OPG Moves to Planning Phase of Darlington Refurbishment

Pickering B to Enter Final Decade of Operation with $300-Million Investment

DURHAM REGION, ON, Feb. 16 /CNW/ - Today, Ontario Power Generation (OPG) announced a two-part investment strategy for its nuclear generating stations in Durham Region.

First, OPG will proceed with a detailed planning phase for the mid-life refurbishment of the Darlington Nuclear Generating Station east of Toronto, with construction expected to start in about 2016. The business decision to move forward with an investment in Darlington comes after very positive outcomes of initial studies on the plant's condition and continued strong operating performance. The next phase of the process will include an Environmental Assessment, an Integrated Safety Review and an Integrated Improvement Plan that will define the scope, cost and schedule of the refurbishment project.

OPG will also invest $300 million to ensure the continued safe and reliable performance of its Pickering B station for approximately 10 years. Following this, OPG will begin the longer term decommissioning process as refurbishment for Pickering B station will not be pursued. The first step in this process is to layup the reactors and place them into safe storage. Pickering staff will have future opportunities placing the Pickering units in a safe storage state, at the Darlington refurbishment and operations, or at the potential new build at Darlington.

Extensive safety, environmental and equipment reliability studies conducted at the station concluded the Pickering plant can continue to operate safely and reliably to meet the province's energy needs through to 2020. OPG has indicated to the Canadian Nuclear Safety Commission that later this year it will file a Continued Operation Plan that takes Pickering B to its end of life.

"As Ontario's generating company, OPG's nuclear and hydro fleets are the backbone of the provincial electricity system," said Brad Duguid, Minister of Energy and Infrastructure. "I support this business investment strategy as it aligns with the government's vision for a clean energy future. It is also respectful of employees and it will ensure continued economic benefits to the people of Durham Region and Ontario."

"OPG is committed to continued business investment in Durham Region to meet the electricity production needs of Ontarians," said Tom Mitchell, OPG's President and CEO. "Investing in refurbishment at Darlington and continuing operation at Pickering B provide the best value for the people of Ontario."

"The key to a successful refurbishment is having a clear understanding of the scope and cost of the work we need to do well before we start construction," said Bill Robinson, Executive Vice President Nuclear Projects.

In planning the Darlington refurbishment, OPG will build on the accomplishments and lessons learned during the Pickering A restart and the Pickering safe storage project. The restart of Pickering Unit 1 was completed on time and on budget, and the safe storage project for Units 2 and 3 is currently tracking on budget and on time for completion this year. This phase of the Darlington refurbishment will also reflect the same thorough process undertaken for the Pickering B Environmental Assessment and Integrated Safety Review.

OPG continues to proceed with work that supports the construction and operation of a new nuclear station located at the Darlington site. The Environmental Assessment and site license work for a potential new build will continue in parallel with the above investment activities.

    
                                BACKGROUNDERS

    -   To learn more about the Darlington Refurbishment Project and the
        investment in Pickering Nuclear Continued Operations visit
       
http://www.opg.com/news/releases/100211%20Nuclear%20Investment%20Strategy.asp
    

For further information: OPG Media Relations, [phone] or 1-877-592-4008