OPG reports 2025 first quarter financial results

Secures Darlington SMR construction approval; explores Indigenous community-led Northern Ontario hydro opportunities; completes $1 billion green bond issuance

TORONTO, May 13, 2025 /CNW/ - Ontario Power Generation Inc. (OPG or Company) today reported its financial and operating results for the first quarter of 2025, with net income attributable to the Shareholder of $505 million, compared to $221 million for the same period last year.

Darlington New Nuclear Project Licence to Construct Approval

With the recent approval of the Darlington New Nuclear Project (DNNP) Licence to Construct by the Canadian Nuclear Safety Commission for one small modular reactor (SMR), OPG will now start the execution phase of Canada's first grid-scale SMR using the BWRX-300 technology, expecting to complete the construction by the end of the decade and connect the facility to the electricity grid by the end of 2030.

"Our success to date in delivering on the $12.8 billion Darlington Refurbishment Project has paved the way for new opportunities, including the DNNP," said Nicolle Butcher, OPG President and CEO. "A first for North America, this made-in-Ontario project showcases our domestic expertise to the world, and will drive economic growth while helping meet increasing energy demand."

As the first mover on SMRs, this project will create jobs for Ontario workers and contracts for Ontario's supply chains and will demonstrate their capabilities to the world while strengthening Canada's energy security. Over 80 per cent of the DNNP will be procured domestically, with a further 15 per cent sourced through Europe and Japan.

The total cost of the four-unit DNNP, including interest, cost escalation, and contingency, is currently estimated at approximately $20.9 billion. The first unit SMR is expected to cost $6.1 billion, along with systems and services that would be common to all four SMRs planned as part of the project of $1.6 billion. The total budget of $7.7 billion represents the release-quality estimate for both the first SMR and shared infrastructure. OPG and its project partners will continue to refine the total estimated project cost during the definition phase of the remaining three units, incorporating lessons learned from the construction of the first SMR and the Darlington Refurbishment Project.

As a rate regulated project, the recovery of the costs of the DNNP will be reviewed by the Ontario Energy Board in a future proceeding for OPG's regulated prices. The Province has also indicated that it is exploring potential financial policy tools that would benefit ratepayers. In parallel, OPG continues to explore optimal financing arrangements in support of funding requirements for the planned capital investments.

Greenfield Hydroelectric Development

OPG recently signed letters of intent with Taykwa Tagamou Nation (TTN) and
Moose Cree First Nation (MCFN) to work together on preliminary planning activities to inform an Indigenous community-led decision-making process on new hydroelectric development in the Moose River Basin.

This includes the proposed Nine Mile Rapids hydroelectric generating station and the Grand Rapids hydroelectric generating station, which would have a combined generating capacity of up to 430 megawatts (MW).

"We look forward to working in meaningful partnership with TTN and MCFN toward the next generation of hydroelectric in Northern Ontario," said Butcher. "These potential new waterpower projects would provide decades of affordable, reliable, domestically produced electricity to meet growing demand and deliver lasting economic benefits to local and Indigenous communities."

Green Bond Issuance

OPG issued $1 billion in green bonds in the first quarter, furthering its leadership in sustainable financing. In all, since 2018, OPG has issued green bonds totalling approximately $5.6 billion, including offerings by its subsidiaries.

Cedar Leaf Capital, Inc. (Cedar Leaf), Canada's first majority Indigenous-owned investment dealer, joined OPG's syndicate of dealers and served as co-manager on the most recent issuance.

"OPG remains the largest Canadian corporate issuer of green bonds and will use proceeds of this issuance to fund a range of low-carbon energy projects," said Butcher. "The opportunity to work with Cedar Leaf is in keeping with our Reconciliation Action Plan commitment to partner with Indigenous communities and businesses to advance meaningful and tangible economic reconciliation."

Strong Canadian Supply Chain

With more than 90 per cent of its goods and services procured from Canadian suppliers for OPG's nuclear and Ontario hydroelectric business, OPG is a major contributor to Ontario's supply chain and economy. OPG continues to strengthen local procurements and identify alternate supplier relationships to mitigate the supply chain risks and broader potential economic impacts associated with changing trade conditions.

Net income attributable to the Shareholder

Net income attributable to the Shareholder increased by $284 million for the first quarter of 2025, compared to the same period in 2024. The increase was primarily attributable to higher earnings from the Regulated – Nuclear Generation business segment as a result of higher electricity generation, and lower operating, maintenance and administration expenses due to fewer planned cyclical outage activities.

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.

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, 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