OPG reports 2022 financial results

Toronto, ON – Ontario Power Generation Inc. (OPG or the Company) today reported its financial and operating results for 2022, with net income attributable to the Shareholder of $1,636 million, compared to $1,325 million for 2021.

Strong operational performance across OPG’s fleet

“We achieved another excellent year of operational performance across our fleet in 2022. Hydroelectric generation continues to be a reliable source of clean energy for Ontario, accounting for over a third of OPG’s electricity production,” said Ken Hartwick, OPG President and CEO. “Our nuclear fleet also performed very well. At the Pickering Nuclear Generating Station, all six units supplied energy to Ontario’s grid for a station record of more than 100 consecutive days without any one unit being taken out of service for maintenance or repairs. The Darlington Nuclear Generating Station received its sixth consecutive “excellence” rating from the World Association of Nuclear Operators. This means that, for 12 years, Darlington has performed to exceptionally high standards of safety, operational performance and equipment reliability – an accomplishment that is a testament to our focus on safety and execution.”

Demonstrating project excellence to support Ontario’s future electricity demands

OPG made significant progress on its critical nuclear projects in 2022. Refurbishment of the Darlington Nuclear Generating Station (Darlington GS) passed the mid-way point of execution and the last of the four units, Unit 4, is on track to be completed in 2026. Refuelling, one of the first steps towards restarting the reactor, was completed on Unit 3, which is the second Darlington GS unit to be refurbished. The unit is expected to be back in service in the second half of 2023, ahead of the originally planned schedule. On Unit 1, the third unit to undergo a mid-life overhaul, disassembly is well underway.

Supported by $970 million in financing from the Canada Infrastructure Bank, in the fall of 2022, site preparation commenced at the Darlington New Nuclear Project (DNNP) and the license to construct application was submitted to the Canadian Nuclear Safety Commission.

In January 2023, OPG announced a partnership with GE-Hitachi Nuclear Energy, SNC-Lavalin Group, and Aecon Group to construct the first planned small modular reactor (SMR) at the DNNP site. OPG, as the license holder, will maintain overall responsibility for the project, including operator training, commissioning, Indigenous engagement, stakeholder outreach and oversight.

“This innovative contracting approach brings together proven partners to help us construct a SMR at the Darlington site,” said Hartwick. “Working with these companies, OPG is leveraging decades of nuclear energy and large project experience to deliver much-needed new electricity generation to Ontarians to help meet the demands of increased electrification and a growing economy.”

“Our safe, on-time work on the Darlington Refurbishment project demonstrates that we are prepared to construct the next generation of nuclear power – an SMR at the Darlington site – to help power the future of Ontario’s demand,” said Hartwick. “Both projects are crucial to Ontario’s clean energy future, creating jobs and supporting electrification.”

“The Pickering station has never been stronger, in terms of both safety and performance,” said Hartwick. “Refurbishment of this safe, clean energy workhorse could provide Ontarians another three decades of clean, reliable power to help manage rising demand related to electrification and a strong economy.”

This was also a major milestone year for the 100-year old Sir Adam Beck I Hydroelectric Generating Station in Niagara Falls, Ontario. In 2022, the first full unit replacements in the station's history were completed, replacing two historic generating units first taken out of service in 2009. These modern, larger units will make more efficient use of the available water, providing additional incremental, flexible generating capacity. The project was completed on time and under budget.

“The Sir Adam Beck I Generating Station is a testament to the durability and longevity of
well-maintained hydroelectric generation assets,” said Hartwick. “All 10 units are now operating at this flagship OPG station, setting it up to provide decades more clean power for Ontarians.”

Net income attributable to the Shareholder

The increase in net income attributable to the Shareholder for 2022, compared to 2021, was primarily attributable to the Regulated – Nuclear Generation business segment, driven by the net impact of the new regulated prices for OPG’s nuclear electricity generation resulting from the decisions issued by the Ontario Energy Board in the second half of 2021, partially offset by the impact of lower electricity generation due to the commencement of the refurbishment of Darlington GS Unit 1 in February 2022. The increase was also driven by higher earnings from the Contracted Hydroelectric and Other Generation business segment, primarily due to higher wholesale electricity market prices from operations in the United States, and the sale of a non-core real estate site during the fourth quarter of 2022.

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 audited consolidated financial statements and Management’s Discussion and Analysis as at and for the year ended December 31, 2022, 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.