Six Nations to pursue Niagara Reinforcement Line investment

SIX NATIONS – Six Nations will be pursuing the Niagara Reinforcement Line (NRL) Bundled Solution which will see the line energized by A6N Utilities by spring 2019.

On February 20th, 2018, the Six Nations Elected Council (SNEC) approved the SNGRDC Board of Directors’ and Advisory Committee’s recommendation to pursue the business opportunity along with SNGRDC’s approach on how to address community concerns identified through Community Engagement. A total of 41 formal written submissions were received — 66 per cent contained no definitive opinion, 22 per cent were positive and 12 per cent were negative. Through Community Engagement, seven key considerations were identified and an approach to address the concerns was laid out in the NRL Path Forward. This will include a commitment to engage a third party to conduct a Peer Review of the NRL Environmental Assessment.

Six Nations of the Grand River Development Corporation (SNGRDC) will acquire a 25 per cent equity interest in the line on behalf of the Six Nations Community. This investment will be financed by SNEC through the allocation of $12.5 million received from a transfer payment agreement (TPA) related to gaming modernization in Ontario.

The funds were directed to Six Nations, “to advance economic development initiatives for Six Nations’ Community Members.” The NRL Bundled Solution fulfills the purpose of the fund by creating a long-term stream of revenue for Six Nations. It will also position SNGRDC to pursue future renewable development opportunities through a 300 MW set-aside by the Ministry of Energy. SNGRDC sought the allocation to address community concerns, identified through community engagement, related to incurring long-term debt. By entering into the investment debt-free, it will result in approximately $8.4 million in interest savings.

The debt free acquisition of 25 per cent interest in the NRL, will generate not less than

$46 million throughout the project’s life (calculated at 48 years) and is expected to retain a residual value well into the future. “Like all equity investments managed by SNGRDC, surplus profits generated through the NRL will ultimately flow to the Economic Development Trust for investment in community priorities,” said Matt Jamieson, president and CEO of SNGRDC. The Economic Development Trust, which is funded through annual distributions from SNGRDC, has invested more than $6.7 million into the Six Nations Community since 2016.

Six Nations Elected Chief Ava Hill said, “This investment is a forward step for our community because surplus profits generated from SNGRDC’s investments in renewable energy and now the NRL, are used by the Economic Development Trust to invest in community priorities such as emergency services, waterline expansion, and future housing developments.”

The full community engagement report and the NRL Path Forward, along with all motions and resolutions are posted to as a matter of historical record.

Related Posts