OPG REPORTS 2023 FINANCIAL RESULTS
OPG to begin preparations for Pickering station's mid-life overhaul; Excellent operating performance at Pickering and Darlington stations contributes to strong results.
TORONTO, March 7, 2024 /CNW/ - Ontario Power Generation Inc. (OPG or the Company) today reported its financial and operating results for 2023, with net income attributable to the Shareholder of $1,741 million, compared to $1,636 million for 2022.
In January 2024, the Province of Ontario (Province) announced its support for OPG proceeding with next steps toward refurbishing Units 5 to 8 at the Pickering Nuclear Generating Station (Pickering GS). Once refurbished, the Pickering GS would produce more than 2,000 megawatts (MW) of electricity, equivalent to powering two million homes. In addition to fuelling economic growth, a refurbished Pickering GS would also help meet increasing demand from electrification.
"Pickering Nuclear Generating Station's strong safety, operational and equipment reliability performance was once again recognized in 2023, a fact that almost certainly factored into the Province's recent decision to support OPG refurbishing this clean energy workhorse," said OPG President and CEO Ken Hartwick. "We look forward to the Pickering station continuing to help meet the growing electricity demands of a thriving and electrified Ontario for another three-plus decades."
The Darlington Refurbishment Project continued apace, as work on the fourth and final unit began in July 2023.
"Unit 3's earlier-than-anticipated return to service in July 2023 helped power Ontario through the hot summer months," said Hartwick. "Refurbishments of the final two units – Units 1 and 4 – continue on track as we head toward the project's 2026 finish line. The lessons learned on the Darlington Refurbishment Project set us up for success as we begin preparations for Pickering station's mid-life overhaul."
The Pickering GS and the Darlington Nuclear Generating Station (Darlington GS) achieved the highest unit capability factors since 2019, a testament to OPG's operational and project excellence.
"In 2023, the Pickering station stepped up to power Ontario's energy needs during a historically tight energy market, recording its highest generation output since 2019, and the second highest ever as a six-unit station," said Hartwick.
Hydroelectric generation continues to be another significant source of clean energy for Ontario, accounting for over one-third of OPG's electricity production. Led by the historic Sir Adam Beck Complex, OPG's hydroelectric facilities in the Niagara Region delivered their highest generation output in 40 years, providing safe and reliable renewable energy to Ontario's grid. As well, a significant safety project to replace two large steel sluice gates at the Smoky Falls Dam on the Lower Mattagami River is proceeding on budget and ahead of schedule, and is expected to return to service in 2024.
"Hydroelectricity has played a key role in powering economies across Ontario with reliable, renewable energy for more than a century," said Hartwick. "Investing in upgrades of these long-term assets will ensure their continued valuable contributions. This project will rehabilitate the 100-year-old structures at Smoky Falls, increasing safety, protecting OPG's operations, and helping ensure that the station continues to operate reliably for decades to come."
Net income attributable to the Shareholder for 2023 increased by $105 million, compared to 2022. This increase was primarily attributable to the Regulated – Nuclear Generation business segment, driven by higher electricity generation and a higher regulated price in effect during 2023 pursuant to decisions previously issued by the Ontario Energy Board. These results reflect the strong performance of Unit 2 and Unit 3 of the Darlington GS after their refurbishment and the ongoing operational excellence of the Pickering GS.
For 2023, OPG's net income was also impacted by higher compensation expenses under the Company's collective agreements as a result of the Ontario Superior Court's decision, which found unconstitutional the Protecting a Sustainable Public Sector for Future Generations Act, 2019 that set limits on compensation increases for employees in the Ontario public sector. Further information can be found in the Management's Discussion and Analysis as at and for the year ended December 31, 2023, in the section, Significant Developments under the heading, Financial Strength.
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 towards a post-carbon economy.
Ontario Power Generation Inc.'s audited consolidated financial statements and Management's Discussion and Analysis as at and for the year ended December 31, 2023, 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.
Ontario Power Generation, 416-592-4008 or 1-877-592-4008
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