OPG reports 2023 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 2023, with net income attributable to the Shareholder of $444 million, compared to $484 million for the same period last year.

Darlington’s Small Modular Reactors project progresses

OPG continues to advance development of Small Modular Reactors (SMRs) at the Darlington New Nuclear site. The project will generate much-needed clean electricity while being a catalyst to Ontario and Canada’s economies.

“A recent Conference Board of Canada report shows that OPG’s construction of four SMRs at the Darlington New Nuclear site will significantly benefit Ontario and Canada’s economies, creating thousands of jobs and increasing Gross Domestic Product,” said OPG President and CEO Ken Hartwick. “While we progress site preparation work for the project, we are also working with other provinces and international jurisdictions, including Saskatchewan and Poland, to create further opportunities for Ontario’s nuclear supply chain.”

Hydroelectric

OPG’s hydroelectric operations continue to provide much needed baseload generation in Ontario. At the same time, OPG is working to optimize its existing hydroelectric assets, as well as to advance potential new projects.

“OPG’s hydroelectric fleet continues to perform well, providing Ontarians more than 20 per cent of the clean, reliable electricity they need every day,” said Hartwick. “We continue to look at ways we can increase generation from existing assets, and to engage Indigenous communities to unlock new hydroelectric potential in northern Ontario, to help meet the province’s growing electricity demand.”

Net Income attributable to the Shareholder

Net income attributable to the Shareholder decreased by $40 million for the three months ended September 30, 2023, compared to the same period in 2022. The decrease was primarily attributable to lower earnings from the Regulated – Hydroelectric Generation business segment and from the Company’s operations in the United States associated with the higher wholesale electricity market prices in 2022. The decrease was partially offset by lower net interest expense.

For 2023, OPG’s net income continues to be impacted by higher compensation costs under OPG’s collective agreements as a result of the Ontario Superior Court’s decision, which found unconstitutional the Protecting a Sustainable Public Sector for Future Generations Act, 2019 that set limits on compensation increases for employees in the Ontario public sector. Further information can be found in the Management Discussion and Analysis as at and for the three and nine month periods ended September 30, 2023, section, Significant Developments under the heading, Financial Strength.

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 Sept. 30, 2023, can be accessed on OPG’s web site (www.opg.com), the Canadian Securities Administrators’ web site (www.sedarplus.com), or can be requested from the Company.