Darlington's Unit 1 refurbishment is in the
final segment; OPG continues to lead the way on clean nuclear and
hydroelectric energy projects
Toronto, May 7, 2024
/CNW/ - Ontario Power Generation Inc. (OPG or Company) today
reported its financial and operating results for the first quarter
of 2024, with net income attributable to the Shareholder of
$221 million, compared to
$429 million for the same period last
year. The decrease compared to the first quarter of 2023 was
expected given the planned cyclical outage activities scheduled for
Unit 2 of the Darlington nuclear
generating station (Darlington GS).
Darlington New Nuclear
Project
In April 2024, the Canadian
Nuclear Safety Commission (CNSC) announced that the existing
environmental assessment (EA) for the Darlington New Nuclear
Project (DNNP) is applicable to the small modular reactor (SMR)
technology selected by OPG, the GE Hitachi Nuclear Energy BWRX‑300
reactor. Meanwhile, the project has transitioned into the next
phase of site preparation, which includes excavation for the first
SMR's power block. Pending regulatory and Shareholder approval,
nuclear construction work on the first SMR is expected to begin in
2025.
"The CNSC's decision confirms OPG's stance related to the EA and
is a critical next step in OPG's application for a licence to
construct the first of the four SMRs at the DNNP site," said
Ken Hartwick, OPG President and CEO.
"The on-going site preparation lays the foundation for this fleet
of reactors that will produce enough clean electricity to power
approximately 1.2 million Ontario
homes. Our fleet approach to both early work and the project as a
whole means we can leverage common infrastructure, such as shared
roads, utilities, and water intake, which will help to drive down
regulatory, construction, and operating costs."
Darlington Refurbishment
The Darlington Refurbishment project remains on plan. Unit 4,
the final unit to undergo refurbishment at the Darlington GS, is
currently in the component removal phase. On the station's Unit 1,
the project completed the lower feeder installation series and the
lower body supports installation series, signifying the end of the
third major segment of the refurbishment, Reassembly, and the
beginning of the final major segment, Power Up.
"Last summer, we were able to return Darlington's Unit 3 to service well ahead of
schedule. With ongoing strong project management and performance
excellence, we are tracking to return Unit 1 to service in the
fourth quarter of 2024, also ahead of schedule," said Hartwick.
"This is a testament to the 'One Team' approach by OPG and its
project partners, as well as our commitment to implementing lessons
learned along the way to ensure continuous improvement. By
demonstrating that large nuclear projects can indeed be delivered
as planned, OPG is growing public confidence in this valuable
technology and its many economic, environmental and social
benefits, including medical isotopes."
Planned Hydroelectric Life
Extensions
To continue to generate reliable, low-carbon and cost effective
hydropower, OPG is investing in its existing assets across the
province. By upgrading and optimizing these stations, OPG is
focused on modernizing the infrastructure, improving generating
capacity and uncovering efficiencies at facilities that, in some
cases, have already served Ontarians for more than a century. As
part of this program, Ontario Energy Minister Todd Smith announced in April 2024 support for OPG's plan to refurbish
its hydroelectric fleet in the Niagara region, including up to 25
generating units at the Sir Adam Beck Complex.
"This $1 billion investment will
secure up to 1,700 megawatts of clean, renewable electricity –
enough to power about 1.7 million homes – for decades to come,"
said Hartwick. "Extending the life of these flagship stations will
support the increasing demands of electrification and a growing
economy while creating more than 200 highly skilled jobs
locally."
Another station slated for life extension is the Kakabeka Falls hydroelectric generating
station in northwestern Ontario.
OPG is currently in the development phase of this project, with the
two-year construction expected to begin in 2025.
"Kakabeka Falls is the second
oldest station in OPG's fleet, and remarkably, still has much of
its original equipment from 1906 in operation," said Hartwick. "The
refurbishment of this station is expected to result in increased
output of up to
27 megawatts, helping to meet Ontario's clean power needs for another
century."
Net income attributable to the
Shareholder
Net income attributable to the Shareholder decreased by
$208 million for the first quarter of
2024, compared to the same period in 2023. The decrease was
expected and primarily attributable to lower earnings from the
Regulated – Nuclear Generation business segment, driven by a higher
number of planned outage days in the cyclical maintenance schedule
at the Darlington GS resulting in lower electricity generation and
higher operating, maintenance and administration expenses, and a
lower base regulated price for OPG's nuclear electricity generation
in effect during 2024 as previously approved by the Ontario Energy
Board.
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 and the US. OPG and its family of
companies are leading the development of new clean technologies,
refurbishment of existing assets, and electrification initiatives
to power the growing demand of a clean economy for decades to come.
OPG is a recognized world leader in nuclear operations with more
than five decades of experience. Learn more about how the company
is advancing these initiatives while prioritizing people,
partnerships, and strong communities by reading OPG's Climate
Change Plan, Reconciliation Action Plan, and Equity, Diversity, and
Inclusion (ED&I) strategy.
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,
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.
Follow us @opg
SOURCE Ontario Power Generation Inc.