OPG Reports 2021 Second Quarter Financial Results
Continues execution of Darlington Refurbishment; moving forward with developing low-carbon hydrogen production and small modular reactors
TORONTO, Aug. 10, 2021 /CNW/ - Ontario Power Generation Inc. (OPG or Company) today reported its financial and operating results for the second quarter of 2021, with net income attributable to the Shareholder of $518 million, compared to $458 million for the same period last year.
"We are beginning to see light at the end of the long pandemic tunnel in Ontario," said Ken Hartwick, OPG President and CEO. "I am proud that throughout the pandemic, OPG workers have remained focused on keeping our power production facilities operating safely and reliably each and every day, while advancing essential projects and adhering to stringent COVID-related safety protocols."
"I am pleased that the Darlington refurbishment continues to progress on plan, with reactor disassembly on Unit 3, the second unit to be overhauled, well underway," said Ken Hartwick. "An extensive reconditioning of the turbine generator, a critical piece of equipment that is instrumental to ensuring Unit 3 can supply Ontarians with 24/7 emissions-free power for at least three more decades, is progressing well as part of the refurbishment, thanks to the efforts of our strong and dedicated project team."
Planning work continues toward siting a grid-scale nuclear small modular reactor (SMR) at the Darlington nuclear site as early as 2028, pending regulatory approvals and licensing. "Nuclear power is integral to our low-carbon future and SMRs are the flexible, scalable answer to achieving climate goals," said Ken Hartwick. "We are leveraging Ontario's decades of safe, reliable nuclear power experience to lead the way on SMRs, paving the way for others to utilize nuclear power to achieve climate objectives."
OPG continues to take meaningful steps to advance its Climate Change Plan commitments to be a net-zero company by 2040 and drive innovation to help achieve a net-zero economy by 2050. In addition to developing SMRs, this includes laying the groundwork for low-carbon hydrogen production in Ontario through subsidiary Atura Power, which is advancing the creation of regional hydrogen hubs as part of a new hydrogen-related business. Leveraging Ontario's clean electricity system, low-carbon hydrogen can reduce or offset carbon emissions in a variety of applications, including long-haul and heavy-duty trucking.
The increase in net income attributable to the Shareholder for the second quarter of 2021, compared to the same period in 2020, was primarily attributable to market gains on non-core equity investments, partially offset by lower earnings from the regulated nuclear stations due to lower electricity generation in the quarter. The lower earnings from the lower electricity generation were mainly driven by actions taken in 2020 in response to the COVID-19 pandemic.
On August 6, 2021, the Ontario Energy Board (OEB) approved a settlement agreement on most of the issues in OPG's application for new regulated prices for nuclear electricity generation for the 2022-2026 period. Final regulated prices reflecting the settlement agreement and the OEB's pending decision on the unsettled issues are expected to be approved in the second half of 2021. The new regulated prices will be effective January 1, 2022. The base regulated price for OPG's hydroelectric electricity generation for the 2022-2026 period will be equal to the current approved 2021 regulated price. The settlement agreement did not impact OPG's financial results for the second quarter of 2021.
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, 2021 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.
SOURCE Ontario Power Generation Inc.
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