Ontario Power Generation Reports 2007 Financial Results
February 29, 2008
[Toronto]: Ontario Power Generation Inc. (“OPG” or the “Company”) today reported its financial and operating results for the year ended December 31, 2007. Net income for the year was $528 million compared to net income of $490 million for the year ended December 31, 2006.
“In 2007, safety performance was the best since the Company’s inception in 1999, and the performance of our generating stations improved significantly. Ensuring employee and public safety, and improving the performance of our existing assets are two important priorities. The reliability of our generating stations improved over the previous year with the exception of the Pickering A and B nuclear stations, where one-time events unfavourably affected production in 2007,” said President and CEO Jim Hankinson.Electricity generated in 2007 of 105.1 terawatt hours (“TWh”) was essentially equal to production of 105.2 TWh in 2006. Electricity production from OPG’s nuclear stations of 44.2 TWh in 2007 decreased from 2006 production of 46.9 TWh. Production at the Pickering A station decreased primarily as a result of a requirement to perform modifications to a backup electrical system, and repair work required due to a component failure during inspection. In addition, production at the Pickering B station during the first quarter of 2007 was affected by an inadvertent release of resin by a third party contractor from the water treatment plant into the demineralized water system. Hydroelectric production of 31.9 TWh was slightly lower than production of 33.3 TWh in 2006 due to lower water levels. Fossil production increased to 29.0 TWh in 2007 compared to 25.0 TWh in 2006, mainly as a result of lower generation from OPG’s nuclear and hydroelectric generating stations.
OPG received an average price of 4.6¢/kilowatt hour (“kWh”) for the output from all of its generating stations in 2007. This average price equalled that of 2006. These average prices received by OPG reflect regulated prices for production from its nuclear and baseload hydroelectric generating assets, and spot market prices, subject to a revenue limit, for the majority of its remaining production. The average Ontario electricity spot market price in 2007 increased to 5.1¢/kWh from 4.9¢/kWh in 2006.
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