1. OPG's Contribution to Ontario's Energy Needs: Performance, Projects and Priorities
Pierre Charlebois
Chief Operating Officer: Ontario Power Generation
Canadian Manufacturers and Exporters
Navigating Ontario’s Energy Future
February 20, 2008
Mississauga, Ontario

2. OPG’s Contribution to Ont.’s Energy Needs current performance
OPG Profile
OPG’s Contribution to Ont.’s Energy Needs
current performance
environmental contribution
OPG’s Contribution Going Forward
new hydro projects
nuclear refurbishment
new build nuclear
OPG and Financial Sustainability
Priorities

3. OPG: Profile Owned by Province of Ontario
Produces about 70% of electricity consumed in Ontario
In-service capacity: 22,147MW
64 Hydroelectric stations: 6,956 MW
10 Nuclear Units: 6,606 MW
5 Fossil Stations: 8,578 MW
Approximately 11,500 employees
Generating Facilities

4. Safety: OPG’s Fundamental Value
In 2007, OPG achieved its best workplace safety performance in its history
CEA Silver Safety Excellence Award for 2005 and 2006
Numerous Safety Milestones achieved at OPG sites

5. Operational Performance: Darlington
Darlington Unit 2
Performance recognized worldwide
Most improved performance -- INPO
Darlington units in top quartile
among CANDU units
Approx. 90% unit capability in 2007
Major planned outages completed on,
or ahead of, schedule
4 million hours worked without a
lost time injury
Darlington Unit Capability

6. Operational Performance: Pickering
Pickering A
1.5 million hours without lost time injury
Decision to shut down Units 1 & 4 (June 2007) to modify backup electrical system negatively affected production
Pickering B:
Inspection completed in 2006 on 1,554 fuel channels
4 million hours without lost time injury
Production down slightly during 2007
Pickering A & B site
2007: Corporate Habitat of the year
5,000 trees planted over past four years
Pickering A Employees
Pickering B Employees

7. Operational Performance: Hydroelectric
Availability
Availability well above 90%
-- best since 1984
-- top quartile industry performance
Upgrades have added 427 MW since 1992…
…this will increase to 490 MW by 2012
GOOD
100 50 %
92.9
92.4 93
94.2
2007
2006
2005
2004
Q1-Q3
Chats Falls – 75 years of service
Beck Hydroelectric Complex

8. Operational Performance: Fossil
Excellent performance during summer
all 16 units in southern Ontario
operating in June heatwave
satisfied 25%-30% of Ont. demand
in early August
Best reliability since 2000
OPG will continue to operate its coal-plants
efficiently and responsibly until their
closure in 2014
Forced Outages
GOOD
20.0
10.0
0.0 %
11.2
14.1
15.9
18.7
2007
2006
2005
2004
Q1-Q3
Nanticoke –35 years of service
Lennox – 30 years of service

9. Public Perception in Ontario of Electricity Generation Sources
Source: Ipsos-Reid July 2007

10. Typical Summer Day (June 21, 2007)
25000
20000
Non-OPG Gas
OPG Coal
Lennox GS
Other Oil and Gas
15000
OPG Coal
Other Peaking Hydro
OPG Peaking Hydro MW
OPG Peaking Hydro
Wind
Bruce Nuclear
10000
Bruce Nuclear
OPG Nuclear
OPG Base Hydro
5000
OPG Nuclear
OPG Baseload Hydro 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hours

11. Fossil Flexibility: Nanticoke GS Example
Dispatches received by Nanticoke GS in 2007
Fossil plants can start, stop & change output more quickly than most other generation sources
Ideal for meeting minute-to-minute changes in demand and peak electricity demand periods
In 2007, Nanticoke received over 175,000 dispatches
Over 146,000 were “changes in direction” to reduce or increase output
This is impressive performance for a station such as Nanticoke:
3,920 MW
8 units (over 600,000 HP per unit)
200,000
Nanticoke G1 -- January 19, 2008
175,116
146,602
150,000
100,000
50,000
# Dispatches on this
day for this unit: 191
Unit responds very quickly to
fast-changing dispatch pattern.
Total
Dispatches
Changes in
Dispatch Direction

12. Emission Rate (Gigagrams/TWh-net)
OPG’s Environmental Performance: SO2 and NOx Fossil Emission Rates
14.00
Low Sulphur Coal
Introduced In 1980s
12.00
SO2 Rate
10.00
2 FGD systems at
Lambton: 1994
8.00
Lennox GS converts
from oil to gas:
Emission Rate (Gigagrams/TWh-net)
6.00
4.00
NOx as
NO2 Rate
2.00
New Lower NOx Burners
Installed 1997 thru 2003
2003: 4 SRCs installed
0.00
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007*
Year
*approximate estimate for 2007

13. OPG’s Environmental Performance Sources of CO2 in Ontario (2004)
2.6%
4.4%
0.5%
4.6%
1.9%
OPG accounts
for 15.5% of
CO2 produced
in Ontario
15.5%
OPG
4.3%
0.3%
Transportation
Stationary
34.4%
Combustion
- Manufacturing
12.0%
0.3%
8.0%
0.5%
Stationary
10.6%
Combustion
- Agriculture &
Stationary
Forestry
Combustion
- Residential

14. OPG’s Environmental Performance: Biomass Testing
Biomass provides an option for reducing net CO2
OPG is currently testing biomass co-firing with coal
Biomass fuels being used:
wood pellets,
agricultural by-products;
milling by-products
Nanticoke testing produced electricity to power 1,000 households for one month
OPG is host for provincial Atikokan Biomass Energy Centre
Nanticoke GS

15. OPG’s Environmental Performance: GHG Management
Increase generation from nuclear and hydroelectric plants
Promote energy efficiency and GHG reductions at plants
Increase use of biofuels to displace coal
Expand biodiversity program as a GHG mitigation and adaptation strategy
Research impacts of climate change on our existing and future operations

16. New Generation Projects: Niagara Tunnel
10.4 KM long
1.6 TWh average annual energy
Over 1,600 metres excavated
Design build approach reduces
OPG financial risk
Contractor has extended the completion date

17. New Generation Projects: Lac Seul
12.5 MW
Located in Northwest Ontario
Design-Build arrangement with contractor reduces OPG’s financial risk
Contractor has extended completion date
Lac Seul Powerhouse: Fall 2007

18. Proposed New Hydroelectric Projects
Lower Mattagami
Definition stage
Consultations continuing with First Nations
Study process required under CEAA regulations
Small Hydro Projects Approved by OPG Board
Redevelopment of Upper Mattagami hydro stations
Redevelopment of Hound Chute on the Montreal River.
Expansion of Healy Falls GS
Ont. Govt. directive to OPA in Dec 2007
allows OPG to move forward on these projects
Potential New Capacity – 500 MW
Smoky Falls: Lower Mattagami
Hound Chute Generating Station
Mattagami Lake Control Dam

19. New Generation Projects: Portlands Energy Centre
Summer 2006
Located in Toronto
550 MW
On schedule/On budget
First power in 2008
Fully operational by 2009
November. 2007

20. Potential Gas Opportunities: Lakeview Site
Lakeview Station shut down in 2005
Demolition
OPG is exploring potential development of gas-fired facility at the site
Lakeview station prior to demolition

21. Pickering B Refurbished Pickering B Not Refurbished
IPSP - 10,000 MW of Nuclear Power through Replacement and/or Refurbishment
Pickering B Refurbished
Pickering B Not Refurbished
Add over 6000 MW of fossil generation to be removed in 2014

22. Nuclear Refurbishment
Darlington
Pickering B
Pickering B
Plant condition assessment
Preliminary cost estimates on construction
Independent integrated safety review -- continuing
CNSC to provide feedback in late 2008
OPG submits EA Study Report to CNSC (Dec )
Management will make a recommendation to the Board
Solid business case is a prerequisite.
Darlington
Work on the refurbishment business case to start in 2008.

23. Nuclear New Build Q1 2007 EA support initiatives underway Q2 2007
Project Description filed
Q3 2007
new build planning continues, including public consultation
OPG/Bruce Power joint assessment of potential nuclear technologies
Province’s technology assessment
Q4 2007
Phase 2 community information sessions – 200 individuals attended
over 1,200 individuals reached during the year through OPG communications initiatives
Q1 2008
CNSC requests federal Environment Ministry to refer EA to a review panel.
Darlington Site

24. OPG Helps Moderate Electricity Prices
¢/kWh
7.2 ■
4.9
4.6
2006
~ 4.6
2007
5.1
2005
Ontario Market Price
OPG’s Average Price
Difference between Market price & OPG’s price
~ $3 billion
OPG’s regulated rates were set in 2005
ROE was set at 5%
OEB hearings planned in 2008 for rate adjustment

25. Focus on Financial Sustainability
Early Nov. 2007: OPG conducts pre-submission stakeholder consultation to discuss business factors underpinning a proposal to increase rates for its regulated nuclear & baseload hydro output
Late Nov. 2007: OPG submits a rate application to the OEB
OPG seeks rate of return consistent with scope and type of business risks associated with reliably operating its regulated assets
If approved by OEB, the application will result in a 14% rate increase on output from OPG’s regulated assets
This will be OPG’s first rate increase in three years

26. Key Drivers of Rate Increase Application
Nuclear
Change in ROE and capital structure
Increased costs associated with the nuclear used fuel and decommissioning liability
Changes in Post Employment Benefit costs
Inflation and nuclear fuel costs
Projects:
Nuclear New Build
Nuclear Refurbishment Studies
Hydroelectric
Upgrade and rehabilitation of two older units at Sir Adam Beck I

27. Priorities Going Forward
Maintain strong performance
Continue to operate coal-fired stations in an efficient and environmentally responsible manner until their closure
Continue hydroelectric expansion program
Explore opportunities for gas-fired generation
Continue with nuclear new build process
“Time is of the Essence”
Achieve financial sustainability

28. OPG's Contribution to Ontario's Energy Needs: Performance, Projects and Priorities
Pierre Charlebois
Chief Operating Officer: Ontario Power Generation
Canadian Manufacturers and Exporters
Navigating Ontario’s Energy Future
February 20, 2008
Mississauga, Ontario