OPG Reports 2025 Financial Results

Darlington Refurbishment ahead of schedule and under budget; progress achieved on other major clean energy projects

OSHAWA, ON, March 12, 2026 /CNW/ - Ontario Power Generation Inc. (OPG or Company) today reported its financial and operating results for 2025, with net income attributable to the Shareholder of $1,509 million, compared to $988 million for 2024.

Darlington Nuclear Refurbishment

With careful planning and just over nine years of execution, the final unit of the Darlington Nuclear Refurbishment Project has been synchronized to the electricity grid, with high power operation achieved during final commissioning ahead of a full and safe return to service expected in March 2026, over four months ahead of schedule and under budget. Following project closeout activities, OPG expects the project to be completed approximately $150 million below the $12.8 billion budget OPG publicly committed to when construction commenced in 2016.

The project ensures that the Darlington nuclear generating station (Darlington GS) will continue to reliably produce approximately 3,500 MW of clean, cost effective electricity – enough to power more than 3.5 million homes – for at least another 30 years.

Darlington Refurbishment has created thousands of jobs for Ontarians during construction and in support of the station's extended operating lifespan. It also reinvigorated Ontario's nuclear supply chain, which is now well positioned to advance the refurbishment of the Pickering nuclear generation station (Pickering GS) and the construction of the G7's first grid-scale small modular reactor (SMR) at the Darlington New Nuclear Project (DNNP) site.

"Early, safe, and under-budget completion of this clean energy mega-project clearly demonstrates OPG's ability to manage large complex projects – and that is key as we proceed with other large infrastructure work," said Nicolle Butcher, OPG's President and CEO. "Our careful evaluation and planning of projects like these ensures long-term reliability and value for electricity consumers, while supporting the clean energy future Ontarians expect."

Pickering Nuclear Refurbishment

In November 2025, the Province of Ontario (Province) announced its approval of OPG's plan to proceed with the refurbishment of Units 5-8 at the Pickering GS.

Refurbishing the Pickering GS will secure more than 2,000 MW of clean, reliable nuclear power for Ontario for another 30-plus years, enough to power more than two million homes. Same as for the Darlington Refurbishment, OPG has released a high-confidence overall project cost estimate, based on the detailed planning and engineering completed. The approved budget to refurbish the four units is $26.8 billion, including interest, cost escalation, and contingency.

The project is expected to have a significant positive impact on Ontario's economy, creating thousands of jobs during construction, sustaining thousands of jobs during the station's extended operating life, and growing Ontario's nuclear supply chain.

"We have the talent and experience, honed during the Darlington Refurbishment and ready to transition to this project, to deliver Pickering Refurbishment within budget and make it as successful as Darlington's," said Butcher.

As planned, OPG expects to remove the four Pickering units from service at the end of the third quarter of 2026, followed by defueling of the reactors, with project execution expected to commence in January 2027. OPG and its project partners anticipate that the four-unit refurbishment will be completed by 2034, with the first unit scheduled to complete refurbishment, Unit 5, expected to return to service in 2031.

Initial Project Description for Potential New Nuclear at OPG's Wesleyville Site

In December 2025, OPG filed the Initial Project Description (IPD) for potential new nuclear generation development at its approximately 540-hectare Wesleyville site in Port Hope, Ontario with the Impact Assessment Agency of Canada. The IPD, a preliminary document that provides an overview of the proposed project, is the first step in the federal Impact Assessment process for assessing the project's potential impacts on the environment, health, social and economic conditions, and Indigenous rights, and to explore how adverse effects could be mitigated.

Since the Province asked OPG to explore opportunities for new nuclear generation at the site in early 2025, OPG has been actively engaging with Indigenous Rights-holders, the Municipality of Port Hope, stakeholders, and the public about the potential for such a project. OPG developed the IPD based on a range of potential nuclear technologies that could be deployed, with a total generating capacity of up to 10,000 MW. The IPD submission initiated the first of several opportunities for public comment in the multi-phased Impact Assessment process, which is expected to span several years.

"We are excited to take this first regulatory step as we continue our engagement on the potential for nuclear generation at our Wesleyville site in Port Hope," said Butcher. "OPG extends our thanks to Alderville, Curve Lake, Hiawatha, and Mississaugas of Scugog Island First Nations of the Williams Treaties First Nations for their substantive contribution to this document, as well as to the Municipality of Port Hope."

Meanwhile, OPG and the Municipality of Port Hope have signed a Memorandum of Understanding (MOU) aimed at collaboration through the assessment process. The MOU also includes an additional $4.5 million in growth readiness funding to Port Hope to support the community's preparation for and exploration of nuclear power. OPG is committed to ensuring that the Municipality of Port Hope is able to engage fully on behalf of its residents in the multi-year process to assess and develop the site.

Federal and Provincial Support for Nuclear Projects

As announced in October 2025, OPG secured up to $3 billion in aggregate equity financing for the four-SMR DNNP from the provincial Building Ontario Fund (BOF) and the federal Canada Growth Fund (CGF), subject to the satisfaction of certain conditions. OPG will remain the majority owner, project manager and operator of the DNNP, with the CGF and BOF acquiring minority equity interests in an OPG subsidiary formed for this purpose.

Additionally, in December 2025, the Province amended Ontario Regulation 53/05 under the Ontario Energy Board Act, 1998 to establish the rate-setting framework through the Ontario Energy Board (OEB) that enables OPG to enter commercial partnerships for DNNP. The amendments also permit OPG to recover, through regulated prices set for OPG's electricity generation by the OEB, interest amounts associated with expenditures on the Pickering Refurbishment and the DNNP prior to placing these assets into service.

In late 2025, the Province also committed to providing a $5 billion equity injection over the 2025-2027 timeframe toward OPG's overall financing needs. In December 2025, the Province injected $1 billion of such funding to OPG, in exchange for shares, per the arrangement.

"These credit-supportive financing instruments, which will lower costs to Ontario ratepayers in the longer term, underscore the Province's commitment to advancing nuclear energy development," said Butcher. "With demand for clean energy in Ontario poised to grow by as much as 65 per cent by 2050, the time to invest in new and renewed generation is now. These mechanisms help us to do so in a way that balances this critical need with affordability for Ontario ratepayers."

Filing of Rate Application to Support Ontario's Growing Energy Needs

In December 2025, OPG filed a comprehensive application for new regulated prices for electricity to be generated from its regulated hydroelectric and nuclear assets, including the first DNNP SMR, effective for the January 1, 2027 to December 31, 2031 period, with the OEB. This submission marks the start of a formal public review process by the OEB that is expected to continue through most of 2026.

The Province's Independent Electricity System Operator forecasts electricity demand in the province will rise significantly by 2050. As part of the Province's broader plan to ensure secure, reliable and affordable power to meet these growing needs, OPG has been tasked with refurbishing and expanding its clean electricity generating fleet. These investments and the work to deliver them underpin OPG's application for new regulated prices.

"The proposed rates in our application would help us deliver on critical investments needed to meet rising energy demand – driven by electrification, new industries, and a growing population – while ensuring transparency and public accountability through the OEB's rigorous review process, with OPG being the only generator in the province to undergo such review," said Butcher.

Frederick House Lake Dam rehabilitation

OPG has substantially completed work on the Frederick House Lake Dam rehabilitation project near Timmins, Ontario, under budget and ahead of schedule. This work will extend the dam's operating life, while continuing to uphold industry leading standards of dam and public safety.

The Frederick House Lake Dam is one of 239 dams that OPG operates across Ontario. Constructed in the 1930s, this dam has a long history of managing and storing water for hydroelectric generation at Abitibi Canyon and Otter Rapids generating stations in northeastern Ontario.

"The Frederick House Lake Dam, which is approaching 90 years in service, is a great example of the value and durability of OPG's hydroelectric assets," said Butcher. "Through continued investment in our hydroelectric fleet, we are modernizing infrastructure, improving generating capacity and realizing efficiencies to extend the life of these assets for generations to come."

Net Income attributable to the Shareholder

Net income attributable to the Shareholder for 2025 was $1,509 million, representing an increase of $521 million compared to 2024. The increase was primarily attributable to higher earnings from the Regulated – Nuclear Generation business segment, reflecting lower operating, maintenance and administration expenses, mainly due to fewer planned cyclical outage activities and the cessation of commercial operation of Unit 1 and Unit 4 of the Pickering GS in the fourth quarter of 2024 as planned, and higher revenue as a result of higher nuclear electricity generation. The increase in earnings was partially offset by a non-recurring pre-tax loss recognized related to the sale of electricity generation and development business in the United States, which transaction closed in January 2026.

About OPG

As Ontario's largest and one of North America's 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 at www.opg.com.

OPG'S audited consolidated financial statements and Management's Discussion and Analysis as at and for the year ended December 31, 2025, 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