OPG reports 2021 third quarter financial results

Toronto, ON – Ontario Power Generation Inc. (OPG or Company) today reported its financial and operating results for the third quarter of 2021, with net income attributable to the Shareholder of $426 million, compared to $386 million for the same period last year.

Third quarter highlights include:

Darlington Refurbishment

“Refurbishment of Darlington’s Unit 3 continues to progress well, and the team is moving into reassembling the Unit,” said Ken Hartwick, OPG President and CEO. “Leveraging lessons learned from the first Unit refurbishment at Darlington, disassembly of Unit 3 was completed safely and with quality. This is thanks to the outstanding planning, collaboration and execution by the team while safely working under both COVID-19 restrictions and hot summer conditions.”

Launching the first-ever OPG Reconciliation Action Plan and recognition by the Canadian Council for Aboriginal Business

Building on the Company’s long-standing commitment to Indigenous communities,
OPG recently announced its Reconciliation Action Plan. The action plan will serve as the Company’s roadmap for how it intends to continue to engage and work with Indigenous communities, businesses and organizations to advance reconciliation. OPG has set a goal of growing the Company’s existing economic impact for Indigenous communities and businesses to $1 billion over the next 10 years through ongoing operations, projects and initiatives. During the quarter, OPG was also honoured with the Gold designation through the Canadian Council for Aboriginal Business’ Progressive Aboriginal Relations (PAR) program.

“PAR Gold companies demonstrate sustained leadership in Indigenous relations and commitment to working with Aboriginal businesses and communities through innovative programs and engagement,” said Hartwick. “Our Reconciliation Action Plan is the next step on our journey, which outlines our overall goals and supporting actions to enhance Indigenous procurement, increase Indigenous representation across all levels of our company, strengthen environmental stewardship, and improve awareness and understanding of Indigenous culture, history, and perspectives within OPG.”

OPG’s leadership commitment to equity, diversity and inclusion (ED&I)

“We recently welcomed three new members to OPG’s Board of Directors,” said Hartwick. “Each of these members brings to the Board extraordinary talent and experience and adds to the Board’s expertise in OPG’s most critical operational and strategic areas.
We are well served by having a Board that is diverse in so many areas.”

With the new additions, women comprise 60 per cent of OPG’s independent board members, making OPG’s Board of Directors one of the most gender diverse boards in the industry.

Net Income attributable to the Shareholder

The increase in net income attributable to the Shareholder for the third quarter of 2021, compared to the same period in 2020, was partly due to revenue from higher electricity generation from the Regulated – Nuclear Generation business segment.

On August 6, 2021, the Ontario Energy Board (OEB) approved a settlement agreement on most of the issues in OPG’s application for new regulated prices for nuclear electricity generation for the 2022-2026 period. As part of the settlement agreement, OPG will be returning $47 million to customers due to the net favourable impact on electricity revenue net of operations, maintenance and administration (OM&A) expenses arising from the Company’s pandemic response over 2020 and 2021. The recognition of this transaction took place during the quarter and partially offset the increase in net income. The OEB’s decision on the unsettled issues in the application is expected in the fourth quarter of 2021 and the resulting new nuclear regulated prices will be effective January 1, 2022. The base regulated price for OPG’s hydroelectric electricity generation for the 2022-2026 period will be equal to the current approved 2021 regulated price.

Net income attributable to the Shareholder for the third quarter of 2021 also increased due to lower income tax expense primarily due to a higher amount of income tax expense deferred as regulatory assets compared to the same quarter in 2020.

About OPG

As a global climate change leader and the largest, most diverse electricity generator in the province of Ontario, OPG and its family of companies are helping lead the charge to a post-carbon economy.

Ontario Power Generation Inc.’s unaudited interim consolidated financial statements and Management’s Discussion and Analysis as at and for the three and nine month periods ended September 30, 2021, can be accessed on OPG’s web site (www.opg.com), the Canadian Securities Administrators’ web site (www.sedar.com), or can be requested from the Company.