OPG reports 2022 second quarter financial results

Toronto, ON – Ontario Power Generation Inc. (OPG or Company) today reported its financial and operating results for the second quarter of 2022, with net income attributable to the Shareholder of $446 million, compared to $518 million for the same period last year.

Second quarter highlights include:

Darlington’s Unit 3 Refurbishment progressing ahead of schedule

Refurbishment of Darlington nuclear generating station’s (Darlington GS) Unit 3, the second of four units to undergo a mid-life overhaul, is progressing ahead of schedule, with an expected return to service by late 2023. The earlier return to service date reflects OPG’s commitment to incorporating lessons learned from the successful Unit 2 refurbishment into the planning and execution of the refurbishment of Unit 3 to date, despite the challenges posed by the COVID-19 pandemic.

“Unit 3 is tracking toward safely returning to service several months ahead of schedule, by late 2023,” said OPG President and CEO Ken Hartwick. “This is a real testament to the dedicated support of OPG’s skilled workforce, working as “One Team” with our project partners, suppliers, contractors and Ontario’s robust nuclear supply chain. The team’s commitment to implementing lessons learned and innovative tooling to increase efficiency showcases OPG’s ability to complete large, complex projects on or ahead of plan.”

Sir Adam Beck I Hydroelectric GS G2 Unit returns to service

In May 2022, OPG successfully completed the replacement of the G2 unit at the Sir Adam Beck I GS, adding approximately 58 MW of renewable in-service generating capacity to the Company’s regulated hydroelectric fleet. The completion of the G2 unit marks the first full unit replacement to take place in the station’s 100-year history.

“Our investments in the flagship Sir Adam Beck I GS are vital to our fight against climate change,” said Hartwick. “The successful replacement of the G2 unit and the upcoming return to service of the G1 unit later this year will ensure that the station will continue to provide Ontario with clean, renewable power for years to come and support our net-zero emission goals.”

OPG and X-energy to pursue Xe-100 Small Modular Reactors

In June 2022, OPG and X-energy signed a framework agreement to pursue opportunities to deploy Xe-100 small modular reactors for industrial applications in Canada.

“As part of our climate change plan, we pledged to assist with decarbonization of the markets where we operate,” said Hartwick. “Through this partnership, OPG will support the use of nuclear technology to help heavy industry reach climate change goals by utilizing clean, safe electricity and high temperature steam to power their production facilities and enable decarbonization of their industrial processes.”

Net Income attributable to the Shareholder

Net income attributable to the Shareholder decreased by $72 million and increased by $141 million for the three and six month periods ended June 30, 2022, respectively, compared to the same periods in 2021.

The decrease in the second quarter of 2022, compared to the same period in 2021, was primarily attributable to lower electricity generation within the Regulated – Nuclear Generation business segment due to the commencement of the refurbishment of Darlington GS Unit 1 and market gains on non-core equity investments recognized in the second quarter of 2021. The decreases were partially offset by the net impact of 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.

In addition to the drivers above, the impact of higher electricity generation from the regulated nuclear stations in the first quarter of 2022 contributed to the increase for the six months ended June 30, 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 unaudited interim consolidated financial statements and Management’s Discussion and Analysis as at and for the three and six month periods ended June 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.