[cdn-nucl-l] ONTARIO POWER GENERATION REPORTS 2002 THIRD QUARTER EARNINGS

["Adam McLean" <adam.mclean@utoronto.ca>]

Posted on the OPG email news service on October 28, 2002 and at:
http://www.opg.com/ir/reports/q3_2002.pdf

Adam

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ONTARIO POWER GENERATION REPORTS 2002 THIRD QUARTER EARNINGS

[Toronto]: Ontario Power Generation Inc. (OPG) today reported its
financial
and operating results for the third quarter and first nine months ended
September 30, 2002. Earnings for the three months ended September 30,
2002 were $215 million or $0.84 per share, as compared with third
quarter
earnings in 2001 of $81 million or $0.32 per share. For the nine months
ended September 30, 2002, earnings were $61 million or $0.24 per share
compared to earnings of $200 million or $0.78 per share for the same
period
last year.
"OPG's third quarter earnings reflect open market prices for the summer
period and the impact of warmer than normal weather, and a favourable
generation mix related to higher nuclear and hydroelectric generation.
OPG is
mandated under its operating licence to rebate a significant portion of
its
revenues that were in excess of 3.8 cents per kWh, which will reduce the
impact of higher market prices on consumers," said OPG President and
CEO,
Ron Osborne.
"Our nine month results are below those of the same period last year
mainly due to restructuring charges, a provision on transition rate
option
contracts for industrial customers taken in the first quarter and
increased
expenditures related to Pickering A, partially offset by the impact of
higher
spot market prices and the gain on sale of the Mississagi River
stations," said
Osborne. OPG expects to begin commissioning the first unit at Pickering
A
nuclear generating station during the first quarter of 2003.
Peak demand in Ontario reached record levels during the third quarter
with a new peak of 25,414 MW being set on August 13. The benefits of
focussing on improved performance were demonstrated when our generating
assets responded to Ontario's increased electricity needs by producing 4
per
cent more electricity than in the third quarter of 2001. In particular,
the
performance of OPG's nuclear generating stations continues to improve,
achieving a forced outage rate of 1.7 per cent for the third quarter of
2002
compared to 1.9 per cent for the same period last year. For the nine
months
ended September 30, 2002, the forced outage rate was 2.3 per cent
compared to 3.0 per cent last year.
Ontario Power Generation is an Ontario based company, whose
principal business is the generation and sale of electricity to
customers in
Ontario and to interconnected markets. Our focus is on the risk-managed
production and sale of reliable electricity from our competitive
generation
assets. OPG's goal is to be a premier North American energy company,
while
operating in a safe, open and environmentally responsible manner.