Oct 13 - McClatchy-Tribune Regional News - Lori Shull Watertown Daily Times, N.Y.

The St. Regis Mohawk Tribe and National Grid have agreed to a tentative contract establishing tribal control over electric distribution on the reservation and outlining fees should the tribe choose to terminate service.

The franchise agreement, which will be presented to residents this month, has been under negotiation for three years.

"Basically, the tribe is on a quest for self-sufficiency," said David T. Staddon, public information director for the tribe. "Right now, the tribe will control distribution within the community."

Under the agreement, National Grid will pay approximately $70,000 a year for the right to use utility poles, lines and equipment on the reservation.

"In many ways, it's not that much different from the franchise agreements of other municipalities in upstate New York," National Grid spokesman Stephen F. Brady said. "It sort of puts into one place all the things we've been doing all along."

The agreement gives National Grid the right to expect termination payments, as it would under contracts with other customers, in case the tribe decides to end the partnership. Those payments include exit and disconnection fees.

Exit fees are how National Grid is reimbursed for investments that have not yet been returned at the time of termination. The tribe's exit fee was estimated to be $4.1 million several months ago, but that fee already is outdated. It would be recalculated if the tribe opts to leave National Grid.

The sovereignty of the St. Regis Mohawk Tribe meant that the rights and responsibilities outlined in the contract, which are standard for other customers across the United States, had to be negotiated. The previous agreement, signed in 1949, had no arrangements for either right of way payments or disconnection fees.

"There are some nuances that have to be acceptable to our regulators, but also to the tribe and the Bureau of Indian Affairs," Mr. Brady said. "The agreement either settles issues or sets up a framework for dealing with issues in the future."

If the tribe decides to end National Grid service, the agreement says, the company may help it set up its own electric company, including job training and help with maintenance, Mr. Brady said.

"This agreement will make sure that community members and businesses receive electrical service in a timely manner just like all the other National Grid customers," Tribal Chief Barbara A. Lazore said in a statement. "This is an improvement in our relationship with the company that has provided electrical service to our community for almost 60 years."

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