Indian Time - A Voice from the Eastern Door

Mohawk Council of Akwesasne held an informational presentation and discussion on Thursday, September 7th 2017 at 6 pm in the Kawehnoke Recreation Center. The presentation was in regards to the new proposal that has been offered to Mohawk Council of Akwesasne, by Hydro One. Hydro One Company has offered to sell its shares to Ontario First Nations, because the Government of Ontario has broadened the ownership of Hydro One, a utility owning the majority of electricity distribution and transmission infrastructure in the Province.

The proposal was made and offered to The Chiefs of Ontario, which has an advocacy forum and a secretariat for collective decision-making, action and advocacy for the 133 First Nation communities located within Ontario.

- October 2015. The Chiefs-in-Assembly authorized the Chiefs committee on Energy (CCE) to negotiate an agreement in principle for the purchase of common shares in Hydro One limited.

- June 2016. The Chiefs-in-Assembly approved the terms of the agreement in principle.

- May 2017. The Chiefs-in-Assembly provided approval to put in place the holding and initial equity model to complete the transaction. Discussions on amending the equity model began at AOCC, June 2017.

Key Financial Terms

Number of Shares - 14.87 million representing approx. 2.5% of Hydro One Limited

Purchase price/Share - $18.00/share (approx. 20% to 25% discount to market place)\

Total Purchase Price - $286 million

Loan Amount - $268 million (fully financed by Province – no cash investment required)

Loan Term - 25 years

Loan Interest Rate - Province’s borrowing rate + 0.15%

Market Value

To Loan Covenant - 150% fixed; currently approximately 133%

Seed Capital for Investment LP - $45 million to be invested for long term wealth creation

Outside Closing Date - No later than December 29, 2017 – targeting earlier date

Participation - 80% of the 133 Ontario First Nation need to sign as Partners in order for the deal to be accepted (106)

The Chiefs Committee on Energy/Hydro One Shares (CCE) recommends that all First Nations become partners in the Ontario First Nations Sovereign Wealth LP (OFN Sovereign Wealth LP).

The OFN Sovereign Wealth LP opportunity is beneficial for the following reasons:

- No cash investment is required by First Nation to participate

- There is no First Nation liability for repayment of the loan

- The transaction will not derogate from rights to pursue past grievances against former Ontario Hydro, Hydro One, OPG, OEF Corp, and Province

- Based on the Wealth Creation Mandate discussed below, this transaction can provide long-term wealth creation for future generation of First Nations.

Once the community has been informed of the proposal and any information that comes with it, the Mohawk Council of Akwesasne would like input and feedback from the community in regards to the proposal. There are future presentations coming up for those that were not able to make the presentation. Your feedback is important.