Hydro-Qubec and Kahnaw:ke strike historic deal to co-own New York transmission line

In a deal described by each party as historic,Hydro-Qubec andKahnaw:keare now co-owners of a transmission line that will carry power from Montreal's South Shore to New York City.

The agreement was formally signed byKahsennenhawe Sky-Deer, Ohn:ton :iente ne Ratitsnhaienhs (Grand Chief) of theKanien'keh:ka community south of Montreal, Hydro-Qubec president and CEO Michael Sabia andIan Lafrenire, the minister responsible for relations with the First Nations and the Inuit, on Thursday.

The partnership is set for 40 years.

The transmission line project, which carries a price tag of $1.13 billion,is expected to be operational in 2026 and allow1,250 megawatts to be exported to New York City from the Crown corporation's Hertel post in La Prairie, Que.

Sky-Deer said the agreement will generate revenue for Kahnaw:ke and is a testament of her community's "resilience."

"We know that our history with hydro wasn't always a rosy one and nevertheless we were able to overcome some of that history and find a way forward," Sky-Deer said, who credited her predecessor,JosephTokwirohNorton, for initiating talks with the utility about this project.

"When Hydro-Qubec had informed us that they were going to put out a bid to transmit the 1,250 megawatts of electricity to New York, we jumped on the opportunity to say we want to be partners."

According to a statement from Hydro-Qubec, this is the first time the utility has "struck an agreement with a third party and an Indigenous community."

The deal givesKahnaw:ke a 10 per cent stake in the 58-kilometre portion of the line that runs through Quebec, which has an estimated value of $345 million. Kahnaw:ke can also purchase up to 49 per cent an option its council will evaluate in the coming months.

The Mohawk Council of Kahnaw:ke said that portion of the transmission line will run overuncededKanien'keh:ka land.

"This is a new way of working with Indigenous communities across Quebec to build a sustainable future," Sabia said. "It's based on economic reconciliation."

Hydro-Qubec is also donating $10 million to the Kanien'keh:ka community to help with the construction of its new cultural and arts centre. The Quebec government has put $11 million into the project.