The joint position paper between the Yukon government and ATCO was based on a meeting that took place May 12 in Calgary. (CBC)The Yukon government was in talks with Alberta-based ATCO to share ownership of the Yukon Energy Corp., according to a document leaked to the media by the ex-chair of the public power utility's board.

A seven-page joint position paper lays out information arising from a May 12 meeting between the Yukon government and the ATCO Group of Companies in Calgary.

ATCO owns the Yukon Electrical Company Ltd., which distributes Yukon Energy-generated electricity to customers across the territory.

The confidential draft document calls for ATCO with the territorial government to share 50/50 ownership of a new entity to be called OPCO.

Companies to keep owning existing assets

"OPCO would be a strong, capable Yukon-based entity that has full responsibility to manage and operate all electric utility assets for both [Yukon Energy] and [Yukon Electrical Company Ltd.], and to undertake resource planning, project development, regulatory and customer service functions," the position paper reads in part.

Both Yukon Energy and Yukon Electrical would continue to own their existing assets, while OPCO would manage and operate those assets, according to the position paper. New assets in OPCO would be funded 50/50.

The Yukon government would pick the chair of the new entity's board of directors, while ATCO would select one of its own officials as president.

ATCO is seeking a term of at least five years for the president of OPCO, although the position paper states that Premier Dennis Fentie told company CEO Nancy Southern "that longer would be better."

The position paper also details ATCO's request for additional funding, which was countered by the government's request that ATCO make Whitehorse a northern base for the company.

The government suggested that the Alberta company invest in water infrastructure, waste management, and housing.

The position paper concludes with a list of issues that require further clarity, such as addressing First Nations' issues under the proposed merger.

Fentie not an 'emperor': opposition leader

Opposition politicians responded soon after the document came out, calling for everything from a public inquiry to Fentie's resignation as premier.

"This premier has to go now. He's become a rogue premier," NDP leader Todd Hardy told CBC News on Thursday. "Frankly, it's really difficult to understand why he is even doing this.

"What we got here is the premier basically committing probably the single biggest betrayal of the Yukon people in the Yukon territory."

Liberal Opposition Leader Arthur Mitchell called for a public inquiry to uncover the truth about the government's talks with ATCO.

"This goes far beyond 'rationalization' or any of the other doublespeak that the premier has been using," Mitchell said. "It's clear that premier Fentie has misled the public.

"I believe that the premier has completely exceeded his authority. He was elected as premier, not emperor."

Fentie has adamantly denied allegations of talks to privatize Yukon Energy, although he did tell CBC News in an interview that talks were ongoing with ATCO to "rationalize" the two power companies.

Neither Fentie nor ATCO have returned calls from CBC News since Wednesday.

'Back-door privatization,' former chairman charges

Willard Phelps, seen at a rally Monday against privatizing Yukon Energy, says ATCO would gain control of the territory's energy resources under the proposal worked out between ATCO and the Yukon government. (CBC)The document was released to Whitehorse media by Willard Phelps, who resigned as Yukon Energy's chairman on June 8, citing government interference in the board's operations.

"I've called this 'back-door privatization,' the way in which ATCO would achieve ownership of 50 per cent of the assets, nominate the president of the operating company, and I've said that sure won't be Mr. Morrison," Phelps told CBC News on Wednesday, referring to current Yukon Energy president David Morrison.

Phelps accused Fentie of privatizing Yukon Energy while leaving Yukoners and the utility's workers in the dark. He's called for an inquiry into Fentie's handling of the privatization issue.

"I simply want to get the truth out," he said.

"I think the best way is, as I've said, through an inquiry that would look into not just what's happened at ATCO, but what kind the interference he's done, and what the history is of our disagreements regarding the role of the board, governance, and issues such as that. And I've got nothing to hide, and I hope he doesn't."

Three other directors quit Yukon Energy's board, along with Phelps, when they learned of the government talks. They accused Fentie of meddling in a Crown corporation that is supposed to be arm's-length from government.