OPG reports 2024 financial results

Strong progress continues on nuclear and hydroelectric refurbishments, and small modular reactors; new nuclear exploration launched at Wesleyville site

TORONTO, March 4, 2025 /CNW/ - Ontario Power Generation (OPG) is on track to deliver the Darlington Refurbishment Project on time and within the $12.8 billion budget. This significant accomplishment was part of OPG's reporting on its financial and operating results for 2024.

The electricity generator also reported a net income attributable to the Shareholder of $988 million, compared to $1,741 million for 2023. The decrease was expected and reflects the planned cyclical outage activities on Unit 2 of the Darlington nuclear generating station (Darlington GS) in 2024.

Darlington Nuclear Generating Station's Unit 1 Reactor Returned to Service from Refurbishment; Overall Project is on Time and Budget

Last fall, OPG returned the Darlington GS Unit 1 to full power after refurbishment, approximately five months ahead of schedule. The refurbishment team is now rebuilding the station's Unit 4, the final refurbishment unit, which is on track for completion in 2026, as scheduled.

"Though we faced unprecedented and unforeseeable external forces related to COVID-19 and inflation, our team was able to manage those costs through innovation and efficiency," said Nicolle Butcher, OPG President and CEO. "Now, in the ninth year of this 10-year execution phase, we are on time and on budget, clearly demonstrating our ability to responsibly execute large low-carbon energy projects, working with Ontario and Canada's robust domestic nuclear supply chains."

In addition, modifications made to Unit 1 during the refurbishment outage mean it is now capable of producing life-saving Cobalt-60 (Co-60) medical isotopes. The medical community uses this product to sterilize 30 percent of the world's single-use medical devices, including syringes, gloves and implants. The food industry also uses Co-60 to treat some foods against harmful bacteria and insects. The team will similarly modify the other three units of the Darlington GS to help produce Co-60.

Pickering Nuclear Generating Station Refurbishment Progressed to Definition Phase

OPG completed the initiation phase of Units 5 to 8 refurbishment at the Pickering nuclear generating station (Pickering GS) in the fourth quarter of 2024. Now, the team embarks on the project definition phase, during which OPG will complete a high-quality cost estimate and schedule for the project, progress detailed engineering, further procurement and contracting work, optimize project scope as well as develop a robust project execution plan.

As part of this work, OPG has entered into a number of contracts, including with Aecon Group Inc., AtkinsRéalis and BWXT Canada, for early engineering and procurement on the retube feeder and boiler replacement program.

"Working with trusted partners, including many who have helped us achieve project excellence on Darlington's refurbishment, will assist in meeting our goals on Pickering's refurbishment," said Butcher. "The extensive planning and preparation underway will help ensure the final project, if approved by the Province and the Canadian Nuclear Safety Commission, is completed safely and with quality, on time and on budget."

Darlington New Nuclear Project Update

OPG continues to advance the Darlington New Nuclear Project, with site preparation underway for four approximately 300-megawatt (MW) BWRX-300 small modular reactors (SMR). The Canadian Nuclear Safety Commission (CNSC) concluded its two-part Licence to Construct hearing for the first SMR in January 2025.

"Pending a regulatory decision from the CNSC and final approval from the Province, we are prepared to begin constructing the first reactor with the goal of deploying Canada's first grid-scale SMR by the end of the decade," said Butcher.  "As first movers on the SMR technology, we hope to build a foundation for further growing Ontario and Canada's nuclear supply chains."

Strategic Sites for New Generation Update, Highlighting New Nuclear Potential at Wesleyville

In November 2024, the Province of Ontario (Province) asked OPG to begin discussions with Indigenous and municipal leaders to gauge community support for potential electricity generation at three OPG-owned sites: Wesleyville, Nanticoke and Lambton. All three sites are already zoned for electricity generation, are near transmission, and located in areas of Ontario experiencing significant growth.

In January 2025, with the First Nations' willingness to enter discussions and following a formal expression of interest from Town of Port Hope, the Province has asked OPG to explore opportunities for new nuclear generation at the Wesleyville site. OPG also continues discussions with Indigenous rightsholders, local elected leaders and municipalities in the Nanticoke and Lambton areas.

"With electricity demand projected to grow by as much as 75% between now and 2050 we know there will be a need for new generation," said Butcher. "Building and maintaining strong relationships with host communities and the Indigenous Nations on whose traditional territory and treaty territory we operate is key to the siting process. We look forward to expanded conversations with Nations and municipalities to understand their perspectives and aspirations for their communities."

Hydroelectric Refurbishments

With the Province's announced support, OPG is moving forward with plans to refurbish and expand a number of hydroelectric generating stations across Northern Ontario over the next decade. When complete, this work will secure up to 830 MW of electricity in the North, enough to power approximately 830,000 homes.

This is part of OPG's plan to refurbish and redevelop hydroelectric generating stations across the province to maintain reliable and efficient operations and increase production of renewable energy for decades into the future.

"Many of our hydroelectric stations have been in service, generating the electricity Ontarians need, for decades and, in some cases, more than a century," said Butcher. "The work we are doing now and over the next number of years to renew our hydroelectric fleet will ensure those same stations reliably produce power for future generations to come."

Net Income Attributable to the Shareholder

Net income attributable to the Shareholder for 2024 was $988 million, a decrease of $753 million compared to 2023. The decrease was primarily attributable to expected lower earnings from the Regulated – Nuclear Generation business segment, driven by lower electricity generation and a lower base regulated price for OPG's nuclear electricity generation in effect during 2024 as previously approved by the Ontario Energy Board, higher operations, maintenance and administration expenses, and higher depreciation and amortization expenses.

The lower electricity generation was expected and primarily due to a planned cyclical maintenance outage on Unit 2 of the Darlington GS in the first half of 2024 and the end of commercial operation of Unit 1 of the Pickering GS on October 1, 2024, as planned, partially offset by fewer planned outage days at the Pickering GS.

About OPG

As one of North America's largest, most diverse electricity generators, OPG invests in local economies and employs thousands of people across Ontario. OPG and its family of companies are advancing the development of new low-carbon technologies, refurbishment projects, and electrification initiatives to power the growing demands of a clean economy. Learn more about how the company is delivering these initiatives while prioritizing people, partnerships, and strong communities by reading OPG's Integrated ESG Annual Report.

Ontario Power Generation Inc.'s audited consolidated financial statements and Management's Discussion and Analysis as at and for the year ended December 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.

For further information, please contact: Ontario Power Generation, 416-592-4008 or 1-877-592-4008