OPG reports 2024 first quarter financial results

Darlington's Unit 1 refurbishment is in the final segment; OPG continues to lead the way on clean nuclear and hydroelectric energy projects

Toronto, May 7, 2024 /CNW/ - Ontario Power Generation Inc. (OPG or Company) today reported its financial and operating results for the first quarter of 2024, with net income attributable to the Shareholder of $221 million, compared to $429 million for the same period last year. The decrease compared to the first quarter of 2023 was expected given the planned cyclical outage activities scheduled for Unit 2 of the Darlington nuclear generating station (Darlington GS).

In April 2024, the Canadian Nuclear Safety Commission (CNSC) announced that the existing environmental assessment (EA) for the Darlington New Nuclear Project (DNNP) is applicable to the small modular reactor (SMR) technology selected by OPG, the GE Hitachi Nuclear Energy BWRX?300 reactor. Meanwhile, the project has transitioned into the next phase of site preparation, which includes excavation for the first SMR's power block. Pending regulatory and Shareholder approval, nuclear construction work on the first SMR is expected to begin in 2025.

"The CNSC's decision confirms OPG's stance related to the EA and is a critical next step in OPG's application for a licence to construct the first of the four SMRs at the DNNP site," said Ken Hartwick, OPG President and CEO. "The on-going site preparation lays the foundation for this fleet of reactors that will produce enough clean electricity to power approximately 1.2 million Ontario homes. Our fleet approach to both early work and the project as a whole means we can leverage common infrastructure, such as shared roads, utilities, and water intake, which will help to drive down regulatory, construction, and operating costs."

The Darlington Refurbishment project remains on plan. Unit 4, the final unit to undergo refurbishment at the Darlington GS, is currently in the component removal phase. On the station's Unit 1, the project completed the lower feeder installation series and the lower body supports installation series, signifying the end of the third major segment of the refurbishment, Reassembly, and the beginning of the final major segment, Power Up.

"Last summer, we were able to return Darlington's Unit 3 to service well ahead of schedule. With ongoing strong project management and performance excellence, we are tracking to return Unit 1 to service in the fourth quarter of 2024, also ahead of schedule," said Hartwick. "This is a testament to the 'One Team' approach by OPG and its project partners, as well as our commitment to implementing lessons learned along the way to ensure continuous improvement. By demonstrating that large nuclear projects can indeed be delivered as planned, OPG is growing public confidence in this valuable technology and its many economic, environmental and social benefits, including medical isotopes."

To continue to generate reliable, low-carbon and cost effective hydropower, OPG is investing in its existing assets across the province. By upgrading and optimizing these stations, OPG is focused on modernizing the infrastructure, improving generating capacity and uncovering efficiencies at facilities that, in some cases, have already served Ontarians for more than a century. As part of this program, Ontario Energy Minister Todd Smith announced in April 2024 support for OPG's plan to refurbish its hydroelectric fleet in the Niagara region, including up to 25 generating units at the Sir Adam Beck Complex.

"This $1 billion investment will secure up to 1,700 megawatts of clean, renewable electricity ? enough to power about 1.7 million homes ? for decades to come," said Hartwick. "Extending the life of these flagship stations will support the increasing demands of electrification and a growing economy while creating more than 200 highly skilled jobs locally."

Another station slated for life extension is the Kakabeka Falls hydroelectric generating station in northwestern Ontario. OPG is currently in the development phase of this project, with the two-year construction expected to begin in 2025.

"Kakabeka Falls is the second oldest station in OPG's fleet, and remarkably, still has much of its original equipment from 1906 in operation," said Hartwick. "The refurbishment of this station is expected to result in increased output of up to
27 megawatts, helping to meet Ontario's clean power needs for another century."

Net income attributable to the Shareholder decreased by $208 million for the first quarter of 2024, compared to the same period in 2023. The decrease was expected and primarily attributable to lower earnings from the Regulated ? Nuclear Generation business segment, driven by a higher number of planned outage days in the cyclical maintenance schedule at the Darlington GS resulting in lower electricity generation and higher operating, maintenance and administration expenses, and a lower base regulated price for OPG's nuclear electricity generation in effect during 2024 as previously approved by the Ontario Energy Board.

As one of North America's largest, most diverse electricity generators, OPG invests in local economies and employs thousands of people across Ontario and the US. OPG and its family of companies are leading the development of new clean technologies, refurbishment of existing assets, and electrification initiatives to power the growing demand of a clean economy for decades to come. OPG is a recognized world leader in nuclear operations with more than five decades of experience. Learn more about how the company is advancing these initiatives while prioritizing people, partnerships, and strong communities by reading OPG's Climate Change Plan, Reconciliation Action Plan, and Equity, Diversity, and Inclusion (ED&I) strategy.

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, 2024, 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.

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SOURCE Ontario Power Generation Inc.