Ontario Power Generation

OPG News Release, November 18, 2005

November 18, 2005

ONTARIO POWER GENERATION HAS FUNDS SET ASIDE FOR DECOMMISSIONING AND NUCLEAR WASTE FUEL MANAGEMENT

The present net value of OPG's future liability for nuclear waste has been calculated to be $8.5 billion. OPG has $6.6 billion set aside and continues to add over $400 million per year.

[Toronto]: Ontario Power Generation (OPG) sets aside in segregated funds about $400 million per year to ensure the necessary funds to cover the future costs for decommissioning nuclear plants and for nuclear waste fuel management. At the end of September 2005, the net asset value of the segregated funds was approximately $6.6 billion.

As the generator of nuclear wastes, OPG believes that having the necessary decommissioning and nuclear fuel waste management funds collected and set aside today takes the burden off future generations.

Accordingly, based on the Ontario Nuclear Funds Agreement (ONFA) between OPG and the Province, OPG contributes to a Decommissioning Fund and a Used Fuel Fund. Both of these funds are held by an independent third party custodian and are segregated from the rest of OPG's assets.

In determining the long-term costs for decommissioning its nuclear generating stations and disposing of its nuclear waste, OPG has drawn on considerable international experience and has employed recognized independent third party consultants to validate assumptions and estimates. OPG regularly submits the evaluations to the regulator, the Canadian Nuclear Safety Commission, (CNSC) for its review and acceptance.

OPG remains committed to fully funding both funds.

"Waste management is an important responsibility of the nuclear industry and segregated funds ensure that the money necessary to safely manage these wastes is set aside," said Jim Hankinson, OPG President and CEO. "These arrangements will ensure the funds will continue to grow over the next 50 to 80 years to fully meet our responsibilities."

Ontario Power Generation Inc. is an Ontario-based 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.

The Ontario Nuclear Funds Agreement is available on OPG's website by going to:

• ONFA Second Amending Agreement
• ONFA Amending Agreement
• ONFA Final

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

NOTE:

The federal Nuclear Fuel Waste Act mandated the establishment of a Nuclear Waste Management Organization (NWMO). On November 3, 2005, the Nuclear Waste Management Organization issued its final report and recommendations to the federal government on the long-term management of used nuclear fuel.

In accordance with the federal Nuclear Fuel Waste Act, about $800 million of the segregated funds is committed to a trust fund established under the Nuclear Fuel Waste Act.

In accordance with the Ontario Nuclear Funds Agreement, the Ontario Electricity Financial Corporation (OEFC), the legal continuation of the old Ontario Hydro, also has commitments to the segregated funds which are based on the commitments the Ontario Electricity Financial Corporation inherited from the old Ontario Hydro.