Hydro One unveils 50-50 First Nation equity model for large transmission projects
October 15, 2022 | By Anthony Capkun
October 15, 2022 – Along with First Nation leaders from across Ontario, Hydro One announced a new equity partnership model with First Nations on new capital transmission line projects with a value exceeding $100 million.
“For too long, First Nations have borne the impacts of infrastructure development in their traditional territories without seeing the benefits,” said Megan Telford, chief HR officer, Hydro One. “We recognize that we did not always get it right […]”.
The equity model will offer First Nations a 50% equity stake in all future large-scale capital transmission line projects.
“This equity model signals a significant shift in how Hydro One will work with First Nations,” added Telford.
“We are appreciative of the collaborative approach taken by Hydro One in establishing this historic precedent,” said Niilo Edwards, CEO, First Nations Major Projects Coalition. “It is one that should be emulated by other transmission infrastructure providers across Canada.”
The announcement follows the signing of an agreement in Spring 2022 with eight First Nations represented by Gwayakocchigewin LP (GLP) for the Waasigan Transmission Line project. As an example of the new partnership model, this agreement provides the First Nations represented by the GLP with the opportunity to invest in an equity stake in the project, explains Hydro One.
This model will also apply to the five transmission lines Hydro One is developing in southwest Ontario.
Hydro One says it has also committed to increasing its Indigenous procurement spend to 5% of all materials and services by 2026, and ensuring that 20% of its corporate donations and sponsorships support Indigenous communities.
Through its wholly owned subsidiaries, Hydro One Ltd. is Ontario’s largest electricity transmission and distribution provider, with about 1.5 million customers and $30.4 billion in assets.
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