OPG reports 2023 first quarter financial results

Toronto, ON – Ontario Power Generation Inc. (OPG or Company) today reported its financial and operating results for the first quarter of 2023, with net income attributable to the Shareholder of $429 million, compared to $503 million for the same period last year.

First quarter highlights include:

Darlington’s Unit 3 to reconnect to Ontario’s grid ahead of schedule

“The team has completed the construction phase of Darlington Unit 3’s refurbishment and begun the work to restart the reactor and reconnect it to Ontario’s grid later this year to provide 30 more years of clean, safe electricity,” said OPG President and CEO Ken Hartwick. “Meanwhile, we have begun reassembling Unit 1, the third of four units being refurbished. Well past the half-way point, this refurbishment project remains on track, a testament to our vendors and OPG’s strong project management skills.”

Small Modular Reactor Technical Collaboration Agreement

OPG joined GE Hitachi Nuclear Energy (GE-Hitachi), the Tennessee Valley Authority and Poland’s Synthos Green Energy S.A in a technical collaboration agreement through which the four companies will invest in the development of the BWRX-300 small modular reactor (SMR) standard design and detailed design for key components, including the reactor pressure vessel. This sets the stage for the BWRX-300 design to be licensed and deployed in Canada, the United States, Poland and beyond.

Also, during the quarter, OPG announced an integrated project delivery model through which OPG, GE-Hitachi, SNC-Lavalin Group Inc. and Aecon Group Inc. will deploy the first SMR at the Darlington New Nuclear Project site using the BWRX-300 technology.

“This international collaboration advances the work necessary to efficiently develop the next generation of nuclear power,” said Hartwick. “OPG is proud to lead the way on SMR deployment: we have already begun site preparation for North America’s first grid-scale SMR at Darlington with the right team in place to complete construction in 2028.”

Investing in new and existing hydroelectric generation

Ontario’s electrification and growth mean significantly increased forecasted demand for electricity. To help meet this growing demand, OPG continues to invest in upgrading and optimizing existing hydroelectric assets. OPG is also looking ahead: in response to a request from the Province of Ontario, OPG released a report which showed that as much as 4,000 megawatts of new, clean hydroelectric generation could be built in northern Ontario.

“Unlocking northern Ontario’s potential hydroelectric generation is a clean, reliable, made-in-Ontario solution that will benefit the region’s economy and help meet the province’s growing electricity needs,” said Hartwick. “We will continue to engage and consult with Indigenous communities on potential projects and discuss opportunities for partnerships ahead of advancing much-needed new generation.”

Net income attributable to the Shareholder

Net income attributable to the Shareholder decreased during the first quarter of 2023 compared to the same period in 2022. The expected decrease was primarily a result of lower earnings from the Regulated – Nuclear Generation business segment driven by lower electricity generation due to the refurbishment of Darlington nuclear generation station’s (Darlington GS) Unit 1, which began in February 2022, partially offset by a higher base regulated price for OPG’s nuclear generation. The decrease was partially offset by lower income tax expense for the first quarter of 2023 compared to the same period in 2022, as a result of lower income before taxes.

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 months ended March 31, 2023, 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.