Ontario Power Generation

OPG News Release, July 11, 2006

July 11, 2006

ONTARIO POWER GENERATION PROCEEDS TO NEXT PHASE OF LOWER MATTAGAMI PROJECT

[Toronto]: Ontario Power Generation (OPG) is pleased to announce that it is proceeding with the definition phase for a project that would add about 450 MW of clean, renewable hydroelectric power to Ontario's electricity system. The project involves replacement of Smoky Falls Generating Station (G.S.) and the expansion of Little Long G.S., Harmon G.S. and Kipling G.S. on the Lower Mattagami River north of Timmins. In addition to the electricity that will be provided, new development on the Lower Mattagami offers the potential for a commercial relationship with First Nations. OPG's announcement is a follow-up to direction that was received from the Province of Ontario to proceed with the next phase of the project.

Speaking about the project, Minister of Energy, Dwight Duncan stated: "This is an important step forward in developing 450 MW of clean renewable hydroelectric power. Ontario needs new generation and the Lower Mattagami offers the additional benefit of the potential for a commercial relationship with First Nations." In giving this direction, the Province supports the requirements of the OPG Board of Directors that discussions continue with First Nations regarding a commercial relationship, that conditions be put in place for signing of a Power Purchase Agreement, and that competitive proposals are solicited for the design and construction of the project.

OPG's Executive Vice President, Hydro, John Murphy said, "We appreciate the support of our shareholder. This project is consistent with our mandate to expand hydroelectric generating capacity in the province. Discussions with the First Nations and consultation with community stakeholders will continue as the project enters this new phase. We are pleased that this early phase of the project is moving forward."

OPG received Environmental Assessment (EA) approvals to proceed with the Lower Mattagami Project and will ensure that, as the project proceeds, all terms and conditions of the EA approval will be met.

Ontario Power Generation Inc. is an Ontario-based electricity generation company whose principal business is the generation and sale of electricity in Ontario. Our focus is on the efficient production and sale of electricity from our generation assets, while operating in a safe, open and environmentally responsible manner.

For more information contact:
Ontario Power Generation Media Relations
(416) 592-4008 or 1-877-592-4008