OPG reports 2022 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 2022, with net income attributable to the Shareholder of $484 million, compared to $426 million for the same period last year.

Third quarter highlights include:

Pickering B Units planned for operation to September 2026, subject to CNSC approval, and to undergo a feasibility study for possible redevelopment

In September 2022, the Ontario Minster of Energy and OPG announced a plan to extend the operation of Units 5 to 8 of the Pickering nuclear generating station (Pickering B) to September 2026, which would provide Ontario with over 2,000 megawatts (MW) of clean and reliable energy capacity for an additional nine months. The extension is subject to the approval of the Canadian Nuclear Safety Commission (CNSC). As part of the announcement, OPG was also tasked with undertaking an update to its previous feasibility assessment for the redevelopment of Pickering B to operate beyond September 2026.

“The Province’s request is a testament to OPG’s history of operating our facilities safely and reliably, our strong project performance, including the Darlington Nuclear Refurbishment project, and our leading role in providing clean energy to Ontario’s homes, businesses and institutions,” said Ken Hartwick, OPG President and CEO. “Thanks to the hard work and dedication of our employees, the Pickering station is seeing some of its best performance ever and we are ready to support its safe operation through September 2026, subject to the required CNSC approvals.”

Sir Adam Beck I Hydroelectric GS G1 Unit returns to service

Following the successful replacement of the G2 unit at the Sir Adam Beck I Generating Station (GS) in the spring of this year, OPG completed installation of the G1 unit in October 2022. Successful completion of this work at G1 and G2 added approximately 115 MW of clean electricity at the Company’s flagship hydroelectric station.

“These new generator units are lighter, more efficient, and can generate more energy with less water required to pass through the turbine,” said Hartwick. “For more than a century, the Sir Adam Beck complex has been providing electricity to Ontarians. These upgrades will help it continue to produce clean, climate-change fighting power for many more decades.”

Darlington New Nuclear Project obtains financing from Canada Infrastructure Bank

In the third quarter of 2022, OPG entered into a credit facility agreement with the Canada Infrastructure Bank (CIB) to finance the preparation of the Darlington New Nuclear Project. OPG secured the facility to support the cost-effective development of clean, nuclear energy infrastructure to help meet Ontario’s future projected electricity needs.

“This low-interest facility will help OPG to further progress our Small Modular Reactor (SMR) to be operational at the Darlington New Nuclear Project site by the end of this decade,” said Hartwick. “We know nuclear energy, including from SMRs, is an essential part of the electricity mix to help decarbonize the energy sector. New generation from SMRs will be especially necessary as electricity demands increase due to electrification of higher-emitting sectors, including transportation. The CIB facility is a strong sign of the federal government’s support for this critical project.”

Net Income attributable to the Shareholder

Net income attributable to the Shareholder increased by $58 million and $199 million for the three and nine month periods ended September 30, 2022, respectively, compared to the same periods in 2021.

The increases in both periods were primarily attributable to the net impact of new regulated prices for OPG’s nuclear electricity generation resulting from the decisions issued by the Ontario Energy Board (OEB) in the second half of 2021, and higher earnings from the Contracted Hydroelectric and Other Generation business segment primarily due to higher wholesale electricity market prices from US operations.

The increases in both periods were partially offset by the impact of lower electricity generation within the Regulated – Nuclear Generation business segment due to the commencement of the refurbishment of Darlington GS Unit 1 in mid-February 2022, higher income tax expense resulting from higher earnings and fair value adjustments of non-core equity investments recognized in 2021.

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, 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.