OPG REPORTS 2022 FIRST QUARTER FINANCIAL RESULTS

Continues parallel refurbishment of two Darlington Units; Progresses clean nuclear energy development and introduces green hydrogen project

TORONTO, May 10, 2022 /CNW/ - Ontario Power Generation Inc. (OPG or Company) today reported its financial and operating results for the first quarter of 2022, with net income attributable to the Shareholder of $503 million, compared to $290 million for the same period last year.

First quarter highlights include:

Darlington Refurbishment

"Refurbishment of Darlington nuclear generating station's (Darlington GS) Units 3 and 1 continues according to plan, as the project, for the first time, refurbishes two units concurrently," said Ken Hartwick, OPG President and CEO. "We are seeing the results of the extensive planning for this project before execution began, and of the incorporation of innovation and lessons learned as we move through the refurbishment. This combination is proving key to our success."

Fuel channels are currently being installed in Unit 3, while the team works to ensure Unit 1, which was recently defueled, is separated from station containment to allow disassembly to begin.

OPG progresses new nuclear at Darlington

OPG recently awarded a contract to E.S. Fox Limited for the first phase of site preparation and support infrastructure for the Darlington New Nuclear Project with early site preparation expected to begin later this year.

"This early work sets the stage for deployment of the type of clean, safe new electricity generation Ontario needs as demand begins to rise due to electrification," said Hartwick.
"We look forward to seeing the site begin to take shape as OPG paves the way for the next generation of nuclear power in Ontario."

In April 2022, OPG and Tennessee Valley Authority (TVA), a US-based electric utility corporation, announced a pioneering partnership to develop advanced nuclear technology as an integral part of a clean energy future and creating a North American energy hub. OPG and TVA entered into a collaborative agreement to coordinate their explorations into the design, licensing, construction and operation of small modular reactors. The agreement will help to reduce the financial risk that comes from development of innovative technology, as well as future deployment costs.

Atura Power announces hydrogen production

OPG subsidiary Atura Power recently announced it has selected the Niagara Region as its first site for large-scale hydrogen production, pending an award of federal funding. The Niagara Hydrogen Centre will use a 20 MW electrolyzer to produce green hydrogen, which uses water and electricity as inputs.

"Hydrogen has the potential to be the low carbon fuel to help us reach net-zero and Ontario's clean electricity system can power its production," said Hartwick. "OPG's Climate Change plan pledged to drive innovation toward a cleaner future for Ontarians, and the work Atura Power is doing as a catalyst for Ontario's hydrogen economy is a critical step to get us there."

Net income attributable to the Shareholder

Net income attributable to the Shareholder increased during the first quarter of 2022 compared to the same period in 2021, due to the impact of higher nuclear base regulated prices effective January 1, 2022 resulting from the Ontario Energy Board's (OEB) decisions on OPG's application for new regulated prices for its nuclear electricity generation for the 2022-2026 period issued in the second half of 2021. Also contributing to the increase was higher electricity generation from the regulated nuclear stations during the first quarter of 2022 compared to the same period in 2021, due to fewer planned and unplanned outages.

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, 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.

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SOURCE Ontario Power Generation Inc.

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