time, on budget ($4.3M)

Goal achieved. This project was completed on time and below budget.

Develop and launch updated Asset Management Program

Goal achieved.

Place order for 3rd engine to expand capacity of LNG backup power plant

Goal achieved. The engine was ordered in September 2017.

Launch Independent Power Producers Standing Offer Program in collaboration with ATCO Electric Yukon

There was a delay as we worked with the Yukon government on this program. The target is to launch the initiative in early 2019.

2018

Achieve an All Injury Rate of 1 or less

Achieve a Motor Vehicle Accident Rate of 0

Achieve 10 or fewer controllable outages

Achieve a Return on Equity of 7.35 percent

Complete LNG 3rd Engine Project on time and on budget

Complete 2018 scope of Transmission Refurbishment Project on time and on budget

Develop and implement Generation Resource Management process

Complete key deliverables for Year 1 of the Asset Management Program

Confirm path forward for addressing long-term energy capacity requirement

Develop expanded Demand Side Management Program

Submit Aishihik Relicensing YESAB application with support from the Champagne and Aishihik First Nations

key 2017 capital projects

Completed a major overhaul of our largest Whitehorse hydro unit (known as the Fourth Wheel)

Developed an updated Asset Management Program, which is allowing us to manage our assets and systems in an integrated and optimized way, and is providing a key link between operational requirements and strategic decision making.

Completed Year 1 of electrical and controls upgrades at our Aishihik hydro facility.

Placed order for 3rd engine to expand capacity of LNG backup power plant.

Finalized 2016 Resource Plan and submitted to the Yukon Utilities Board for review.

Received continued positive response to our inCharge rebate programs. In 2017 Yukoners received more than 3,600 rebates on LED lights and block heater timers. We also provided 30 smart learning thermostats to customers with central electric heating systems, and distributed 500 energy saving kits to customers. The inCharge website was translated into French.

health and safety

Safety is a part of every decision we make and every action we take

Provided more than 270 safety orientations to staff and over 100 contractors

67% of our employees participated in our corporate wellness program

Began work with the Village of Mayo to install an early warning siren in the community to alert residents in the event of a dam breach

Participated in a test of our LNG emergency response plan

There was a participation rate in 2017 of 88% among employees attending safety meetings

Provided safety education as a part of school tours at our facilities

sustainability

Key to everything we do




Presented with a Sustainable Electricity Company™ designation; only the fifth utility in Canada to receive this recognition and the first in Northern Canada

economic sustainability

stewardship and biodiversity

Migratory Birds

Major sponsor for the Celebration of Swans Festival

Salmon
Climate Change

First Nation partnerships

supporting our communities

Provided $85,000 to more than 40 community groups (money taken from profits; rates are not impacted).

Forty-five staff and board members raised more than $10,000 for the 2017 United Way Campaign. Yukon Energy was the largest business contributor this year.

Long-time supporter of the Association of Yukon Communities Sustainability Award.

Our staff volunteered at the Whitehorse Food Bank, Yukon River Trail Marathon, Yukon Energy Dempster to Dawson Solstice Run, and the Faro Sheep and Crane Festival among others

Provided scholarships to three deserving Yukoners:

Alex Hanson - $3,000
Aiden Bradley - $3,000
Sean Balsillie - $3,000

additional information