1. OPG Update John Murphy Executive Vice President -- Hydro Ontario Power Generation to the NYPA/OPG Joint Works Committee Sir Adam Beck GS September 29, 2006

2. OPG Profile Generated 108.5 TWh in 2005
Lambton GS
Pickering B GS
Beck 2 GS
Generated TWh in 2005
53.9 TWh in first 6 months 2006
Produces approx. 70% of Ontario’s electricity generation
Employs approx. 11,000 employees
Operates:
Three nuclear stations (10 operating units, total)
Five fossil-fuelled stations
64 hydroelectric stations
Capacity: 22,173 MW (at end of 2005)

3. OPG Generation Performance
Electricity Production
TWh
45.0
32.6
30.9
108.5
42.3
35.7
27.0
105.0
2005
2004
Fossil
Hydro
Nuclear
23.9
17.7
12.3
Q1-Q
53.9

4. OPG Financial Performance
2005
2004
500
450
400
350
300
250
200
150
100 50
Net Income ($millions)
$366
$342
$42
Q1-Q2 2006

5. Hydroelectric Profile
RH Saunders GS
Ragged Rapids GS

6. OPG’s Management of Existing Hydroelectric Assets
Graphs show number of OPG hydroelectric units in each quartile (Q) in their peer group.
EUCG Benchmarking Results (2003) – Includes total of 764 units from North American utilities
Independent benchmarking studies show plant performance and management systems are strong within the industry
OPG is investing an average of $95 million per year to maintain and enhance hydroelectric capability
OPG increased existing plant capacity by 400 MW since 1992.
Further upgrades will add about another 150 MW by 2015

7. Hydro’s Safety Performance
Hydro has surpassed 1 YEAR (> 1.63 million hours) without a lost time accident.
Other injury-free milestones:
Niagara Plant Group – 2.8 years
Evergreen Energy – 6.1 years
Northwest Plant Group – 6.3 years
Ottawa/St. Lawrence Plant Group – 5.8 years
Some work centres have achieved > 11 years without a lost time injury.
OPG received the Electrical and Utilities
Safety Award Gold Award in 2005

8. Keys to Safety Success
OPG and Hydro have established a high performance safety culture
Safety more than just a top priority…it’s a core value
Clear goals & objectives have been established
Ultimate goal of “Zero Injuries”
Visible commitment to safety…from board room to the shop floor
Legislative compliance seen as the “minimum” standard
Robust Safety Management Systems (based on OHSAS 18001) ensure continuous improvement
Engaged employees
Strong “partnership” approach to health & safety management
Effective Joint Health & Safety Committees
There is no “magic bullet” to building an effective safety culture. You have probably heard many of these ideas discussed in the past. However, we have found that sustained, deliberate action in each of these areas yields results.
These 5 points will identify “what” we have done. Additional presentation slides will focus on “how” we did it:
Establish Safety Goals and Objectives – and even more importantly, moving safety from a “priority” to a “value”
Ensure Senior Management Commitment – there are a number of visible activities that indicate to employees that management is walking the walk
Move beyond Legislative Compliance - compliance is necessary, but only the beginning.
Engage Employees – more and more, we are speaking about safety in a way that is meaningful to employees; personalizing safety.
Partner with Stakeholders – we are a unionized company, but partnerships include employees, their representatives and our regulators as well

9. Hydroelectric Supply Initiatives: Niagara Tunnel
Outlet
Intake
Sir Adam Beck Pump Generating Station
Sir Adam Beck GS No.2
Sir Adam Beck GS No.1

10. Hydroelectric Supply Initiatives: Niagara Tunnel (cont’d)
OPG’s largest current capital project
Diverts additional water to Beck hydroelectric stations
500 cubic metres of water per second
1.6 billion KWh average per year
10.4 km long
Construction work underway
Expected completion: late 2009
90 year life-expectancy
Project is on schedule and within budget
OPG is project manager
Tunnel Boring began Sept 1
Niagara Tunnel Boring Machine, “Big Becky”

11. Hydroelectric Development Potential in Ontario
OPG will pursue economically viable hydroelectric developments
Theoretical potential ~ 12,000 MW
Practical/economic potential ~ 5,000 MW
Most potential sites are in Northern Ontario and are restricted by existing government commitments
Key issues:
First Nations participation
Transmission requirements
Restrictions on Northern & Moose Rivers development
Environmental considerations
OPG works with govt. agencies & stakeholders to address existing development restrictions, transmission constraints and environmental considerations.

12. OPG’s Hydroelectric Development Projects in Northern Ontario
Lower Mattagami River Development (450 MW)
Replace existing 75-year Smoky Falls station with new larger station
add a generating unit to each of three existing stations
Lac Seul Development (12.5 MW)
Construction underway --completion expected late ‘07
Upper Mattagami River Development (35MW)
Replacing 3 existing old stations with 3 larger stations -- construction expected to start in mid 2007
Hound Chute Redevelopment
Replace existing 95-year old station with a new larger (9 MW) station
Other Projects
Little Jackfish River Development (132 MW)
Mattagami Lake Control Dam (5 MW) with Mattagami First Nation
Long Lake Control Dam (5-6 MW)
Abitibi River sites with Taykwa Tagamou Nation
Lac Seul Construction
Lower Mattagami River Development
Replace existing 75-year old Smoky Falls station with a new larger station
add an extra generating unit to each of three existing stations (Little Long, Harmon and Kipling)
Net increase in generating capacity is 450 MW
Construction expected to start in late 2007
Lac Seul Development
12.5 MW addition to existing Ear Falls station
Construction started in Jan/06
Expected completion Nov/07
Upper Mattagami River Development
Replacing 3 existing old stations (Wawaitin, Sandy Falls, Lower Sturgeon) with 3 larger stations producing 35 MW
Started pre-qualification process for equipment suppliers and contractors
Construction expected to start in mid 2007
Hound Chute Redevelopment (near Cobalt)
Replace an existing 95-year old station (Hound Chute) with a new larger (9 MW) station
Other Projects
Little Jackfish River Development (132 MW)
Mattagami Lake Control Dam (5 MW) with Mattagami First Nation
Long Lake Control Dam (5-6 MW)
Abitibi River sites with Taykwa Tagamou Nation. The project is a 25 MW greenfield development
Smoky Falls GS

13. First Nations Participation
Active involvement by First Nations in hydroelectric developments
includes potential equity participation.
Recent OPG Agreements signed with First Nations, including:
Mattagami FN
Taykwa Tagamou Nation
Lac Seul First Nation
Long Lake #58 First Nation
These agreements are critical to ongoing hydro-electrical operations and future hydroelectric development
Active involvement by First Nations in hydroelectric developments includes potential equity participation.
Recent OPG Agreements signed with First Nations, including:
Memorandum of Understanding with Mattagami FN to explore the development of the Mattagami Lake Control Dam
Memorandum of Understanding with Taykwa Tagamou Nation to explore developments on the Abitibi River
Agreement in Principle with Lac Seul First Nation to resolve past grievances
Final Settlement Agreement on past grievances with the Long Lake 3%8 First Nations
These agreements are helping to lay the foundation for future hydroelectric development in Northern Ontario.
Mattagami First Nation Council and OPG representatives

14. Timeline of OPG’s Existing Hydroelectric Projects

15. Timeline of OPG’s Greenfield Hydroelectric Projects

16. Other OPG Supply Initiatives: Portlands Energy Centre
Toronto needs extra 500 MW by 2010
PEC is a 550 MW high efficiency combined-cycle facility:
co-generation capable
fuelled by natural gas
Located in Toronto’s Portlands area
OPG/TransCanada Energy Ltd. are partnering to build PEC
Environmental assessment and approvals in place
Accelerated Clean Energy Supply contract signed with Ontario Power Authority
Construction underway
First power in 2008; fully operational by 2009
capital cost: approx. $730 million
Site Clearing Underway
PEC: Artist’s Conception

17. Nuclear Refurbishment
In June, Ont. Govt. Directed OPG to
Undertake feasibility studies re. refurbishment of units at Pickering B & Darlington sites
Begin Environmental Assessment (EA) on Pickering B refurbishment as part of this process
OPG is now assessing the business case for refurbishing Pickering B
OPG’s Plant Life Extension Project Division created in February 2006
On June 15, OPG submitted letter of intent and project description to CNSC re. potential Pickering B refurbishment
EA for potential Pickering B refurbishment is proceeding as part of business case
Business case study to be reviewed by OPG management and Board in 2008
Solid business case must exist before any decision to refurbish Pickering B (and eventually Darlington) is made
Pickering B

18. New Nuclear In June, Ont. Govt. also Directed OPG to:
Begin federal approvals process for new nuclear units at an existing facility
Includes an environmental assessment
OPG is developing plan of action to meet this directive
OPG believes its Darlington nuclear site best location for new build
Experienced workforce
Best-performing multi-unit CANDU station in Canada in 2004 and 2005
Strong community support
Room to build on site
On Sept. 22, OPG filed application for a Site Preparation Licence for new nuclear units at Darlington
formally starts the federal approvals process with the Canadian Nuclear Safety Commission
Darlington Nuclear Generating Station
Darlington

19. OPG’s Fossil-Fuelled Stations
Ontario Govt. responded in June to the Ontario Power Authority’s Supply Mix Report (Dec. 2005)
The Govt. has asked OPA to determine how best to replace coal-fired generation in Ontario at the earliest possible time
As a result…OPG’s coal-fired stations to continue operating beyond 2009
OPG to meet all environmental regulations governing the operation of its coal-fired stations
OPG will make additional, prudent investments in environmental equipment and systems to further improve environmental performance of its coal-fired plants
Lambton GS
Nanticoke GS

20. Lakeview Stack Demolition
Lakeview Generating Station in Mississauga:
in service:1961
capacity 1,140 MW
lifetime output: 214 TWh
275 employees
permanently shut down in April 2005
June 12, 2006: stack demolition
Site now being cleared of remaining equipment
Potential for future high-efficiency gas plant at the site

21. Earning the Trust and Confidence of our Stakeholders is Essential to our Operations
Ontario Premier Dalton McGuinty at TBM Launch
Kakabeka Falls GS, 100th Anniversary Open House
OPG receives Pickering 2005 Local Business Award

22. Summary OPG Priorities Going Forward
Continuing performance improvement
Contribute to Ontario’s electricity supply through new power initiatives
Focus on expanding and developing hydroelectric capacity
Implement Ont. government directives on nuclear refurbishment and new build
Operate coal plants efficiently and in an environmentally responsible manner until they are closed