Company type | Crown corporation |
---|---|
Industry | Electricity generation |
Founded | 1999 |
Headquarters | Intact Centre 700 University Avenue Toronto, Ontario M5G 1X6 |
Key people | Wendy Kei, Chair Ken Hartwick, President and CEO |
Products | Electricity |
Revenue | $5.53 billion CAD (2018) [1] |
$1.20 billion CAD (2018) [1] | |
Owner | Government of Ontario |
Number of employees | 10,000 (2019) |
Subsidiaries | Atura Power Canadian Nuclear Partners Inc. Eagle Creek Renewable Energy Ivy Charging Network Laurentis Energy Partners PowerON |
Website | opg |
Ontario Power Generation Inc. (OPG) is a Crown corporation [2] [3] and "government business enterprise" [4] that is responsible for approximately half of the electricity generation in the province of Ontario, Canada. [5] It is wholly owned by the government of Ontario. [6] Sources of electricity include nuclear, hydroelectric, wind, gas and biomass. Although Ontario has an open electricity market, the provincial government, as OPG's sole shareholder, regulates the price the company receives for its electricity to be less than the market average, in an attempt to stabilize prices.[ citation needed ] Since 1 April 2008, the company's rates have been regulated by the Ontario Energy Board.
In June 2019, it was announced that a new corporate campus would be built in Clarington, Ontario, that will also house Ontario Power Generation's headquarters. [7] In February 2023, it was announced that OPG would instead purchase the former head office building of General Motors Canada in Oshawa, Ontario, for their new headquarters, planning to open by 2024. [8]
Ontario Power Generation was established in April 1999 as part of plans by the Progressive Conservative government of Premier Mike Harris to privatize the assets of Ontario Hydro and deregulate the province's electricity market. OPG was one of the five successor corporations to Ontario Hydro and assumed ownership of all generating stations.
Wendy Kei is the chair of the board of directors. She was appointed as chairman on 27 June 2019. [9]
Ken Hartwick is the president and chief executive officer of OPG. He was appointed to this position on 1 April 2019, when the previous president and CEO, Jeffrey J. Lyash, resigned.[ citation needed ]
Other current members of the board include John Herron, Selma Lussenburg, Scott McDonald, Jill Pepall, Jim Reinsch, James Sheppard, Anju Virmani, Tracy Primeau and Mary Filipelli. [10]
The financial situation at Ontario Power Generation has improved significantly since 2003. Its profits for 2005 were $366 million, and its credit rating was upgraded. In July 2006, Liberal Energy Minister Dwight Duncan described OPG's turnaround as "[o]ne of the untold stories of the last two years". [11]
On the local public relations side, OPG has won many awards for its performance as a "good corporate citizen". [12] Most recently, OPG was named for the fourth year in a row to the Corporate Knights Top 50 Best Corporate Citizens in Canada. [13] OPG regularly sponsors community events across the province and houses wildlife trails in the exclusion zones around its nuclear stations in Durham Region. The company's annual employee charity campaign has raised millions of dollars for charities across Ontario. In October 2008, OPG was named one of "Canada's Top 100 Employers" by Mediacorp Canada Inc., and was featured in Maclean's . Later that month, OPG was also named one of Greater Toronto's Top Employers, which was announced by the Toronto Star . [14]
OPG regularly reports on its operational, safety and environmental record. The company publishes quarterly reports summarizing its performance in these areas.
OPG purchased 9 million shares (1.5%) of former Crown corporation Hydro One, another Ontario Hydro successor company, in April 2016. [15]
OPG is the owner of four nuclear power plants. It directly operates Pickering Nuclear Generation Station in Pickering, Ontario and Darlington Nuclear Generating Station in Courtice, Ontario. [16] OPG also owns the two nuclear power plants that make up the Bruce Nuclear Generating Station on Lake Huron in western Ontario, which are operated by Bruce Power under a long-term lease.
OPG also operates three facilities for the interim management of nuclear waste generated by OPG's 10 nuclear reactors and Bruce Power's eight nuclear reactors. [17] The company is proposing to construct and operate a deep geologic repository (DGR) on the Bruce Nuclear site, adjacent to its present Western Waste Management Facility. The repository would provide permanent storage of low- and intermediate-level radioactive waste produced from the operation of the Bruce, Pickering, and Darlington nuclear generating stations. In 2005, OPG initiated the regulatory approval process.
Following a comprehensive environmental assessment (EA) process and two rounds of public hearings in front of a federal joint review panel (JRP), on 6 May 2015 the JRP issued the EA Report and recommended the approval of OPG's DGR to the federal government.
In February 2016, the Federal Minister of the Environment and Climate Change delayed a decision on OPG's DGR, causing a pause in the timeline for the EA decision to be issued. While the JRP had recommended to the federal government the project move forward based on the strong technical safety case, the Minister requested OPG provide further information. OPG has committed to provide the requested studies and additional information by the end of 2016.
OPG has also begun the process of building up to four new nuclear units at the site of its Darlington Nuclear Generating Station but in October 2013, the province of Ontario declared that the Darlington new build project would not be part of Ontario's long-term energy plan, [18] citing the high capital cost estimates and energy surplus in the province at the time of the announcement.
In January 2016, the province of Ontario approved plans [19] to pursue continued operation of the Pickering Nuclear Generating Station to 2024.
OPG will work with the Ministry of Energy, the Independent Electricity System Operator and the Ontario Energy Board to pursue continued operation of the Pickering Station to 2024. All six units would operate until 2022; two units would then shut down and four units would operate to 2024. Extending Pickering's operation will ensure a reliable, clean source of base load electricity during refurbishment of the Darlington Nuclear Generating Station and the initial Bruce Nuclear refurbishments.
Any plan to extend Pickering's life requires approval from the Canadian Nuclear Safety Commission (CNSC). OPG is currently working on a licence application to the CNSC for approval in 2018.
On 2 December 2021, OPG announced a partnership with GE Hitachi Nuclear Energy to deploy a small modular reactor (SMR) at the Darlington new nuclear site, the only site in Canada currently licensed for a new nuclear build. [20] The project is expected to be completed as early as 2028.
OPG has made some investments in alternative electricity generation.
By 2014, OPG had stopped burning coal to generate electricity. Thermal electricity-generating stations were traditionally coal-fired, creating problems caused by pollution. While the Nanticoke Generating Station, on Lake Erie in Haldimand County, Ontario, and the Lambton Generating Station were shut down, OPG did convert two other coal-fuelled power plants. Atikokan Generating Station in Atikokan, Ontario, was converted in 2012 to burning steam-treated wood pellets or "biomass" as OPG refers to it. "Biomass wood pellets are a sustainable fuel recognized as beneficial to climate change mitigation, as identified in the Biomass Sustainability Analysis Report by the Pembina Institute", according to OPG. [21] The company says that this generating station is "North America's largest 100 per cent biomass-fuelled power plant". [22] Thunder Bay Generating Station in Thunder Bay, Ontario, was converted to using "advanced" biomass in 2014. "It is a solid biomass fuel ... has higher energy density and is hydrophobic (repels water) allowing it withstand the elements while being stored outside," according to OPG. [23]
In March 2016, OPG and partners SunEdison Canadian Construction LP and Six Nations Development Corporation were selected by the Independent Electricity System Operator (IESO) to develop the Nanticoke Solar Facility, a 44 megawatt (MW) solar farm on and near the Nanticoke Generating Station site on Lake Erie. [24]
The company is proud of its achievements in reducing pollution. "Now, together with a diverse fleet that includes 65 hydroelectric stations and two nuclear stations, OPG's power is more than 99 per cent free of smog and greenhouse gas emissions." [25]
Prior to shutting down its coal-fueled generating stations, OPG attracted considerable controversy for the operation of coal-fired generating stations, which ranked among Canada's largest individual air pollution sources.[ citation needed ] This was mostly because Nanticoke housed a massive 3,900 MW of generation capacity in one site: it produced "the most pollution in one site" despite being a reasonably clean plant per megawatt of power. [26] Nanticoke Generating Station was North America's largest coal-fired generating station and the single largest air pollution source for southern Ontario and northern New York state, attracting considerable criticism from environmentalists and legislators in both jurisdictions. OPG's Lambton Generating Station was the second largest air polluter in the province. The Liberal government of Dalton McGuinty came to power in 2003 with a promise to phase out coal generation by 2007. [27] However, for various operational and demand reasons this was not possible until 2014, when the last coal was burned in OPG's stations.
The company also endured significant criticism concerning the slow return to operation of some of its nuclear generating stations which had been shut down by the Northeast blackout of 2003. The problem was that all but one of the reactors were tripped and allowed to poison out, preventing an early reconnection to the electricity grid. Once shut down, all nuclear reactors take several days to return to service.
Another source of criticism was the extended and expensive refit to the reactor Unit 4 at the Pickering A Nuclear Station. In late 2003, the incoming Liberal government fired the three most senior executives at OPG on the heels of a report that the retrofit of a single reactor at the Pickering nuclear plant had come in significantly over budget and three years behind schedule. The government also accepted the resignation of all remaining board members. Management underestimated the amount of work and complexity of the Unit 4 refurbishment project and failed to do a complete scope analysis before starting on the project. [ citation needed ] Due to the uproar over the large cost overruns and delays, an independent review committee was commissioned to examine the future role of OPG in the electricity sector; the future structure of OPG; the appropriate corporate governance and senior management structure; and the potential refurbishing of Pickering A Units 1, 2, and 3. Former federal Finance Minister and Deputy Prime Minister John Manley chaired the review committee. Peter Godsoe, Chairman of the Bank of Nova Scotia, and Jake Epp, a former federal Cabinet Minister, Chair of the Pickering A Review Panel, and interim Chairman of OPG, also sat on the committee. [28]
The experience of refurbishing Pickering A Unit 1 was significantly different with a much tighter adherence to schedule and budget. Unit 1 was returned to service in November 2005 providing 542 MW of generating capacity for Ontario's electricity system. It was decided that Pickering Units 2 and 3 would not be restarted as the business case could not be made.
In early December 2015, Ontario's Auditor General pointed out that OPG was importing wood products from Europe to burn at the Thunder Bay station "pushing the cost of the electricity it generates to 25 times higher than other biomass generators", [29] or $1,600 per MWh. Subsequently, Ontario's Development and Mines Minister Michael Gravelle stated that OPG was seeking a local company to produce the biomass fuel. [30]
Considering the ever-increasing cost of electricity to Ontario consumers, the hiring of CEO Jeffrey Lyash in the summer of 2015 created some criticism when it was revealed that Lyash would earn $775,000 per annum and that could increase to $1.55 million with bonuses if performance targets are met. [31]
On 10 June 2019, it was announced that a new corporate campus would be built in Clarington, Ontario, that will also house Ontario Power Generation's headquarters. [32]
On 13 February 2023, OPG announced they completed a deal to purchase the former head office building for General Motors of Canada in Oshawa, Ontario, for their new headquarters, with plans to open in 2024. [33] Original plans called for a new building to be constructed in Clarington, Ontario, at the existing Darlington Energy Complex. The decision was made to retrofit the empty building for economic and sustainability reasons. [34] Clarington Mayor Adrian Foster issued a statement, saying he was "deeply disappointed" with the decision not to build in Clarington. [35] Oshawa Mayor Dan Carter welcomed the news, saying he was "thrilled to welcome" OPG to Oshawa. [36]
OPG owns and operates generating plants that draw from nuclear, hydro-electric, combined gas, biomass, solar and some wind. In 2018, it generated about half of the electricity in Ontario or 74.0 terawatt hours (TWh).
Source | Stations | Capacity (MW) | 2015 output (TWh) |
---|---|---|---|
Nuclear | 2 | 5,728 | 40.9 |
Hydroelectric | 66 | 7,480 | 29.8 |
Thermal | 3 | 2,305 | 2.5 |
Biomass | 1 | 205 | 0.0 |
Wind | 1 | 7 | 0.0 |
Solar | 1 | 44 | 0.0 |
Total | 74 | 16,295 | 74 |
Roughly 60 percent of Ontario's electricity is accounted for by three nuclear power plants: Pickering, Darlington and Bruce. No fatal accidents related to nuclear power have occurred in Ontario.
Nuclear | Hydro-electric | Thermal | Wind |
---|---|---|---|
| Large
Small
Altogether there are 29 plants producing 127 MW of power. |
Defunct
|
|
On 25 June 2019, Ontario Power announced the $1.12 billion purchase of Cube Hydro, which includes 19 hydroelectric power plants in New York, Pennsylvania, Virginia, West Virginia and North Carolina. [38]
The CANDU is a Canadian pressurized heavy-water reactor design used to generate electric power. The acronym refers to its deuterium oxide moderator and its use of uranium fuel. CANDU reactors were first developed in the late 1950s and 1960s by a partnership between Atomic Energy of Canada Limited (AECL), the Hydro-Electric Power Commission of Ontario, Canadian General Electric, and other companies.
Clarington is a lower-tier municipality in the Regional Municipality of Durham in Ontario, Canada. It was incorporated in 1973 as the town of Newcastle with the merging of the town of Bowmanville, the Village of Newcastle and the townships of Clarke and Darlington, and was established on January 1 1974. In 1993, the town was renamed Clarington, a blending of the names of the two former townships. Darlington today is largely suburban, while Clarke remains largely rural. Bowmanville is the largest community in the municipality and is the home of the municipal offices.
The Regional Municipality of Durham, informally referred to as Durham Region, is a regional municipality in Southern Ontario, Canada. Located east of Toronto and the Regional Municipality of York, Durham forms the east-end of the Greater Toronto Area and part of the Golden Horseshoe region. It has an area of approximately 2,500 km2 (970 sq mi). The regional government is headquartered in Whitby.
Pickering Nuclear Generating Station is a Canadian nuclear power station located on the north shore of Lake Ontario in Pickering, Ontario. It is one of the oldest nuclear power stations in the world and Canada's third-largest, with eight CANDU reactors. Since 2003, two of these units have been defuelled and deactivated. The remaining six produce about 16% of Ontario's power and employ 3,000 workers.
Ontario Hydro, established in 1906 as the Hydro-Electric Power Commission of Ontario, was a publicly owned electricity utility in the Province of Ontario. It was formed to build transmission lines to supply municipal utilities with electricity generated by private companies already operating at Niagara Falls, and soon developed its own generation resources by buying private generation stations and becoming a major designer and builder of new stations. As most of the readily developed hydroelectric sites became exploited, the corporation expanded into building coal-fired generation and then nuclear-powered facilities. Renamed as "Ontario Hydro" in 1974, by the 1990s it had become one of the largest, fully integrated electricity corporations in North America.
Bruce Nuclear Generating Station is a nuclear power station located on the eastern shore of Lake Huron in Ontario, Canada. It occupies 932 ha of land. The facility derives its name from Bruce Township, the local municipality when the plant was constructed, now Kincardine due to amalgamation. With eight CANDU pressurized heavy-water reactors, it was the world's largest fully operational nuclear generating station by total reactor count and the number of currently operational reactors until 2016, when it was exceeded in nameplate capacity by South Korea's Kori Nuclear Power Plant. The station is the largest employer in Bruce County, with over 4000 workers.
Darlington Nuclear Generating Station is a Canadian nuclear power station located on the north shore of Lake Ontario in Clarington, Ontario. It is a large nuclear facility comprising four CANDU nuclear reactors with a total output of 3,512 MWe when all units are online, providing about 20 percent of Ontario's electricity needs, enough to serve a city of two million people. The reactor design is significantly more powerful than those used in previous CANDU sites at Pickering and Bruce, making its 4-unit plant the second-largest in Canada behind the 8-unit Bruce. It is named for the Township of Darlington, the name of the municipality in which it is located, which is now part of the amalgamated Municipality of Clarington.
The OPG 7 Gomberg Turbine was a Vestas model V80-1.8MW wind turbine in Pickering, Ontario. At the time of its construction, it was one of the largest wind turbines in North America, a 117-metre high wind machine commissioned in 2001 and designed to produce enough power to satisfy about 600 average households. This electricity was also emission-free.
The electricity sector in Canada has played a significant role in the economic and political life of the country since the late 19th century. The sector is organized along provincial and territorial lines. In a majority of provinces, large government-owned integrated public utilities play a leading role in the generation, transmission, and distribution of electricity. Ontario and Alberta have created electricity markets in the last decade to increase investment and competition in this sector of the economy.
The Lakeview Generating Station was an Ontario Power Generation coal-burning power station located in Mississauga, Ontario, Canada, in the Lakeview neighbourhood on Lakeshore Road just east of Cawthra Road. The former station, constructed in 1958–1962, had four smokestacks known as the Four Sisters; the eight boilers of the generating plant all 'twinned' their emissions into common stacks. The station was a landmark for years and was shut down in April, 2005, after 43 years of service. The four stacks, which could be seen from as far away as Burlington to the west and downtown Toronto to the east, were demolished on June 12, 2006. The rest of the building was demolished on June 28, 2007.
Nuclear power in Canada is provided by 19 commercial reactors with a net capacity of 13.5 gigawatt (GW), producing a total of 95.6 terawatt-hours (TWh) of electricity, which accounted for 16.6% of the country's total electric energy generation in 2015. All but one of these reactors are located in Ontario, where they produced 61% of the province's electricity in 2019. Seven smaller reactors are used for research and to produce radiopharmaceuticals for use in nuclear medicine.
The Nanticoke Generating Station was a coal-fired power station in Nanticoke, Ontario in operation from 1972 to 2013. It was the largest coal power station in North America and, at full capacity, it could provide 3,964 MW of power into the southern Ontario power grid from its base in Nanticoke, Ontario, Canada, and provided as much as 15% of Ontario's electricity.
The electricity policy of Ontario refers to plans, legislation, incentives, guidelines, and policy processes put in place by the Government of the Province of Ontario, Canada, to address issues of electricity production, distribution, and consumption. Policymaking in the electricity sector involves economic, social, and environmental considerations. Ontario's electricity supply outlook is projected to deteriorate in the near future due to increasing demand, aging electricity supply infrastructure, and political commitments, particularly the phase-out of coal-fired generation. Policymakers are presented with a range of policy choices in addressing the situation, both in terms of overall system design and structure, and specific electricity generating technologies.
Thunder Bay Generating Station is a defunct biomass-fired thermal power station owned by Ontario Power Generation ("OPG"). It is located on Mission Island in Thunder Bay, on the shore of Lake Superior.
Atikokan Generating Station is a biomass power plant owned by Ontario Power Generation (OPG) located 8 km (5 mi) north of Atikokan, Ontario. The plant employs 90 people. The Atikokan Generating Station began operation as a coal fired station in 1985 and underwent an overhaul in the autumn of 2003.
According to the International Hydropower Association, Canada is the fourth largest producer of hydroelectricity in the world in 2021 after the United States, Brazil, and China. In 2019, Canada produced 632.2 TWh of electricity with 60% of energy coming from Hydroelectric and Tidal Energy Sources).
Coal reserves in Canada rank 13th largest in the world at approximately 10 billion tons, 0.6% of the world total. This represents more energy than all of the oil and gas in the country combined. The coal industry generates CDN$5 billion annually. Most of Canada's coal mining occurs in the West of the country. British Columbia operates 9 coal mines, Alberta nine, Saskatchewan three and New Brunswick one. Nova Scotia operates several small-scale mines, Westray having closed following the 1992 disaster there.
The Nanticoke Solar Facility is a 44 MW solar power station in Nanticoke, Ontario, Canada. It is located on the site of the defunct Nanticoke Generating Station, which operated from 1972 to 2013 and was the largest coal-fired power plant in North America.
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: CS1 maint: archived copy as title (link)OPG is a Crown corporation that produces about half of the province's electricity.
Ontario Power Generation Inc. had a $259-million profit in its latest quarter, although the provincial Crown corporation continued to feel the impact of reduced demand for electricity.
The three Crown corporations that the province classifies as "government businesses enterprises" are the LCBO, Ontario Power Generation and Ontario Lottery and Gaming.