Hydro-Québec and the Mohawk Council of Kahnawake (MCK) have confirmed their partnership in the project to export electricity to New York State.
The Kanien’kehá:ka (Mohawk) community will hold a minority interest of at least 10 per cent in the Hertel-New York interconnection line. The community’s participation will enable them to earn dividend income.
At a news conference on Thursday, Hydro-Québec President and CEO Michael Sabia spoke of a return of around 8 per cent on the community’s shares.
“The level of return is consistent with the return we ourselves earn on regulated activities. In other words, it’s around 8 to 8.2 per cent,” he explained at a news conference.
The 10 per cent stake is a minimum threshold, but the Mohawk Council of Kahnawake could take a larger stake, up to 49 per cent of the project.
Council Grand Chief Kahsennenhawe Sky-Deer said she would like the Council to take a larger stake than the minimum 10 per cent, but that the matter was still under consideration.
“We have the ability to go anywhere between 10 and 49 per cent; it’s going to depend on our risk tolerance, interest rates,” she said. “We hope that we will be able to take as much as possible and that it will benefit the community.”
Hydro-Québec and the MCK have not put a precise figure on the amount invested by the community. Sabia said that the regulated value of the project was $345 million.
Of this amount, 70 per cent is financed by debt entirely assumed by Hydro-Québec. The remaining 30 per cent represents equity. It is of this 30 per cent that the Mohawks of Kahnawake would have an interest of at least 10 per cent.
The value of the investment could therefore vary between $10 million and $50 million, depending on the size of the share they take.
This report by The Canadian Press was first published in French on April 18, 2024.