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The deal follows a 25-year war over flood compensation that included attempts to destroy the utility's environmental reputation in key US markets.
At a ceremony, three Manitoba cabinet ministers announced a 15-month plan to implement the 1977 Northern Flood Agreement.
Manitoba Hydro will spend about $4 million to hire Pimicikamak Cree Nation members to clean up drowned trees that have accumulated in the forebay of the Jenpeg generating station.
Four other First Nations affected by 1970s dam construction and river diversion signed agreements that included lump sum payments.
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