Yukon Energy Corp. v. Utilities Board (Yukon Terr.), (1998) 118 B.C.A.C. 305 (YukCA)

JudgeDonald, J.A.
CourtCourt of Appeal (Yukon Territory)
Case DateDecember 03, 1998
JurisdictionYukon
Citations(1998), 118 B.C.A.C. 305 (YukCA)

Yukon Energy v. Utilities Bd. (1998), 118 B.C.A.C. 305 (YukCA);

   192 W.A.C. 305

MLB headnote and full text

Temp. Cite: [1999] B.C.A.C. TBEd. FE.011

Yukon Energy Corporation (applicant/appellant) v. Yukon Utilities Board (respondent/respondent)

(98-YU403)

Indexed As: Yukon Energy Corp. v. Utilities Board (Yukon Terr.)

Yukon Court of Appeal

Donald, J.A.

December 22, 1998.

Summary:

Anvil operated a mine which consumed about 40 percent of the total electricity generated by the utility. When the mine was not operating, the Yukon Utilities Board generally allowed rate increases of up to 30 percent as against all other utility consumers in order to accommo­date the shortfall. The mine closed for a period of months in 1997. Anvil agreed to re-open the mine pursuant to a tri-partite agreement between it, the utility and the Yukon government. The mine re-opened in August 1997, then closed in January, 1998, leaving $3.2 million owing the utility. In setting the final electricity rates for 1997, the Board refused to allow the utility to recover this debt from its other customers. The utility applied for leave to appeal the final setting of electricity rates for 1997.

The Yukon Court of Appeal, per Donald, J.A., granted the utility leave to appeal respecting whether the Board applied the wrong test in determining whether to allow the Anvil bad debt as an expense in setting electricity rates for 1997.

Public Utilities - Topic 4665

Public utility commissions - Regulation - Rates - Considerations in fixing rates - [See Public Utilities - Topic 4750 ].

Public Utilities - Topic 4750

Public utility commissions - Judicial review - Leave to appeal - Grounds - Anvil's mine consumed 40 percent of a utility's electricity - During non-operation, the Utilities Board allowed rate increases against all other consumers to accommo­date the shortfall - After a short closure in 1997, Anvil re-opened, pursuant to an agreement between it, the utility and the government - The re-opening lasted only four months, leaving a $3.2 million debt to the utility - In setting 1997 electricity rates, the Board refused to allow the utility to recover this debt from its other cus­tom­ers - The Yukon Court of Appeal, per Donald, J.A., granted the utility leave to appeal respecting whether the Board applied the wrong test in deter­mining whether to allow the bad debt as an expense in setting 1997 electrical rates.

Counsel:

P.J. Landry, for the appellant;

T.S. Preston, Q.C., for the respondent, Yukon Utilities Board;

D.O. Sabey, Q.C., for the respondent, Yukon Electrical Company Limited.

This application was heard in Chambers before Donald, J.A., of the Yukon Court of Appeal at Vancouver, British Col­umbia on December 3, 1998. The decision of Donald, J.A., was delivered on December 22, 1998.

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