OEB Denies Interim Payment Increase for OPG Regulated Assets

    TORONTO, Feb. 8 /CNW/ - The Ontario Energy Board (the Board) has released
an Order, establishing Ontario Power Generation's (OPG) payment levels interim
effective April 1, 2008 for its regulated nuclear and baseload hydro
generating assets.
    The amount paid to OPG's baseload hydroelectric generation, established
in 2005, was set by Government Regulation at $33 per megawatt hour (MWh), and
the price for OPG's nuclear generation at $49.50/MWh. These payment amounts
continue unchanged in the Board's order.
    OPG requested an interim increase in payment amounts effective April 1,
2008 of $35.35/MWh for its regulated hydroelectric facilities and $53.00/MWh
for the output of its nuclear facilities. In its Decision, the Board expressed
concern, at this point, with granting the requested increase. It ruled that
the main argument was not financial harm but rather the advantages of rate
smoothing to avoid rate shock to consumers, an issue that can be dealt with at
the conclusion of this proceeding.
    The full amount OPG is requesting is $37.70/MWh for its regulated
hydroelectric facilities and $41.10/MWh plus a fixed payment of $57.7 million
per month for its nuclear facilities. The Board expects to determine the final
payment amounts for OPG's nuclear and baseload hydro generating assets
sometime around the middle of 2008.

    The Ontario Energy Board regulates the province's electricity and natural
gas sectors in the public interest. It envisions a viable and efficient energy
sector with informed consumers, and works towards this vision through
regulatory processes that are effective, fair and transparent.
    For more information on the Board or to view the transcript of the
Board's ruling, please visit our website at www.oeb.gov.on.ca or contact the
Consumer Relations Centre at 416-314-2455 or toll-free at 1-877-632-2727.

For further information:

For further information: Paul Crawford, Ontario Energy Board, (416)

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