POWER WITH PURPOSE

2016 SUSTAINABILITY REPORT 3 CONTENTS

04 Overview 72 Economic

• Our business • Financial strength

• Executive message • Generation and reliability

• About this report • Infrastructure investments

• Our approach to sustainability • Procurement and payments

• Key achievements in 2016 85 Appendices

26 Environment • Generation capacity and production • Environmental compliance • Sustainability performance • Protection of fish • GRI content index • Biodiversity and habitat stewardship

• Low-carbon future

• Nuclear emissions

• Waste management

• Resource use

49 Social

• Stakeholder and community engagement

• Indigenous engagement

• Health and safety

• Emergency preparedness and security

• People and culture

• Corporate citizenship

Front Cover | Construction of the Peter Sutherland Sr. Generating Station.

1 | Pickering Nuclear Generating Station. 2016 SUSTAINABILITY REPORT

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OVERVIEW OUR BUSINESS Ontario Power Generation (OPG) is an electricity generation company whose principal business is the generation and sale of electricity in Ontario. OPG was established under the Business Corporations Act (Ontario) and is wholly owned by the Province of Ontario. OPG was formed in April 1999 through the restructuring of Ontario Hydro’s integrated electricity business.

As at Dec. 31, 2016, OPG’s electricity generation portfolio had an in-service capacity of 16,177 megawatts (MW). Total electricity generation in 2016 was 78.2 terawatt hours (TWh). 1

OPG owns and operates two OPG and TransCanada Energy Ltd. OPG also owns two other nuclear IN-SERVICE ELECTRICITY nuclear generating stations, co-own the 550 MW Portlands generating stations, Bruce A GS CAPACITY PRODUCTION 65 hydroelectric generating Energy Centre gas-fired combined and Bruce B GS, which are leased stations, three thermal generating cycle GS. OPG and ATCO Power on a long-term basis to Bruce Dec. 31, 2016 2016 stations, and one wind power Canada Ltd. co-own the 560 Power Limited Partnership to turbine. OPG’s in-service capacity MW Brighton Beach gas-fired operate. The leased stations excludes 878 MW from the combined cycle GS. OPG’s 50 are not included in the generation Wind Thermal Wind Darlington Nuclear Generating per cent share of the in-service portfolio statistics set out in Thermal <0.1% 0.9% <0.1% Station (GS) on account of Unit 2 capacity and generation volume this report. 18.6% having been taken offline in 2016 of these co-owned facilities Hydro for refurbishment. In 2016, one is included in the generation All of OPG’s owned and co- 16,177 MW 40.8% 78.2 TWh owned generating facilities are Hydro new hydroelectric station was portfolio statistics set out in this Nuclear 46.0% under construction. report. OPG does not operate the located in Ontario, Canada. OPG’s 35.4% Nuclear co-owned stations. registered head office is located 58.3% at 700 University Avenue, Toronto, Ontario, M5G 1X6.

1 | DeCew Falls GS.

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OPG OPERATIONS

MOOSONEE ONTARIO

KENORA 1

TIMMINS ATIKOKAN THUNDER BAY OPG’s Role in the As a power producer, OPG offers Electricity Industry its generation into the real-time LEARN MORE energy market, or spot market, to be dispatched by the Independent The electricity industry is principally Ontario Electricity System SUDBURY Electricity System Operator NORTH BAY comprised of four components: (IESO). OPG operates under an OTTAWA generation, transmission, Information about Ontario’s electricity generation licence distribution, and marketing of electricity system is available issued by the Ontario Energy energy and other services in on the Ontario Ministry of Board (OEB). KINGSTON wholesale and retail markets. Energy’s website at www.energy.gov.on.ca and the Some generators are needed Generation is the production of IESO website at www.ieso.ca to produce a constant supply TORONTO electricity. Transmission is the of energy to meet basic energy NIAGARA FALLS transfer of electricity across needs (baseload generation), 1 | Sir Adam Beck II GS. high-voltage power lines from while others are needed to generating facilities to local adjust energy output to match WINDSOR areas. Distribution is the delivery changes in demand (peaking of electricity within local areas and intermediate generation). to homes and businesses using OPG’s nuclear generating stations relatively low-voltage power lines. operate as baseload facilities, OPG GENERATION FACILITIES AT DEC. 31, 2016 Energy marketing relates to the whereas the hydroelectric stations purchase of large amounts of operate as baseload, intermediate electricity or equivalent financial or peaking stations, depending products, and the subsequent re- on their physical characteristics 2 2 3 2 65 1 1 selling in smaller quantities to third and hydrological conditions. parties in either the wholesale or Nuclear Leased Thermal Co-Owned Hydroelectric Wind Hydroelectric OPG’s thermal stations operate as Stations Nuclear Stations Gas-Fired Stations Power Project Under retail markets. Stations Stations Turbine Construction peaking facilities.

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We believe that investing in These relationships contribute to MESSAGE FROM THE nuclear power is central to meeting Indigenous community development provincial and national targets to through employment and training PRESIDENT AND CEO reduce greenhouse gas emissions. opportunities, and they provide a It will also enable greater long-term revenue stream. In addition AND THE VICE PRESIDENT electrification, and decarbonization, to the project with TTN, we have of Ontario’s economy. hydroelectric power partnerships with OF ENVIRONMENT Lac Seul First Nation and Moose Cree Building on our Legacy First Nation, and have plans to develop a solar facility with Six Nations of the Grand River. We’re also exploring For more than a century, our microgrid development partnerships hydroelectric generating stations with Indigenous communities. have contributed to Ontario’s prosperity by delivering clean, reliable, cost-effective and Driving Results for the Future renewable energy. OPG continues to expand and invest in these While our recent accomplishments are valuable assets to provide encouraging, we remain focused on electricity for generations to come. meeting our business objectives and JEFF LYASH HEATHER FERGUSON targets to continue to deliver value President and CEO Vice President, Environment In 2016, work advanced on the to the people of Ontario. This means construction of the Peter operating our plants safely and Sutherland Sr. GS on the Abitibi reliably, delivering all projects on time “The work we do has purpose that goes beyond the power we River in northeastern Ontario. and on budget, keeping our rates generate. Reliable, clean power is essential to a healthy future and This partnership project with low while achieving strong financial a strong economy. OPG produces more clean energy – at a lower Taykwa Tagamou Nation (TTN) was performance, and maintaining our cost – than any other generator in Ontario. At OPG, we’re not just completed in early 2017 ahead of social licence to operate. It also generating power, we’re generating a better Ontario.” schedule and on budget. We also requires forward-looking innovation refurbished our 750-acre reservoir and growth strategies to support the JEFF LYASH at the Sir Adam Beck Pump GS in President and CEO development of clean technologies 1 Niagara to extend its operating life and electrification of the economy. by 50 years. This facility can pump Regardless of the challenges, our Ontario Power Generation produces more clean energy, at a lower Clean Power Transition To sustain this commitment to and store the equivalent of 8,000 purpose will not change and our cost, than any generator in Ontario. We believe reliable, clean clean power, OPG has undertaken Olympic-sized swimming pools of efforts will continue to yield value for power is fundamental to a healthy environment and a strong, a $12.8 billion project to refurbish water in the reservoir during periods Ontario’s economy and environment. Ontario’s electricity supply mix low-carbon economy. Darlington Nuclear GS. This is of low energy demand and then has transformed dramatically to Canada’s largest clean energy release the water to produce Thank you for your interest in OPG reduce greenhouse gas emissions. In this era of technological, environmental and economic change, project and it’s off to a strong electricity during periods of high and we welcome your feedback. The most significant contributor staying focused on our company’s mission to generate safe, clean, start. A significant milestone was demand. This project too was was OPG’s successful shutdown reliable and low-cost power is particularly important. Whether it’s reached in October 2016 when OPG completed ahead of schedule and of its coal-fired generation. We promoting innovation and creating jobs through nuclear station began the refurbishment of the under budget. also converted two of our former upgrades, renewing and expanding our hydroelectric fleet, taking a first unit. A refurbished Darlington coal stations to burn cleaner, leadership role in the electrification of Ontario’s transportation will deliver 30 more years of clean renewable biomass. OPG’s power Indigenous Partnerships JEFF LYASH sector, or building lasting, clean-power partnerships with Indigenous power, create thousands of jobs, President and CEO is now 99 per cent free of smog communities, OPG is committed to sustainable operations and and provide significant economic and greenhouse gas emissions. Renewable energy partnerships improving the well-being of Ontario’s communities. benefits across the province. We Ontario is viewed as a North with Ontario’s Indigenous are also preparing to extend the American leader in decarbonizing communities have emerged as operation of Pickering Nuclear GS a mutually beneficial approach its electricity system. HEATHER FERGUSON 1 | Darlington Nuclear GS Unit 2 refurbishment work. to 2024. with lasting economic benefits. Vice President, Environment

ONTARIO POWER GENERATION 2016 SUSTAINABILITY REPORT | OVERVIEW 10 11 PRIORITY SUSTAINABILITY TOPICS AND PROCESS MAP

Key: Direct impacts Indirect or localized impacts

Resource Electricity TOPICS Extraction Suppliers OPG Customers

HIGHEST PRIORITY

Cost of electricity: The cost of generating electricity is a portion of customers’ bills. OPG's power is priced lower than other generators.

Nuclear emissions: Very low levels of radioactivity are released to the environment as a result of nuclear generation.

Public health and safety, emergency preparedness: 1 Includes nuclear emergency management and water safety around dams and hydroelectric stations.

Radioactive waste: Nuclear generation produces a small ABOUT THIS REPORT amount of radioactive waste as a by-product that requires long-term management in a willing and informed Purpose management’s discussion and OPG’s priority sustainability topics host community. analysis, consolidated financial were formally identified through HIGHER PRIORITY statements, news articles, and an assessment that reviewed and This report is OPG’s platform station performance reports, all ranked the environmental, social for communicating the value Development of new generating assets: Critical to the available on . and economic aspects of OPG’s OPG places on sustainability, www.opg.com company’s long-term financial success and job creation. activities based on the views of the company’s approach to internal and external stakeholders. Employee engagement: An engaged workforce drives managing its impacts, and Reporting What is Most Internal stakeholder input was performance and a culture to succeed. recent performance results and Relevant obtained through interviews with trends. This report is organized Environmental compliance and spills: Strong senior OPG leaders. The views by the three sustainability pillars: This report covers the topics environmental management practices protect the of external stakeholders were Environment, Social and Economic. that are considered to be the environment and build customer trust. assessed by reviewing survey and company’s most important research results, topics discussed The reporting period is from Jan. 1 environmental, social and economic Indigenous relations: OPG is committed to building and at public hearings and meetings, to Dec. 31, 2016. This report impacts, and reflects the interests growing mutually beneficial working relationships with and requests for information presents information about sites and expectations of OPG’s Indigenous communities. submitted to OPG. operated by OPG unless otherwise stakeholders and partners. th OPG has a duty to deliver an noted. This is OPG’s 18 annual OPG’s stakeholders and partners Long-term financial strength: The assessment identified a total of appropriate level of return on equity to its shareholder and sustainability report. Detailed include: local communities, 22 priority sustainability topics. The to meet its financial obligations. generation and performance data Indigenous communities and following table provides a summary from the past five years is provided partners, employees, suppliers of these topics, why they are a Modernization and renewal of generating assets and sites: in Appendix A and B. and contractors, industry groups, priority, and where impacts occur Tied to financial strength and positive local economic government and agencies at across OPG’s supply/value chain. impacts. Positions the company for growth. In conjunction with this report, federal, provincial and municipal OPG provides information about levels, non-government Protection of species of concern (i.e. fish): Electricity its sustainability programs and organizations, media, electricity generating facilities located on waterways can impact fish. performance in annual reports, customers and the general public. 1 | Biomass silos at Atikokan GS.

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Resource Electricity TOPICS Extraction Suppliers OPG Customers

PRIORITY

Biodiversity, habitat stewardship: Electricity generating stations can impact biodiversity through habitat loss and emissions to the environment.

Corporate citizenship, community development: Strengthens the well-being of host communities and the company’s social licence to operate. 1

Electricity market, long-term energy plan: As Ontario’s largest clean power generator, OPG is a major contributor to the energy supply. Data Assurance and Quality

Employee health and safety: A strong safety culture is a The following reviews are conducted to ensure OPG’s sustainability legal obligation; it makes good business sense and is the right thing to do. reporting is accurate and credible.

• Operational and performance innovation. utilities and oil and gas companies, Generation of renewable energy: Important to company data is validated by both line and to identify energy sector growth and is a stakeholder expectation. • The Global Reporting Initiative management and independent sustainability trends. In 2016, (GRI) Sustainability Reporting reviewers, and prescribed OPG was in the second quartile Greenhouse gas emissions and climate change: Important Standards were used as data is subject to assessments of the overall performance societal issue and a business opportunity for the electricity guidance to define report and audits as part of OPG’s rankings for its sustainability generation sector. content and quality. Refer to assurance program. management and disclosure Appendix C for a table mapping practices. Areas for improvement Local economic impact: Covers employment opportunities, • An audit of OPG’s 2016 GRI criteria to this report’s identified by the study were spending on goods and services, and payments to the consolidated financial content. considered for this report. shareholder. statements by independent • OPG’s 2015 Sustainability Report external auditors concluded the Comments and suggestions about was evaluated by an external Reliability and efficiency of generating assets: Impacts statements fairly present the this report are encouraged and sustainability consultant against the financial sustainability of the company and enables financial position of OPG. may be provided to: criteria for best practices in customers to function and prosper. • OPG’s sustainability data and sustainability reporting. OPG’s Vice President, Environment report was scored as having Telephone: 416-592-8195 Security, terrorism, cyber security: Component of practices are verified by an maintaining nuclear safety and public safety. independent auditor every four above average achievement. Email: [email protected] years as part of the Canadian Recommendations from the Transparency, access to information, trust: As a Electricity Association’s evaluation were taken into government-owned company, OPG holds itself accountable Sustainable Electricity Program. account for this 2016 report. The strategic pillars of this to the public. • OPG participates in an energy program are: low-carbon sector sustainability study every future, infrastructure, building Water management and flows: Critical to maximizing two years to benchmark its relationships, risk management hydroelectric power production. Related to managing sustainability performance and systems, and business 1 | Darlington Nuclear GS control room. water levels and watershed protection. practices against other energy

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2

HOW OPG CREATES VALUE

INPUTS OPG BUSINESS MODEL OUTPUTS

Natural resources Mission Safe, clean and Water, uranium, biomass, Power with Purpose: reliable energy oil, natural gas, wind Providing low-cost power in a safe, clean, reliable and Reasonable Energy assets sustainable manner for the electricity rates Hydroelectric, nuclear, benefit of our customers thermal and wind and shareholder Displacement of fossil fuels generating stations and associated facilities Values Safe, healthy and Safety; Integrity; Excellence; engaged employees 1 Financial capital People and Citizenship Salaries and benefits Human resources Behaviours Say It, Do It; Simplify It; Return on investment OUR APPROACH TO SUSTAINABILITY Stakeholder and partner Think Top and Bottom Line; to shareholder relationships Integrate and Collaborate; Value to suppliers Business Drivers For these reasons, OPG’s statement, values, and expected Tell It As It Is sustainability requirements are behaviours — the elements that Strategic Imperatives Investment in education, integrated into the company’s are central to OPG’s culture. The OPG believes that operating in Operational Excellence; environment and business model, policy requirements, business model also outlines how a sustainable manner is directly Project Excellence; Financial community initiatives performance targets, and long-term OPG plans its business and sets connected to business success. Strength; Social Licence Sustainability is a prerequisite strategic goals and initiatives. targets, and identifies the controls for maintaining a social licence OPG is committed to ensuring that are in place to address the to operate, advancing positive its progress toward meeting these key risks faced by the company. stakeholder and community requirements is disclosed to its The following diagram shows how OPG’s policy statements operations, employee health engagement, and understanding stakeholders and partners. the business model creates value establish the parameters for the and safety, Indigenous relations, LEARN MORE the company’s long-term risks for OPG, the environment and management of the company. code of business conduct, risk society. These policies are driven by legal management, cyber security, and and opportunities. Concern for Sustainability Strategy OPG Policy Statements the needs of future generations and regulatory requirements, disclosure. OPG’s operating units and the company’s objectives, and functions are accountable for also drives efficiencies and OPG’s sustainability strategy is Copies of OPG policy culture, and approach to risk establishing and maintaining innovation to ensure the best guided by its business model which statements are available at management. OPG has policy implementation of the policies possible use of resources. describes how OPG operates its www.opg.com/about 1 | Pickering wind turbine. statements pertaining to the specific to their areas of business. The business model environment, nuclear safety, safe responsibility. includes the company’s mission 2 | OPG uses the power of water to create electricity.

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OPG plans its business through Annual priorities and targets are OPG’s long-term goals, to be met The following table provides a summary of OPG’s key sustainability-related annual strategic and business included in a corporate scorecard by 2021, are to: policy requirements, associated risks, and opportunities. planning processes. These processes which is used to assess the • Increase net income and return are used to set short-term and company’s overall performance. on equity long-term business objectives, Individual operating units and priorities, and targets in the areas functions are required to establish • Maintain OPG’s generation price SUSTAINABILITY STRATEGY: REQUIREMENTS, RISKS AND OPPORTUNITIES of environmental performance, annual performance objectives advantage for the benefit of health and safety, financial and to report monthly on key customers Focus Area Policy Requirements Risks Opportunities performance, operations, and performance results. Performance • Establish growth platforms that project execution. targets are reinforced with put OPG on track to replace management employees through ENVIRONMENT • Meet environmental • OPG may be subject • Advance biodiversity and retiring generation an annual incentive plan that links compliance obligations with to orders or charges habitat stewardship • Build a diverse, healthy, engaged the objective of exceeding if it is not in compliance compensation to performance. • Manage greenhouse workforce, and the culture to these obligations where it with applicable gas emissions through succeed in a challenging future makes business sense environmental laws OPG’s clean generation • Maintain and continually • Changes in environmental portfolio and by improve an environmental requirements can result facilitating transportation In keeping with the business model, OPG has the following four strategic imperatives to management system in existing operations electrification ensure it is focused on the right work and programs to meet its long-term goals. being non-compliant and a potential inability to comply

SOCIAL • Ensure public • OPG is exposed to • Develop and execute communications are risks associated with its stakeholder engagement Operational excellence at OPG is accomplished by the safe and environmentally informative, timely social licence and public and brand management responsible generation of reliable and cost-effective electricity from the and accurate profile due to changes in strategies company’s generating assets through a highly trained and engaged workforce. the opinions of various OPERATIONAL • Work with Indigenous • Increase access to EXCELLENCE stakeholders and partners communities to foster procurement opportunities positive and mutually • OPG’s operations involve for Indigenous businesses OPG’s vision for project excellence is to be an industry leader in project beneficial relationships inherent occupational • Achieve goal of zero injuries management capability and performance. As part of the commitment to project safety risks and hazards • Prevent workplace excellence, OPG continues to enhance and streamline its approach to project • Execute program to injuries and ill health, and • Natural, technological, or planning and execution, with the goal of delivering all projects safely, on time, on shift the company’s continuously improve human-caused hazards PROJECT budget, and with high quality. culture to enable overall employee health and safety may impact OPG’s business EXCELLENCE business strategy performance continuity • Promote diversity and • Operate facilities in a safe, • OPG’s ability to operate equity within OPG and in secure and reliable manner effectively is, in part, As a commercial enterprise, OPG’s financial priority is to achieve a consistent level the community of strong financial performance that delivers an appropriate level of return on the that minimizes risks to dependent on minimizing shareholder’s investment and positions the company for future growth. the public, employees, cyber risks FINANCIAL contractors, and assets • Operations could be STRENGTH affected if human resources are not aligned with talent requirements OPG holds itself accountable to the public and its employees, and continues to focus on maintaining public trust. OPG is committed to maintaining high standards of public safety and corporate citizenship, including environmental stewardship, SOCIAL transparency, community engagement, and Indigenous relations. LICENCE

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PRESIDENT AND CEO EXECUTIVE TEAM Focus Area Policy Requirements Risks Opportunities The Chief Executive Officer (CEO) Sustainability performance is a shared responsibility at OPG. The position is accountable to the following members of OPG’s leadership team have responsibilities for ECONOMIC • Achieve a consistent level • Ontario electricity market • Improve return on equity Board for ensuring a culture setting standards, and key performance indicators where appropriate, of financial performance conditions could impact • Support successful of integrity and ethical conduct; related to the environment, health and safety, stakeholder and partner that will ensure long-term revenue and operations outcomes for OPG’s rate increasing shareholder value; engagement, and financial stewardship. financial sustainability and • Uncertainties remain regulated operations defining and executing a maintain the value of assets regarding the outcome of corporate strategy, including a • Establish project • Operate and maintain proceedings for OPG’s rate sustainable business model that management centres nuclear facilities to optimize regulated operations will service the long-term power of excellence equipment, performance, generation needs of the province; • Risks related to long-term availability, and electricity • Deliver best in class and providing a standard of obligations could impact generation performance over the life leadership that will achieve financial performance of Darlington Nuclear operational excellence with • Evaluate and implement • Variable output from respect to matters of safety, Carlo Crozzoli Chris Ginther Ken Hartwick plans to increase capacity, • Plan and execute a generating stations could Senior Vice President, Chief Administrative Officer Chief Financial Officer stakeholder relationships, financial Corporate Business and Senior Vice President, maintain performance, strategic investment plan Responsibilities include: adversely impact financial performance, asset reliability, Development and Strategy Finance and extend the operating Environment, legal performance and health, environmental and Responsibilities include: services, supply chain, real Responsibilities include: life of hydroelectric regulatory compliance. Corporate business estate and services, Ontario Finance, treasury, risk generating assets • Risks associated with major development and strategy regulatory affairs management, cyber security development projects could In addition, the Board delineates adversely impact financial the President and CEO role and performance responsibilities through by-laws, • Suppliers could adversely the Board Charter, Board policies, impact performance, and the corporate and CEO annual financial results, and goals and objectives. The Board reputation sets and monitors performance Glenn Jager Barb Keenan Catriona King against annual corporate and CEO Nuclear President and Senior Vice President, Vice President, targets and objectives. Chief Nuclear Officer People and Culture Corporate Secretary Responsibilities include: Responsibilities include: Responsibilities include: Nuclear operations, nuclear Health and safety, Board support waste management, labour relations, human Accountabilities security and emergency resources, learning and services, nuclear development, ethics regulatory affairs, nuclear LEARN MORE decommissioning BOARD OF DIRECTORS The OPG Board of Directors The Board oversees OPG’s • Audit and Risk Committee OPG Governance explicitly assumes responsibility approach of identifying, reporting • Compensation, Leadership and for the stewardship of OPG and and mitigating the risks that could Additional information about Governance Committee its business. The Board is made significantly impact the company’s OPG’s Board of Directors, up of individuals with expertise capacity to achieve its long-term • Darlington Refurbishment Charter of the Board, and in managing large businesses, strategic objectives, as well as Committee Board Committees is available managing and operating specific business plan objectives. at www.opg.com/about Mike Martelli Dietmar Reiner Jennifer Rowe • Generation Oversight Committee nuclear stations, managing The following committees of the President, Renewable Senior Vice President, Senior Vice President, Generation and Power Nuclear Projects Corporate Affairs capital intensive companies, Board focus on areas critical to Marketing Responsibilities include: Responsibilities include: and overseeing regulatory, the company: Responsibilities include: Refurbishment of the Corporate relations government and public relations. Hydro and thermal Darlington Nuclear GS and communications, operations, dam safety government relations and water resources, Indigenous relations, commercial contracts and power marketing

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KEY ACHIEVEMENTS IN 2016 TOPICS GOALS AND TARGETS 2016 RESULTS ENVIRONMENT

Performance Results Generation of Continue to invest in and expand the Proceeded with the construction of Peter renewable energy renewable generation portfolio. Sutherland Sr. GS, refurbishment of the Sir The information presented here A number of OPG’s environmental provided due to confidentiality Adam Beck Pump GS, and plans to develop is an overview of OPG’s goals, targets were adjusted upward for constraints as per the company’s Nanticoke Solar. targets and performance results 2017 to account for work activities disclosure policy. for the company’s priority associated with the Darlington Ensure nuclear operations have no Conducted environmental monitoring in the Key Nuclear emissions sustainability topics. More Nuclear GS refurbishment project. adverse impacts on human health or vicinity of nuclear stations. information about each topic can OPG’s targets for financial and Fully fulfilled the environment. Annual public radiation doses resulting be found in the relevant sections operating performance are not Partially fulfilled from the operation of each of OPG’s nuclear of this report. Not fulfilled stations were less than 0.2 per cent of the annual legal limit. Environmental monitoring program results TOPICS GOALS AND TARGETS 2016 RESULTS are available on opg.com. ENVIRONMENT Keep nuclear emissions as low as Targets for tritium emissions to air and Environmental Meet compliance obligations. Achieved excellent performance against reasonably achievable. water were not achieved: 23,357 curies compliance and targets for infractions and spills: 6 2016 Targets: 30 infractions; 17 spills tritium to air; 17,730 curies tritium to water. spills infractions; 10 spills. 2016 Targets: 18,500 curies tritium to 2017 Targets: 29 infractions; 20 spills air; 13,500 curies tritium to water; 120 Emissions remained less than one per cent Zero significant environmental events. curies carbon-14 to air of the legal limit. Carbon-14 emissions to air were better than Protection of Meet compliance obligations. Continued to implement measures to 2017 Targets: 23,920 curies tritium to air; 20,025 curies tritium to water; 120 target: 106 curies to air. species Work to prevent or mitigate adverse facilitate fish migration and to mitigate fish curies carbon-14 to air of concern effects on fish and fish habitat. impingement and entrainment. (i.e. fish) Radioactive waste Reduce the effect of low and Target for volume of LILRW produced was Biodiversity, Meet compliance obligations. Continued to advance biodiversity intermediate level radioactive waste not achieved: 3,433 cubic metres. (LILRW) on the environment. habitat Manage sites in a manner that strives conservation through various programs, Progress continued toward a decision stewardship to maintain significant natural areas. partnerships and third-party certification. 2016 Target: 2,879 cubic metres regarding OPG’s proposed deep geologic LILRW produced repository for LILRW. Support regional ecosystems and OPG, through its many conservation partners, biodiversity. has planted more than 6.5 million native 2017 Target: 5,468 cubic metres trees and shrubs since 2000. LILRW produced

Greenhouse gas Support Ontario’s Climate Change Began the execution phase of the Darlington Water Meet compliance obligations. Balanced energy production requirements emissions and Action Plan to fight climate change, Nuclear GS refurbishment project. Proceeded management with environmental, commercial and climate change reduce greenhouse gas pollution and with the construction of Peter Sutherland Sr. and flows recreational needs within watersheds. transition to a low-carbon economy. GS, refurbishment of the Sir Adam Beck Pump Continue to invest in nuclear GS reservoir, and plans to develop Nanticoke capabilities and enhance the role of Solar. renewables. Launched a transportation electrification strategy.

Define and understand climate change Developed and issued a climate change adaptation requirements. adaptation plan as part of OPG’s risk management process.

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TOPICS GOALS AND TARGETS 2016 RESULTS TOPICS GOALS AND TARGETS 2016 RESULTS

SOCIAL ECONOMIC

Transparency, Ensure public communications are Maintained the company’s reputation Electricity market, Support Ontario’s Long-Term Energy Provided perspective and ideas on how access to informative, timely, and accurate through frequent communications with long-term energy Plan to create a system that is clean, OPG can lead Ontario’s clean power future information, trust and disclosed in accordance with stakeholders, partners and the public. plan reliable, modern, and cost-effective. through the 2017 Long-Term Energy Plan compliance obligations. review process.

Indigenous Work with Indigenous communities, Continued to support procurement, Long-term Achieve a consistent level of strong Net income attributable to the Shareholder relations proximate to present and future employment and educational opportunities financial strength financial performance that delivers was $436 million. operations, to foster positive and with Indigenous community partners. an appropriate level of return and Income before interest and income taxes mutually beneficial relationships. Proceeded with the construction of Peter positions the company for future was $741 million. Sutherland Sr. GS with Taykwa Tagamou growth. Nation and plans to develop Nanticoke Solar with Six Nations of the Grand River. Cost of electricity Continue serving as Ontario’s low-cost OPG produced power at a price which was energy producer to moderate overall approximately 40 per cent lower than other Continued to engage proactively with electricity prices. generators in Ontario. Indigenous communities regarding OPG’s operations. Reliability and Implement key strategic initiatives in Total electricity generation was 78.2 TWh. efficiency of support of operational excellence. Employee Build an engaged workforce and the Offered programs and activities to Continued to evaluate and implement plans generating assets engagement culture to succeed. recognize employee achievements and to improve reliability and efficiency, increase increase involvement. capacity, and extend the operating life of generating assets. Kicked off a program to create a culture that aligns all employees and allows the Development of Invest in the development of new Proceeded with the construction of company to achieve its business strategy. new generating generating stations to ensure long- Peter Sutherland Sr. GS and plans to assets term financial strength. develop Nanticoke Solar. Employee health Ultimate goal of zero injuries. Target for workplace safety was not and safety achieved: All Injury Rate of 0.56. 2016 Target: All Injury Rate of 0.38 Modernization Invest in existing generating assets to Began the execution phase of the (injuries per 200,000 hours worked) OPG’s workplace safety performance was and renewal of ensure long-term financial strength. Darlington refurbishment project. Executed 2017 Target: All Injury Rate of 0.37 among the best of comparator Canadian generating assets projects to overhaul and rehabilitate electrical utilities. and sites hydroelectric facilities.

Public health and Meet compliance obligations. Promoted public water safety around dams Local economic Support Ontario’s economic Employed approximately 9,270 regular safety, emergency Ensure that safe operation is the and hydroelectric stations. impact development objectives where feasible. employees. preparedness overriding priority in all activities The Canadian Nuclear Safety Commission Eighty-nine per cent of spending on goods performed. gave Pickering Nuclear GS and Darlington and services was to suppliers in Ontario. Nuclear GS the highest possible safety rating.

Security, Meet compliance obligations. Increased employee cyber security terrorism, cyber Operate facilities in a safe and secure awareness through training and company- security manner. wide communications on relevant cyber security topics.

Corporate Contribute to host community well- Community investment support was citizenship, being. provided to over 850 initiatives in the community program focus areas of education, development environment and community.

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Awards and Recognition 6. OPG received a Community 9. An international industry 11. Two OPG employees were Commitment Award for its assessment recognised recognized by the Electric OPG is proud to have received the following awards, certifications, and 17-year commitment to the Darlington Nuclear GS as one Power Research Institute recognition in 2016. These awards are a tribute to the hard work and Firehouse Youth Centre, a of the safest and best performing (EPRI) with a Technology dedication of OPG’s employees. non-profit charity located in nuclear stations in the world Transfer Award for their Bowmanville. for the third time in a row. It is innovative work in expanding the first time a plant outside the use of a nuclear accident 1. OPG was named – for the fourth 3. Smoky Falls GS earned CEA member organizations for 7. OPG was recognized by the United States has received analysis program. The year in a row – as one of Leadership in Energy and all injury and accident severity Community Care Durham with the recognition three times. Technology Transfer Awards the Best 50 Corporate Citizens Environmental Design® rates for three consecutive the Corporate Community spotlight electricity sector in Canada by Corporate (LEED) Gold Certification from years (2013–2015). Leadership Award. The award 10. OPG was the runner-up winner leaders and innovators that Knights. This distinction the Canada Green Building was for the support OPG of the Shared Services apply EPRI research and reflects OPG’s commitment Council. Smoky Falls GS is 5. OPG was selected as the provides to Community Care Outsourcing Network’s technology to help make to resource, employee and OPG’s third gold certified winner of the CEA’s 2016 through OPG’s Corporate Excellence in Process electricity more reliable, financial management. facility, joining the St. Lawrence Sustainable Electricity Citizenship Program. Improvement award for efficient, affordable, safe, and Power Development Visitor Program award for Leadership implementing industry best environmentally responsible. 2. OPG maintained the ISO 14001 Centre and the Darlington in External Collaboration and 8. The Canadian Nuclear Safety practices and process certification of its environmental Energy Complex. Partnerships. The award was Commission gave the Pickering improvement initiatives to management system. OPG’s given in recognition of OPG’s and Darlington nuclear stations optimize accounts payable major production facilities 4. The Canadian Electricity partnerships with Indigenous its highest possible safety processes. These improvements have had formal environmental Association (CEA) presented groups to produce electricity performance rating for 2015. were made as part of a company- management systems in place OPG with its President’s Gold while providing education, Pickering Nuclear GS received wide initiative to improve since 1999. Award of Excellence for training, jobs and contract 1 | Jeff Lyash, OPG President and CEO (middle) its best ever rating of “Fully efficiency and reduce costs. accepts the Leadership in External Collaboration Employee Safety in recognition opportunities. Satisfactory” and Darlington and Partnerships Award from the Honourable of ranking in the top quartile of Sergio Marchi, CEA President and CEO (left) Nuclear GS achieved the rating and Scott Thon, CEA Chair. of “Fully Satisfactory” for the 2 | Smoky Falls GS is LEED Gold Certified. seventh year in a row.

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ENVIRONMENT

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ENVIRONMENTAL COMPLIANCE

Regulatory Infractions health impacts, or are determined and/or municipal authorities as to be significant by the President required, and actions were taken OPG must comply with a large and CEO, are recorded as a to prevent recurrence. OPG did 1 number of environmental significant event in OPG’s annual not receive any environmental requirements contained in statutes, corporate scorecard. OPG met non-compliance penalties from a regulations, bylaws, licences, its target of zero significant regulatory authority in 2016. permits and approvals. OPG environmental events in 2016. OPG has an ISO 14001-certifiedEnvironmental Management In this section: considers regulatory compliance OPG continues to remediate (EMS) to manage its environmental responsibilities. System to be a minimum, non-negotiable Non-compliances that have a historical land contamination at The EMS provides OPG with a framework to meet its • Environmental compliance standard, and strives to exceed moderate potential for regulatory its properties. This remediation compliance obligations, set environmental targets, and and spill management legal requirements and improve action or impact are recorded work is the continuation of a against an environmental program initially established by maintain planning, operational control and monitoring • Protection of fish performance year over year where infractions performance measure. Ontario Hydro in 1997 in response programs to manage the significant environmental aspects it makes business sense. • Biodiversity and habitat OPG identified six environmental to a Director’s Order from the of its operations. stewardship OPG classifies its non-compliances infractions in 2016, which was Ontario MOECC. As of the end of much better than the annual 2016, remediation at 48 sites was OPG’s environmental priorities include spills, emissions to air • Low-carbon future and with environmental regulatory target. The majority of these complete and remediation was and water, fish, biodiversity and wildlife habitat, radioactive climate change requirements based on the potential for regulatory action (i.e. charges, infractions were non-compliances ongoing at three sites. Completion waste, and waterway flows and levels. • Nuclear emissions and radiation orders, and penalties), and the with effluent monitoring of the program is targeted for the dose to the public level of impact to the environment requirements administered end of 2020. • Waste management or human health. by the Ontario Ministry of 1 | One of the goals of OPG’s biodiversity program is to maintain or enhance natural areas at or the Environment and Climate adjacent to its operations. • Water management and Non-compliances that have a high Change (MOECC). All infractions energy efficiency 2 | Releasing Atlantic salmon fry into Duffins Creek as part of the Bring Back the Salmon program. potential for regulatory action or were reported by OPG to the cause severe environmental or appropriate federal, provincial

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Spill Management

OPG has extensive spill management programs to prevent spills to the environment and minimize their potential consequences. Spills are prevented through careful material handling and management practices, use of less hazardous materials where possible, and evaluations of past spill events for trends. Engineered controls such as spill containment structures are used to catch and contain leaks. When a spill does occur, emergency response processes minimize any adverse impacts on the environment and reporting procedures ensure regulatory 1 2 authorities are notified as required.

OPG classifies its spills that are reportable to a regulatory authority REGULATORY SPILLS TO THE as Category A, B or C spills, based PROTECTION OF FISH on the actual or potential impacts. INFRACTIONS ENVIRONMENT Category A spills are considered very serious due to the scale of 50 30 Electricity generating facilities OPG utilizes measures such as American eel for hydroelectric injury or damage, health effects, located on waterways can impact trap and transport programs, a fish stations where these species or safety impairment. Category B 25 fish in a number of ways. At nuclear ladder, stocking programs, barriers may be impacted. OPG used 40 spills are considered serious due and thermal stations, the intake of and deterring structures, water enhanced flow mitigation and to localized injury or impacts to 20 water for cooling purposes can flow alterations, habitat protection began an evaluation of property. Category C spills are all 30 result in fish being impinged on and creation, and station effluent alternative mitigation processes other reportable spills that are less equipment as the water is filtered temperature limits to manage and at hydroelectric stations in 15 serious than Category A and B coming into the station, and fish mitigate impacts to fish. OPG also northwestern and eastern Ontario. 20 spills. OPG’s spill categories align larvae and eggs can be entrained works cooperatively with its

Number of Spills 10 • OPG participated in an Electric with Ontario MOECC regulatory Number of Incidents in the water as it passes through regulators, the scientific community, Power Research Institute requirements for the classification 10 the station. Warmer water returned and partner utilities regarding 5 (EPRI) project to investigate of contraventions. to the water body from a nuclear impacts to fish and fish habitat. technologies for the safe or thermal station has the potential 0 0 downstream passage of eels OPG had no Category A or B to impact aquatic organisms and Some examples of the programs 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 at hydroelectric stations. This spills in 2016 and the associated habitat near the station. At hydro- and project work completed in Infractions Category A & B Spills (Target = 0) included behavioural guidance annual targets remain at zero. electric stations, the flow of water 2016 to eliminate, mitigate and Environmental Penalties (no target) field trials to guide and concentrate Category C spill performance Category C Spills through the station turbines can offset impacts to fish are provided migrating eels. This work formed was better than target, with oil Infractions Target Category C Spills Target result in fish entrainment and below. part of the five-year action plan leaks from equipment as the most mortality. Physical barriers such as (2013-2017) for offsetting frequent type of spill. Corrective dams can prevent the upstream • OPG continued the turbine mortality of American actions were taken to increase migration of fish. implementation of 11 mitigation eels at R.H. Saunders GS. the maintenance and surveillance plans for lake sturgeon and of equipment, and to replace and upgrade equipment. 1 and 2 | The R.H. Saunders GS eel ladder allows juvenile eels to head upriver across the station.

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• As part of the Sir Adam Beck Post Creek were established LEARN MORE Pump GS reservoir refurbishment to protect spring spawning project, the reservoir was fish, and minimum headpond Protecting the Catch of dewatered and the fish were elevation and maximum intake the Century relocated to the Niagara River. velocities were set to protect fish A total of 2,394 fish representing and aquatic habitat upstream of OPG is dedicated to protecting 15 native species were captured the station. Ontario’s lake sturgeon on and released. rivers where it operates and • Post-construction monitoring working with partners to track • Several measures were taken to for the Lower Mattagami River and monitor populations. protect fish and aquatic habitat hydroelectric project began. during the Shebandowan dam Surveys were undertaken in the Read more at www.opg.com/ replacement project: a temporary spring for lake sturgeon and news-and-media/our-stories/ channel was created around walleye spawning, and in the Documents/20160715_ the old dam to allow for normal fall for fisheries and benthic SturgeonSurgeon.pdf river flow during construction; invertebrates. Monitoring of the newly constructed spawning the project schedule ensured 2 there was no in-water work shoals downstream of Smoky • The fish barrier net installed at during the spring spawning Falls GS was also conducted. Pickering Nuclear GS’s water period; fish were captured and The spawning shoals are intake continues to be an BIODIVERSITY AND HABITAT STEWARDSHIP released from construction areas habitat offsetting measures for effective fish diversion system, drained of water; the shoreline disturbances incurred as part of and has significantly reduced Biodiversity Strategy OPG manages its sites in a OPG endorses Ontario’s Biodiversity around the site was protected the project. fish impingement. The net manner that strives to maintain, Strategy and is a standing member during construction to prevent performed very well in 2016 • Two followup monitoring or enhance where it makes of the Ontario Biodiversity Council. potentially harmful sediment and contributed to the lowest OPG has a multi-faceted programs were completed at the business sense, significant natural releases to the river; and the impingement rate observed at biodiversity program founded on Big Island, Bay of Quinte wetland areas and associated species area where the old dam was the station since monitoring the “4 Rs” of biodiversity: retain which was restored by OPG to 1 | Lake sturgeon in the Ottawa River are what is ecologically significant, of concern. OPG also works removed was rehabilitated into began in 2004. implanted with a radio transmitter to track their offset operational impacts. The with its community partners to new spawning habitat. restore habitats that have been movements. monitoring results found that a degraded, replace habitats that support regional ecosystems and • To support the Peter Sutherland range of fish species are using biodiversity through science- 2 | Volunteers from OPG assisted with the have been lost, and recover identification of plant species at Oshawa’s Sr. hydroelectric GS, over the newly created habitat, and species that are at risk. based habitat stewardship. Second Marsh. 5,000 cubic metres of fish aquatic vegetation that provides habitat was built in the Abitibi habitat for fish and wildlife is River, minimum flows on New beginning to grow.

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Site Biodiversity and species at risk. OPG, in • Habitat Creation: Several • Third-Party Certification: Management collaboration with the Ganaraska OPG sites have constructed OPG has certifications from Region Conservation Authority, barn swallow structures, snake the Wildlife Habitat Council monitored fish species, and hibernacula, turtle nesting and (WHC) for several of its site OPG has developed biodiversity improved stream habitat and basking sites, bird nest boxes, biodiversity programs. WHC is management plans that access at the Wesleyville site. and pollinator gardens. an international non-profit, non- describe priority natural areas, lobby group that promotes and conservation goals, threats, and • Naturalization: Pickering Nuclear • Control of Invasive Species: independently certifies habitat proposed actions to sustain GS completed the final year of Niagara Operations continued to conservation and management biodiversity. Where disruption to a 15-year reforestation effort, control invasive plants and trees. on corporate lands. During the environment is unavoidable, culminating in more than 15,000 Ragged Rapids GS conducted 2016, OPG held 12 “Wildlife at OPG plans and conducts work trees and shrubs being planted an inventory of invasive species Work” certifications and seven carefully to maximize benefits in Alex Robertson Park, the along Ragged Rapids Road. “Corporate Lands for Learning” and responsibly manage or offset Brock Woodlot and adjacent • Wetland Studies: Chats Falls GS, certifications. In January 2017, residual impacts. Here are just habitats in the Frenchman’s Bay with input from Ducks Unlimited OPG received WHC’s new a few examples of how OPG watershed. At OPG’s Niagara Canada, identified wetland “Conservation Certification” for managed biodiversity at its sites Operations, native trees and water level targets to promote the biodiversity programs at LEARN MORE in 2016. shrubs were planted at Niagara biodiversity. Marsh monitoring its Darlington and Pickering Glen in collaboration with the continued at the Grassy Bay nuclear stations. • Biodiversity Monitoring: Niagara Parks Commission. And Record Year for Peregrine Falcons wetland on Calabogie Lake. Darlington Nuclear GS a site naturalization plan was Four peregrine falcon chicks hatched at Pickering Nuclear GS in 2016, continued to conduct long- prepared for Lambton GS, a 1 | Painted turtle at Lennox GS. term biodiversity monitoring former coal generation site. the largest brood yet to hatch at the station. of breeding birds, amphibians, 2 | Wetland at the Nanticoke site. Read more at www.opg.com/news-and-media/our-stories/ bats, vegetation communities 3 | Tree swallows near Pickering Nuclear GS. Documents/20160615_PickeringPeregrines.pdf

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REGIONAL PROGRAM prairie; native wildflowers, trees contribution was combined with that PROJECT PROFILES and shrubs were planted to benefit of the Elgin Clean Water Program, pollinators and other organisms. the Elgin Stewardship Council and Eastern Ontario Students from East Elgin Secondary Ducks Unlimited Canada. South Nation Conservation School played an important role in increased forest habitat by planting the restoration efforts. Long Point Region Conservation trees. Landowner consultations Authority completed integrated were offered through an expanded Essex Region Conservation woodland, wetland and grassland woodlot advisory service to help Authority and its partners planted initiatives on public and private protect woodland species at risk. tree and shrub seedlings in lands having connectivity to larger, Grassland restoration programs Essex County, the Municipality more diverse core areas. New increased habitat for birds, of Chatham-Kent and Lambton wetlands were constructed in low enhanced pollinator habitat and County. Low productivity farmland productivity farmland, old field addressed environmental stressors. was converted to future rural forests, habitat, former reservoirs, along To improve wetlands, wild rice was and native tree and shrub seeds floodplain fringes and in historic sown to increase habitat and wildlife were collected for propagation. New river oxbows. A mix of species and food sources, wood duck boxes grassland was created in the Essex trees were planted. 1 were installed, and a significant Region and Lower Thames Region turtle nesting site was enhanced. Conservation Authority jurisdictions.

where genetic, species or ecosystem 1 | Biodiversity banner and display at the Reveler Regional Biodiversity Southwestern Ontario Kettle Creek Conservation Authority diversity have been most impacted, Conservation Area Grassland Restoration project. Program Photo courtesy of Karen Paquette. Catfish Creek Conservation and its partners created and and substantive threats remain. Authority and its partners restored restored wetlands and wetland Work contracts are awarded by 2 | Kettle Creek Conservation Authority wetland OPG’s regional biodiversity program restoration work. wetland sites to improve wildlife habitat in the Kettle Creek and OPG to selected vendors through strategically funds and promotes habitat, and the regulation and Upper Thames River watersheds, a competitive process. Recent 3 | Tree planting by Long Point Region efforts to protect and restore Conservation Authority. retention of runoff. Upland nesting and trees were planted adjacent to highlights from OPG’s regional biodiversity in areas of Ontario was improved by planting a tallgrass the wetland sites. OPG’s funding biodiversity program are as follows.

ONTARIO POWER GENERATION 2016 SUSTAINABILITY REPORT | ENVIRONMENT ONTARIO POWER GENERATION Conservancy ofCanadacreated numerous volunteers, theNature Conservation Authority and like theNottawasaga Valley In collaboration withpartners rare speciesandat risk. biodiversity, includingseveral of theNorth”becauseits referred to asthe“Everglades west ofBarrie, isfrequently The MinesingWetlands, situated Central Ontario 36 CUMULATIVE TREE PLANTING TREE CUMULATIVE Millions of Trees and Shrubs 0 4 6 3 5 2 7 1 2000 2004 2008 change. In2016, OPG’s regional to mitigate theeffects ofclimate and resilient forests whichhelp efforts promote diverse, healthy OPG’s tree andshrubplanting Tree Planting conducted rare speciesmonitoring. invasive speciescontrol, and along theMadRiver, completed Creek, improved stream banks large river meandersinWillow 2012 2016 1 construction oftheVista Trail viewing platform. outreach initiatives, trail rehabilitation and the Park since 2010, fundingeducation and 3 |OPGhasbeenaproud sponsorofRouge 2 |Dragonfly at Minesing Wetlands. track speciesdiversity at MinesingWetlands. 1 |Data obtainedby volunteers isusedto help their lifetime. tonnes ofcarbondioxide over could offset over three million It isestimated that theseplantings 6.5 millionnative trees andshrubs. partners have planted more than habitats. Since 2000, OPGandits newly created forest orwetland trees andshrubsonexisting or planted more than250,000 native biodiversity program partners 2 Earth Rangers,LEAF(Local with Bruce Trail Conservancy, stewardship. OPGpartners knowledge andecological education, awareness, scientific contribute to biodiversity OPG supportsinitiatives that Biodiversity Partnerships Documents/20160601_CorporateSalmon.pdf Read more at www.opg.com/news-and-media/our-stories/ Atlantic Salmon Restoration Program. More thansixmillionfishhave been stocked through theLake Ontario OPG HelpsBringBacktheSalmonat Duffins Creek LEARN MORE Salmon Restoration Program. Also for theLake OntarioAtlantic commitment astheleadsponsor In 2016, OPGrenewed its Friends oftheEarthCanada. the Let itBee campaignthrough Park, Toronto Wildlife Centre, and Forests), OntarioNature, Rouge Enhancement andAppreciation of 2016 SUSTAINABILITY REPORT |ENVIRONMENT research andmonitoring. outreach andeducation, and quality andhabitat enhancement, production andstocking, water of theprogram include:fish its streams. The maincomponents population to Lake Ontarioand a self-sustaining Atlantic salmon the program works to helprestore known asBringBacktheSalmon, 37 3 38 39

LEARN MORE

Low-Carbon Impact of Nuclear Power

Continued operation of Darlington Nuclear GS will take the equivalent of two million fossil- fuelled cars a year off Ontario’s roads by avoiding significant emissions of greenhouse gases.

Read more at www.opg.com/ news-and-media/news-releases/ Documents/20161005_ IntrinsikReport.pdf 1

LOW-CARBON FUTURE OPG’S LOW-CARBON FOOTPRINT

2016 carbon dioxide (CO ) equivalent emissions (tonnes) Climate Change Mitigation To ensure a supply of clean power OPG is a member of the Carbon 2 for generations to come, OPG’s Pricing Leadership Coalition, which THERMAL NUCLEAR Efforts are underway around the operational and growth strategies brings together government, the world to mitigate the rate and scale are focused on innovation, and private sector and civil society to of climate change by reducing energy and storage development. share experience working with 598,586 13,080 greenhouse gas emissions to This includes preserving the nuclear carbon pricing and to advance CO emissions are from power generation (i.e. Nuclear power plants do not emit CO as part of the atmosphere. Here in Ontario, portion of OPG’s generation portfolio, carbon pricing. 2 2 OPG is proud of its transition to a participating in the development combustion of natural gas, oil and biomass) the power generation process. However, OPG’s low-carbon electricity generation of new nuclear technologies, and non-generation sources (i.e. auxiliary nuclear sites have standby generators to provide portfolio, and its role in helping evaluating and implementing boilers). Includes OPG’s share of emissions from backup electrical power to the stations if required. to meet federal and provincial plans to increase hydroelectric co-owned facilities. These generators are routinely tested to ensure generation, and investing in other their availability. greenhouse gas reduction targets. In comparison, OPG’s CO emissions peaked low-carbon technologies. 2 at 39 million tonnes before the phase-out OPG is Ontario’s largest clean of coal. energy provider, producing and OPG supports climate change selling electricity that is 99 per policy and regulations that promote HYDRO WIND cent free of greenhouse gas further reductions in greenhouse emissions. The elimination of coal- gas emissions. In 2016, OPG fired electricity production resulted established the necessary processes to comply with Ontario’s cap and 0 0 in coal being reduced from one- trade program requirements which quarter of Ontario’s energy supply Hydroelectric stations do not emit CO2 as part of Wind power turbines do not emit CO2 as part of 1 | Darlington Nuclear GS. mix in 2003 to zero in 2014. came into effect in January 2017. the power generation process. the power generation process.

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Climate Change Adaptation define adaptation requirements, Climate Change, and the Ontario TRANSPORTATION ELECTRIFICATION STRATEGY and monitor developments in Climate Advisory Committee. climate science, adaptation OPG has identified climate In 2016, the Province of Ontario vehicles. Plug’n Drive focuses on activities, and potential changes to OPG is an affiliate member of the change adaptation and extreme released its five-year Climate education and outreach, electric policy and regulatory requirements. Ouranos consortium on climate weather as strategic risks for the Change Action Plan to reduce vehicle charging infrastructure, change which allows OPG to company. Longer term changes greenhouse gas pollution and electric vehicle research, and In 2016, OPG prepared a climate participate in climate change in precipitation patterns and transition to a low-carbon economy. the implementation of policies change adaptation plan which will science research and access amounts, water temperatures, Creating a cleaner transportation and programs that make switching be used to assess the resilience expertise related to watersheds. A and ambient air temperatures system is one of the key actions to an electric vehicle easier. of systems and processes against key project Ouranos has undertaken can impact the availability and identified in the plan. As Ontario’s 2 projected climate change effects, for OPG is the development of quality of water resources. These largest clean power generator, OPG also has its own and identify areas where system an Ontario hydro-climatic atlas. 1 and 2 | OPG is transitioning its gas-powered changes could potentially affect OPG is well-positioned to provide transportation electrification and process hardening activities This atlas will show projected vehicle fleet to electric vehicles, where feasible. power production at hydroelectric the province with the clean, strategy to stimulate electric may be required. temperature and precipitation stations, and cooling water safe, reliable and cost-effective vehicle growth and innovation. signals for the rivers where OPG has efficiency at nuclear and thermal electricity it needs to support This strategy is focused OPG continues to participate in hydroelectric operations. stations. Unusual or unpredictable electrification plans. on increasing OPG’s use of climate change adaptation initiatives weather also has the potential to electric vehicles (i.e. cars, with municipal and regional Inflow forecasting models being damage electricity generation and OPG is a founder and lead sponsor boats, trucks) where possible, governments, the Ontario Ministry developed for hydroelectric transmission infrastructure. of Plug'n Drive, a non-profit expanding its workplace of the Environment and Climate operations will also support OPG in organization committed to charging infrastructure, and Change, the Ontario Ministry of assessing the impacts of changing To date, OPG has not experienced accelerating the adoption of electric initiatives aimed at capitalizing Energy, and Natural Resources weather and climate on production significant impacts attributable vehicles. Electric vehicles help on potential future commercial Canada. OPG is also a member of and operational efficiency, and to climate change or extreme reduce greenhouse gas emissions growth opportunities and new the Canadian Electricity Association will inform decisions regarding weather, but it is recognized that by displacing gasoline and diesel lines of business. (CEA) Adaptation Working Group, adaptation measures. efforts are required to assess the the Durham Region Roundtable on 3 | Climate change could potentially impact short and long-term risks, better hydroelectric operations.

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TRITIUM EMISSIONS CARBON-14 EMISSIONS

legal limit to air = 1.6 million legal limit to water = 10 million legal limit = 9500

legal limit legal limit 50000 150

125 40000

100 30000

75 Curies Curies 20000 50

10000 25

0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Emissions to Air Carbon-14 to Air Emissions to Water Target Target

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NUCLEAR EMISSIONS

Radiation Protection carbon-14, and air filters to remove remained less than one per cent of In 2016, the results of the EMPs government agency that regulates and the environment around particulate radioactive material and station legal regulatory operating confirmed that both airborne the use of nuclear energy and OPG’s nuclear generating stations Very low levels of radioactivity are radioiodine. Additionally, releases limits. Performance for carbon-14 and waterborne radioactive materials in Canada – maintains continued to be safe. released to air and water as a are monitored and controlled emissions was better than target releases were small fractions an independent environmental through station maintenance and in 2016. for the regulatory release limits. monitoring program to verify that result of operating OPG’s nuclear LEARN MORE generating stations. These releases operating procedures. Furthermore, annual average tritium the public and environment around are all derived from the fissioning To ensure OPG’s nuclear operations concentrations in drinking water at CNSC-regulated nuclear facilities Nuclear Power and Radiation of uranium in the reactor core. OPG Stringent internal station targets have no adverse impacts on human nearby water supply plants were are not adversely affected by has a radiation protection program for tritium and carbon-14 emissions health and the environment, well below the level committed to releases to the environment. Under Publications, educational to keep emissions and radiological are set based on past performance Darlington Nuclear GS and Pickering by OPG. In conclusion, the results of the monitoring program, samples resources, and scientific and doses to the public and the and external benchmarking to Nuclear GS have well-established the EMPs continue to demonstrate are taken from public areas around technical information about environment as low as reasonably promote continual improvement. In environmental monitoring programs that the impact of operations on the nuclear facilities and analyzed at nuclear power plants and radiation achievable, taking social and 2016, the annual targets for tritium (EMPs) in the vicinity of the stations. local population and environment is the CNSC’s laboratory. Data and are available on the CNSC website economic factors into account. emissions to air and water were These programs are designed extremely low. conclusions are then published on not achieved due to equipment to assess impacts, demonstrate the CNSC website. at www.nuclearsafety.gc.ca Multiple systems are in place to performance issues and because compliance with regulatory limits, Independent minimize and control radioactive the operation of OPG’s tritium validate the effectiveness of Environmental Monitoring In 2016, the CNSC released sampling 1 | Radiological emissions from the Darlington removal facility was reduced by containment and effluent controls, results from its independent and Pickering nuclear sites remain a small emissions, including dryers to fraction of the allowable release limits. an extended maintenance outage. and verify predictions made by environmental monitoring program remove tritiated water vapour, The Canadian Nuclear Safety Despite these challenges, emissions environmental risk assessments. which confirmed that the public ion exchange resins to remove Commission (CNSC) – the federal

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Radiation Dose to the Public

Public radiation exposure from OPG’s nuclear generating stations is estimated on an annual basis by assessing the impacts on “critical groups” of people who live or work near the stations. Dose calculations consider the actual eating, drinking and living habits of these groups. This information is obtained through surveys and analysis of environmental samples taken from a variety of sources including air, water, milk, soil, sediments, vegetation, animal feed, eggs, poultry and fish. The group and age class with the 1 highest dose is reported as the site public dose for the given year. Dose is expressed in microsieverts DOSE SOURCE (μSv) which is an international unit PUBLIC DOSE COMPARISON 2 of radiation dose measurement.

In 2016, the public doses calculated 1000 Operation of OPG’s legal limit Nuclear Generating WASTE MANAGEMENT for Darlington Nuclear GS and Stations 3 Pickering Nuclear GS were 0.6 and 0.1% 1.5 μSv respectively. These doses Low and Intermediate Minimizing the generation of necessary into radioactive work are less than 0.2 per cent of the 2 Level Radioactive Waste waste not only reduces OPG’s areas to prevent contamination. As legal limit of 1,000 μSv per year, environmental footprint, it is also a means to further reduce waste an effective means of lowering storage requirements, low level and approximately 0.1 per cent of 1 Low and intermediate level Microsieverts costs associated with the in-station waste is incinerated or compacted the estimated average background Natural radioactive waste (LILRW) radiation dose around Darlington Background is produced during routine processing, transportation, storage, where possible to reduce the Nuclear GS and Pickering Nuclear 0 Radiation and long-term management of volume of waste. In 2016, OPG did 2012 2013 2014 2015 2016 99.9% operations at nuclear facilities. GS of 1,400 μSv per year. LILRW includes products waste. Key strategies to reduce not meet its internal target for the Darlington Nuclear and components used in the the generation of low level waste production of LILRW, mainly due Pickering Nuclear reactor building that may have include segregation of radioactive to the volume of waste generated collected some radiation. Low and non-radioactive waste, from work activities to prepare LEARN MORE level waste consists of materials decontaminating and/or reusing for the Darlington Nuclear GS such as protective clothing, items, and only taking what is refurbishment project. OPG Emissions Data floor sweepings, mops and rags. Intermediate level waste includes “Given the ongoing importance of nuclear power to our provincial OPG’s radiological emissions materials such as resins, filters and national well-being, OPG is committed to the safe, responsible data is accessible online. Detailed and used reactor components. management of nuclear waste. We have an obligation to future LILRW from OPG-owned nuclear environmental monitoring generations to dispose of nuclear-related waste safely and responsibly program results and environmental stations is safely stored at OPG’s — where it cannot pose a threat to the public or the environment.” emissions data reports are waste management facility located available at www.opg.com/news- 1 | Environmental monitoring station. at the Bruce nuclear site in the JEFF LYASH and-media Municipality of Kincardine. OPG President and CEO 2 | Used nuclear fuel storage containers.

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LOW AND OPG is working to develop a High Level Radioactive Waste INTERMEDIATE LEVEL permanent solution to safely store its LILRW. OPG has proposed to RADIOACTIVE WASTE High level radioactive waste is used build and operate a deep geologic nuclear fuel that no longer contains repository (DGR) which would enough fissionable uranium to 4000 safely isolate about 200,000 cubic heat water efficiently. Once a metres of LILRW at a depth of used fuel bundle is replaced by 680 metres at the secure Bruce 3000 a new bundle, the used bundle nuclear site. High level used is removed from the reactor nuclear fuel will not be stored or and placed in water-filled pools, 2000 managed in the DGR. known as fuel bays, at the nuclear generating station. Fuel bays are Cubic Metres The Joint Review Panel (JRP) built of reinforced concrete, lined 1000 for the DGR project held public to prevent leaks, and designed to hearings in 2013 and 2014 to give withstand earthquakes. The used participants the opportunity to hear 0 fuel bundles are stored underwater about the project and its potential 2012 2013 2014 2015 2016 for at least ten years while their environmental effects. In 2015, the Volume of Waste Produced heat and radioactivity decline. JRP issued a report to present their Target Afterwards, the fuel bundles are conclusions and recommendations transferred to dry above-ground regarding the project. The Panel storage containers at the site. concluded that the project is not Currently, used nuclear fuel is in likely to cause significant adverse 1 storage at the Pickering, Darlington environmental effects, taking into and Bruce nuclear generating account the implementation of station sites. mitigation measures. RESOURCE USE LEARN MORE The Nuclear Waste Management In 2016, OPG completed three Organization (NWMO) was Water Management aquatic and terrestrial habitats. It further technical, environmental Nuclear Waste Management established in 2002 by Canada’s can also play a significant role in LEARN MORE and economic studies into the nuclear electricity producers, flood mitigation and prevention Watch a video about how OPG proposed DGR at the request including OPG, to design and WATER LEVELS in many watersheds. OPG uses Predicting the Power of Water handles nuclear waste with of the federal Minister of implement Canada’s plan for the AND FLOWS hydrological and meteorological care at www.youtube.com/ Environment and Climate Change. safe, long-term management of data to manage water levels, OPG is participating in the NSERC watch?v=9HADmKZ47zw These studies show that OPG In 2016, OPG operated 65 used nuclear fuel. The plan, known flows, and water storage. OPG Canadian FloodNet project, a could build the DGR elsewhere in hydroelectric plants and 240 dams as Adaptive Phased Management, strives to schedule water use for multidisciplinary research network Additional information about Ontario, but with additional delays, on 24 river systems. Many of these requires used fuel to be contained optimum utilization. led by the Natural Sciences and OPG’s proposed DGR is available risks and environmental effects, structures are used to control or and isolated in a deep geological Research Council of Canada. at www.opg.com/dgr largely due to transporting the adjust water levels and flows in repository. It also calls for a OPG works with municipalities existing waste to a new site. OPG’s accordance with requirements that comprehensive process to select and organizations, including Read more at www.opg.com/ Details regarding the NWMO’s preferred location remains at the range from voluntary watershed an informed and willing host for the Ontario Ministry of Natural news-and-media/our-stories/ strategic plan for implementing Bruce nuclear site. In 2017, the management commitments to the project. The site selection Resources and Forestry, the Documents/20160805_ Adaptive Phased Management are federal Minister of Environment international treaties. process began in 2010 and will Ottawa River Regulation Planning Floodnet.pdf available at www.nwmo.ca and Climate Change requested take many years to complete. This Board, and the International Lake that OPG update its analysis of Regulating water levels and flows will be followed by an estimated Ontario-St. Lawrence Board of the 1 | Stewartville GS. the potential cumulative effects helps maintain water levels for 10-year period to construct the International Joint Commission, of the DGR project on physical recreational, commercial or other facility. In the interim, OPG will on water management provisions and cultural heritage, through its water-based activities; prevents continue to store its used fuel at for water levels and water flows ongoing process with Saugeen shoreline erosion and damage to its nuclear generating station sites. across the province. Ojibway Nation. infrastructure; reduces impacts to fish; and prevents damage to

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WATER USE AND CONSERVATION To ensure water is used wisely, OPG undertakes regular assessments of its hydroelectric dams, powerhouses and associated facilities to detect and repair any water leaks and to identify opportunities to update equipment and fixtures to reduce water usage.

Almost all of the water used by nuclear and thermal stations is used for cooling purposes. It passes through the station only once and is returned to its source. 1

Energy Efficiency gigawatt hours per year, and is Nanticoke GS and Lambton GS. the result of various initiatives to In addition to this program, OPG reduce electricity consumption also considers energy efficiency OPG (and previously Ontario and increase energy output and sustainability when renovating Hydro) has pursued an energy through station upgrades. and constructing buildings. efficiency improvement program Improvements were recently for more than 20 years to In 2016, OPG achieved new completed at OPG’s Wesleyville conserve energy and increase internal energy efficiency savings site to reduce the amount of generation capacity. The of 15.6 gigawatt hours per year energy required for building cumulative energy improvement primarily due to the shutdown of cooling and lighting. SOCIAL since 1994 has been 2,557

1 | OPG provides river water level and flow data atwww.opg.com/ generating-power/hydro/Pages/ 1 River-System-Data.aspx.

OPG holds itself accountable to its core values of Safety, In this section: CUMULATIVE ENERGY EFFICIENCY IMPROVEMENTS LEARN MORE Integrity, Excellence, and People and Citizenship as outlined in its Code of Business Conduct. OPG is committed to • Stakeholder and community engagement Energy Conservation maintaining high standards for stakeholder and community 3000 engagement, health and safety, emergency preparedness, • Indigenous engagement 2500 To learn more about the value of and community investment because it is an essential part • Employee health and safety energy conservation and ways to 2000 of being a good corporate citizen and neighbour. save electricity, refer to the Green • Public health and safety 1500 Ontario Fund website at • Emergency preparedness www.GreenOn.ca 1000 and security 500

Gigawatt Hours per Year • Employee engagement, 0 development and diversity 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

1 | Employees and pensioners contribute to charities of their choice through • Corporate citizenship program payroll deductions and special events.

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STAKEHOLDER AND PARTNER ENGAGEMENT

Methods of Engagement and Group Feedback Systems Engagement Examples 2016

Indigenous Community relations and • In partnership with Taykwa Tagamou Nation, partners and outreach, capacity-building construction of the new Peter Sutherland Sr. GS communities support including employment progressed on schedule and on budget and business opportunities, • Ongoing engagement with the Saugeen Ojibway Corporate Citizenship Program Nation regarding the proposed Deep Geologic Repository (DGR) within their traditional territory in Bruce County

• Provided community investment support to 87 Indigenous initiatives near OPG operations

Local Website, social media, • Continued the distribution of potassium iodide communities visitor centres, community (KI) pills to new residents and residents near the advisory councils, open houses, Darlington and Pickering nuclear stations facility tours, direct mail, TV 1 • Hosted Darlington Energy Complex two-day open (select communities), print, house and Pickering Nuclear GS extended operation radio and online advertising, open houses STAKEHOLDER AND COMMUNITY ENGAGEMENT hearings, consultations, participation in community • Hosted community open houses on select river systems events, Corporate Citizenship to inform residents of safety and water management Building Trust and for openly sharing information Engagement Processes Program, community research • Held a “Virtual Town Hall” telephone discussion about Relationships about the company’s activities OPG operations in Northeast Ontario and operations, and for receiving The following table summarizes OPG’s licence to operate depends and considering feedback. This OPG’s processes for stakeholder • Use of Twitter to highlight community news and events framework allows OPG to build on meeting the environmental, engagement, as well as key • Regular update meetings with Darlington and trust, adapt to evolving stakeholder social and economic expectations engagement activities in 2016. Pickering community advisory councils of stakeholders and local Indigenous expectations and regulatory communities. Accordingly, OPG requirements, and make better • Nuclear facility performance reports published business decisions. 1 | Visitors at a Pickering Nuclear GS community quarterly on opg.com has an engagement framework information session. • Provided community investment support (charitable, non-profit, in-kind support) in host communities

LEARN MORE • Conducted community research in Durham Region, Northeast, Northwest and Central Ontario Collaboration with Educational Partners

Employees Intranet, newsletters, regular • PowerNet intranet site OPG has a partnership with Durham College and the University of face-to-face meetings, email, Ontario Institute of Technology (UOIT) to produce career-ready • PowerNews company newsletter videos, posters, ad hoc surveys, graduates for the energy industry. information sessions • Senior manager emails, blogs and video messages

Read more at www.opg.com/news-and-media/news-releases/ • Regular safety and department meetings Documents/20160510_DC-UOIT_Partnership.pdf

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Methods of Engagement and Methods of Engagement and Group Feedback Systems Engagement Examples 2016 Group Feedback Systems Engagement Examples 2016

Suppliers and Internet webpage on opg.com, • All suppliers who have transactions with OPG are Non-government Meetings, hearings, • Member or supporter of organizations such as contractors supplier pre-qualification required to comply with OPG’s Supplier Code of organizations consultations, open houses Ontario Community Newspaper Association, process, labour requirements, Conduct and register with the Ariba Network Lake Ontario Waterkeepers face-to-face meetings • On-site service providers are also required to register • Partnerships to support biodiversity initiatives with ISNetworld • Sponsorship of various environmental groups such as • Interface to promote continuous improvement in Ontario Nature, Friends of the Earth, Toronto Wildlife supplier performance and quality of parts and services Centre, LEAF, Bruce Trail, Rouge Park and Earth Rangers delivered to OPG • Increased engagement and information sharing with clean air advocacy groups such as Pembina Institute, Industry groups Working groups, organizations, • Sponsorships of and memberships in a variety of Pollution Probe and Toronto Atmospheric Fund meetings, conferences organizations such as the Canadian Nuclear Association, CANDU Owners Group, Canadian Electricity Media News releases, Twitter, 24/7 • Issued 47 news releases in 2016, regarding water Association, Ontario Waterpower Association, Ontario media desk coverage, media safety, plant operations, financial results, etc. Biodiversity Council, Canadian Council of Aboriginal tours of stations, outreach to Business, Chambers of Commerce and Boards of Trade, • Hosted more than 20 media tours of facilities media stakeholders and Canadian Manufacturers and Exporters

Electricity Public hearings, earned and paid • Regular updates on opg.com Government Meetings, hearings, • Presented to several federal parliamentary committees ratepayers, media including TV water safety and government consultations, correspondence on OPG’s nuclear operations • Relaunched Powering the Future advertising campaign general public public service announcements, agencies • Ongoing engagement with local federal and provincial extensive digital and social • Relaunched The Power of Water public safety Members of Parliament, host community mayors and media presence, open houses, campaign in winter and summer councillors, as well as groups like the Mayor’s Nuclear visitor centres, print publications • Fall social media campaign to support economic and Technology Caucus and the Great Lakes Caucus environmental impact studies on Darlington refurbishment • Participation in consultations and preparation of a • Advertised in major and community newspapers and formal submission to Ontario’s Long-Term Energy Plan industry magazines • Presentation and submissions to support the federal • Distributed 100 education kits to Ontario schools review of environmental and regulatory processes • Daily tweets and retweets on Twitter; @opg had more • Work plan and meetings under a memorandum of than 7,000 followers at the end of 2016 understanding to protect fish • Launched Instagram and LinkedIn social media platforms • Facilitated tours and briefings on OPG’s operations across the province with politicians from all parties • Various publications available to the public, including sustainability report, financial reports, PowerNews and • Meetings with officers of the government such as the performance reports Environmental Commissioner of Ontario

• Engagement with the City of Toronto to build awareness around the importance of Pickering Nuclear GS operations to the city

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OPG meets regularly with Indigenous • Ongoing discussions with Indigenous high school students community representatives and Saugeen Ojibway Nation (SON), from the communities as diverse members to share information, the Métis Nation of Ontario as the Mohawks of the Bay of discuss development initiatives and (MNO) and the Historic Saugeen Quinte, Curve Lake First Nation, review planned project activities. In Métis (HSM) on waste operations Pikwakanagan First Nation, and 2016, outreach activities included: and the proposed Deep Geologic Durham Region Métis. Repository (DGR) for low and • OPG welcomed the Native • Proactive engagement with intermediate level radioactive North American Travelling Indigenous communities on waste at the Bruce nuclear site. College display to the St. environmental assessments • Seven tours with 29 SON members Lawrence Power Development regarding the Calabogie, Ranney, were conducted at the WWMF Visitor Centre. The Centre and Coniston hydroelectric and the proposed DGR site, with also commissioned a work by station upgrades. more community tours planned in renowned Akwesasne artist John • Celebration of the completion of 2017. Environmental monitoring B. Thomas to paint a 21-foot-long two shoreline restoration projects. field trips are also being planned mural over three canvases to Whitesand First Nation worked with representatives of the MNO depict a typical day in the lives of closely with OPG to restore and HSM to build their capacities. the Mohawk people who lived on their shoreline and employed the river before the construction • Regular meetings with the Williams community members on the of canals began in the late 1700s. Treaties First Nations (Mississaugas project. Long Lake 58 First Nation of: Alderville, Curve Lake, Hiawatha • OPG supports local education undertook the management of and Scugog Island; Chippewas programs like the electricity their three-year shoreline project 1 of: Beausoleil, Georgina Island science camps operated by and finished under budget and a and Rama) to share information Elephant Thoughts Educational year ahead of schedule. about nuclear generation and Outreach for students in INDIGENOUS ENGAGEMENT • Information sharing sessions updates on the Darlington Nuclear Mattagami and Gull Bay First with Indigenous communities GS refurbishment project and Nations. In addition, OPG continued about nuclear operations and Indigenous Relations • Employment and training operations of OPG’s predecessor the PWMF relicensing process. its support of The Lieutenant projects with a focus on the Governor’s Indigenous Youth opportunities companies. A total of 23 past • OPG participated in the second relicensing of the Western Waste Summer Reading Camps operated OPG is committed to building grievance settlements with 21 First annual Aboriginal Apprenticeship • Business and procurement Management Facility (WWMF) by Frontier College in 26 First and growing mutually beneficial Nations have been resolved. This Board of Ontario “Day in the opportunities at the Bruce nuclear site and the Nations in northern Ontario. In working relationships with was an integral step in reconciling Trades” event hosted by LiUNA Pickering Waste Management total, OPG’s Corporate Citizenship Indigenous communities near its • Staff Indigenous relations training the relationship between OPG and Local 183 at their facility in Facility (PWMF) at Pickering Program provided support to 87 current and future operations. the affected communities. Cobourg. Representatives from OPG understands that some Nuclear GS. Indigenous initiatives. These relationships are built on Indigenous communities various building trades, suppliers, In November 2016, OPG and a foundation of respect for the have been impacted by the and contractors interacted with Animbiigoo Zaagi'igan Anishinaabek culture, customs and rights of development of hydroelectric (AZA), also known as Lake Nipigon Indigenous peoples. facilities in the past. Because Ojibway, renewed a long-standing of the groundwork laid through relationship with a formal apology OPG’s Indigenous Relations OPG’s past grievance process, from OPG at the community’s Policy guides the company in its the company has been able LEARN MORE annual gathering. The apology engagement and relationships to successfully build lasting addressed past grievances related with Indigenous communities in relationships with Indigenous Mohawk History Comes to Life to dams and diversion constructed five key areas: communities. Beginning in 1992, on the Lake Nipigon and Ogoki the grievance process addressed Renowned Akwesasne artist John B. Thomas painted a mural at the St. River between 1918 and 1950. • Community relations and outreach flood damage caused to First Lawrence Power Development Visitor Centre in Cornwall.

• Capacity building Nations reserve lands by the 1 | The project to remediate Long Lake 58 First Nation’s shoreline is complete. Read more at www.opg.com/news-and-media/our-stories/ Documents/20161114_Mural.pdf

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Growing Economic Partnerships FPO Through partnerships with Indigenous communities and companies, OPG has successfully developed a number of projects to produce clean, renewable LEARN MORE electricity while providing education, training, employment and contract opportunities to surrounding Indigenous communities. OPG is committed to exploring business partnerships that maximize employment while developing a qualified workforce.

Partnerships have included the Obishikokaang Waasiganikewigamig / Lac Seul, Lower Mattagami, and Peter Sutherland Sr. hydroelectric projects with the Lac Seul 1 2 First Nation, Moose Cree First Nation and Taykwa Tagamou with Six Nations Development a Silver level certification. OPG will targeted to Indigenous communities cultural awareness for employees LEARN MORE Nation, respectively. Combined, Corporation to build a 44 MW solar continue to improve its PAR results and students to promote OPG as an and provides overall advice and these projects added 478 MW power facility at its Nanticoke site. to achieve a Gold level certification employer of choice. guidance on policies and initiatives Celebrating Tomorrow’s of generation capacity. The in the next review period. that shape OPG’s relationships Indigenous Leaders most recent project – Peter OPG continues to enhance Investing in relationships with with Indigenous communities. Sutherland Sr. GS – employed 109 its business relationship with Two key improvements will be Indigenous communities also means OPG congratulates Stephanie Indigenous people in craft and Indigenous communities through a renewed, proactive business investing in its young people. OPG OPG was recognized in 2016 Seymour and Shadrak Gobért, non-craft positions and $52.4 its commitment to the Canadian engagement strategy to identify is pleased to give the John Wesley by the Canadian Electricity the 2016 recipients of the million in contracts out of $63 Council for Aboriginal Business’s supplier and partnership Beaver Memorial Award to a female Association (CEA) for its John Wesley Beaver Memorial million available were awarded to Progressive Aboriginal Relations opportunities for Indigenous and male Indigenous post-secondary approach to Indigenous Student Awards. Indigenous businesses. OPG has (PAR) program. In 2015, after its businesses, and the development of student each year to support their relations with the Leadership also entered into a partnership initial assessment, OPG was awarded outreach and recruitment strategies studies. The award is named after in External Collaboration and Read more at www.opg.com/ John Wesley Beaver, an engineer Partnerships award. The award news-and-media/our-stories/ who had a long career with Ontario is presented to companies Documents/20160818_ Hydro. Mr. Beaver was from the with a strong commitment JohnWesleyBeaver.pdf Alderville First Nation and was a to external collaboration and LEARN MORE veteran of World War II. He also partnerships with Indigenous 1 | National Aboriginal Day celebrations at OPG’s served as the Chief of his community. peoples, local communities, Kipling site. and other stakeholders. The Employment and Training Opportunities The John Wesley Beaver Awards 2 | OPG’s Barb Keenan and Jeff Lyash with selected company is chosen John Wesley Beaver Award winners Stephanie are organized by OPG’s Native Seymour and Shadrak Gobért. Individual training plans were completed for Taykwa Tagamou Nation based on a demonstration of how Circle – an internal network for members on the Peter Sutherland Sr. hydro project. collaborative efforts have led to Indigenous employees of OPG. better sustainability outcomes for The Native Circle also organizes Read more at www.opg.com/news-and-media/our-stories/ the communities, the company, OPG’s annual National Aboriginal Documents/20160406_TTNPartnership.pdf and the electricity sector. Day celebrations to support

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HEALTH AND SAFETY OCCUPATIONAL OPG also monitors High Maximum In mid 2016, OPG identified that its INJURY RATES Reasonable Potential for Harm year-to-date safety performance (MRPH) events. MRPH is a rating was not meeting expectations. To Employee Safety was awarded the President’s Gold musculoskeletal disorders, and system used to classify incidents, refocus the organization on safety, Award for Excellence in Employee caught by / pinned incidents. 4 and to determine the potential all employees and contractors At OPG, the overarching Safety from the CEA in recognition OPG will incorporate these results severity of safety incidents. These participated in a mandatory objective is to ensure that every for maintaining All Injury and into an injury reduction plan are incidents with potential for company-wide safety stand down employee and contractor goes Accident Severity Rates in the top by determining causal factors 3 injury to personnel; however, no to discuss why OPG values safety home safely at the end of each quartile for the preceding three and focusing on improvement actual injury may have occurred. and how to improve performance. day. OPG’s goal of zero injuries consecutive years (2013–2015). mechanisms for 2017. High MRPH incident investigations This type of stand down was is attainable, and OPG believes offer learning opportunities a first in the history of OPG. It it is on the path to making it a All Injury Rate (AIR) measures 2 for continued improvement in was also used to launch a new reality. OPG’s commitment to the number of injuries involving safety performance. OPG and its “Care Enough to Act” initiative to safety excellence extends beyond employees that result in lost time contractors experienced 29 High encourage employees to practice a conventional framework of or that require medical treatment. 1 MRPH incidents in 2016. Of these positive safety behaviours to standards and procedures to OPG’s 2016 AIR was 0.56 injuries incidents, 15 were related to OPG protect themselves and their include transformational cultural per 200,000 hours worked, which was worse than target. Accident employees and 14 were related co-workers. OPG is committed to initiatives, mechanisms for 0 2012 2013 2014 2015 2016 to contractors. Collectively, working to reach the next level continual improvement, and a Severity Rate (ASR) measures OPG and its contractors will of safety culture – one where team-orientated approach. the number of days lost due to Accident Severity Rate injuries. The ASR for the year (days lost per 200,000 hours, no target) be focusing on continued everyone is motivated because 1 | Jeff Lyash, OPG President and CEO (right) improvement in the reduction of they care, not only because of a OPG remains at the top of its class was 2.59. In 2016, OPG saw a accepts the CEA’s President’s Gold Award of All Injury Rate (injuries per 200,000 hours) slight increase in leading safety Excellence for Employee Safety from the incidents involving motor vehicles, rule or procedure. when measured against other Honourable Sergio Marchi, CEA President and CEO. All Injury Rate Target falling objects, and potential falls Canadian electrical utilities of indicator events such as slips and trips, insect bites, sharp objects, 2 | Employees are provided with the training and from heights. similar size. In 2016, the company tools required to do their jobs safely.

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Employee Health to educate employees on the an individual and direct them to benefits available through the appropriate help and treatment. Employee and Family Assistance OPG launched the training in May OPG’s greatest asset is its people. Program. There has been a notable 2016 and has a commitment to To protect its workers, OPG has increase in the use of services train 2,000 employees by the end a Total Health strategy to embed that pertain to proactive health of 2018. The response has been a health culture that supports initiatives such as nutrition and very positive with over 94 per employees and families in their weight management. cent of the participants stating the 2 efforts to achieve an optimal level training is beneficial to their role of health and functioning. OPG In 2016, OPG partnered with within OPG. measure, OPG has a water safety and magazine advertisements, feels that “Total Health” builds Public Water Safety Ontario Shores, one of four outreach program to inform the as well as through brochures and a more resilient and engaged Ontario Psychiatric Hospitals, public about the potential for rapid regular news releases prior to workforce, reduces the costs OPG staff work closely with to deliver mental health training and dangerous changes in water holiday weekends. “The Power of associated with ill-health, and partners in site communities to that is accredited by the Mental levels and flows. OPG’s message Water” public service television makes OPG a more attractive help ensure public safety around Health Commission of Canada. remains “Stay Clear, Stay Safe.” announcement illustrates how place to work. OPG’s dams and hydroelectric The goal is to educate participants OPG uses the powerful flow of stations. OPG properties and and help them identify signs of Safety messages are broadly water to produce clean, renewable A Total Health team works to facilities are clearly marked with mental health problems in co- communicated to the public on electricity, and it reminds viewers ensure the needs of employees warning signs, and barriers such as workers, friends, family, and even 1 | Contractors are required to maintain a television, radio, online, through to stay clear of stations and dams. are heard and addressed, and level of safety equivalent to that of OPG fences and booms are in place to themselves. This training also gives social media and in newspaper the right programs and services employees while at OPG workplaces. prevent access. As an extra safety participants the tools to support are available. OPG also continues 2 | Always Stay Clear, Stay Safe.

LEARN MORE LEARN MORE

Mental Health Awareness Water Safety in Niagara

OPG employee Tony Hall knows the lasting impact mental illness can OPG’s team at the Niagara River Control Centre organizes water rescue have on a family. A heartfelt video about his family’s story and the training with the area’s first responders. need to talk about mental health can be viewed at www.youtube.com/watch?v=0wA6ASCQNPU Read more at www.opg.com/news-and-media/our-stories/ Documents/20160722_DaringRescues.pdf

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LEARN MORE

Tali Serota Associate Coordinator of Dam and Public Safety

Tali spearheads the creation of simulated emergencies at OPG’s hydroelectric facilities.

Read more at www.opg.com/ news-and-media/our-stories/ Documents/20160923_ TaliSerota.pdf 1 2 EMERGENCY PREPAREDNESS AND SECURITY

Emergency Preparedness Darlington and Pickering nuclear • An international team of experts Representatives from the Office of Independent Nation were just a regulatory requirements and stations. OPG also has standing visited Pickering Nuclear GS the Fire Marshal and Emergency few of the many groups involved, applicable laws, improving cyber OPG’s emergency management bilateral agreements with the for an in-depth review of the Management, Toronto Office putting their own response plans security protection and detection program is designed to ensure Municipality of Clarington station’s operational performance of Emergency Management, into action during the exercise. capabilities, improving incident the company can manage an and the City of Pickering to and adherence to safety and Durham Emergency response and recovery capability, Cyber Security emergency in a timely and provide support and specialized standards. The team confirmed Management participated in the and increasing the cyber security effective manner. To support this resources and equipment in that Pickering demonstrates a sessions and provided support awareness and training level program, OPG has comprehensive emergency situations. strong commitment to safety. to answer questions. Cyber security incidents have been of employees. on the rise for the past several emergency preparedness plans • OPG participated in the testing • Pickering Nuclear GS updated its • OPG’s Northwest Operations years. This trend is expected in place to protect employees and implementation of the public evacuation time estimate held a major dam safety exercise to intensify as organizations’ and the public, the environment, Wireless Public Alerting System using the latest census data with Thunder Bay serving as reliance on technology continues property and assets, and (WPAS) pilot project in Durham available from 2011. the emergency operations to increase. OPG has strategies operational continuity. In 2016: Region. The WPAS project centre. The exercise simulated • OPG and the Canadian Nuclear in place to prepare for, respond was developed to assess the the failure of an earth dam at Safety Commission hosted a to, and recover from cyber • OPG’s Security and Emergency technical function and user Caribou Falls GS. The Ontario series of community information security incidents. In particular, Services staff continued to response to emergency alerts Provincial Police, Ontario 1 | OPG’s Wesleyville Fire and Training Academy provide 24/7 emergency sessions about operations OPG’s cyber security program provides highly specialized training to prepare using mobile devices. Ministry of Transportation, for potential emergencies. at Pickering Nuclear GS. focuses on compliance with response coverage at the Hydro One and Wabaseemoong 2 | Control room at R.H. Saunders GS.

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PEOPLE AND CULTURE

Employee Engagement opportunity to learn, grow and build their career. More OPG aspires to be a company than 180 employees at various where people work together with levels and functions across the a greater sense of ownership and organization have participated involvement; where employees in the program. To reinforce the at all levels have opportunities focus on staff development, all to expand their skills and OPG people leader performance understanding, in an environment plans are required to include where information flows freely. objectives regarding leadership and development. Succession OPG has employee programs, planning is key to the company’s events and activities to create success, particularly in recognition a sense of pride in being an that a significant portion of OPG’s OPG employee, and to foster employees are eligible to retire collaboration and team-building over the next five years. across the organization. Programs include: Power of You employee Employees are kept current awards, which recognize the on business and operational tremendous efforts of employees, activities by leveraging several 1 2 a charity campaign, employee communication tools such as service recognition, Take Our Kids the company’s intranet site, insight into the current culture, Diversity and Equity people with disabilities, and visible is best known as the girl in the to Work Day, and various events newsletters, face-to-face rollouts, as well as the culture needed to minorities. The Board’s policy on famous photo of a napalm attack and emails from executives to achieve the company’s business diversity is to interview a diverse during the Vietnam War, spoke that celebrate OPG’s diversity and A diverse and inclusive provide employees with ongoing strategy. Beginning in 2017, OPG candidate for every vacancy about overcoming adversity. promote an inclusive workplace. organization generates innovative performance updates and to will execute a multi-faceted on the Board. As of the end of ideas, has broader perspectives, • OPG continued to use a variety OPG also has an active and robust highlight accomplishments by program to shift the company’s 2016, 36 per cent of the Board and has better ways to problem- of methods to advertise job talent and succession planning teams and individuals. culture and to continue to attract met the diversity definition (five solve, all of which lead to better postings, including local media process. In support of building and retain the best candidates members), and representation of decision-making and improved outlets, social media sites, its leadership talent, OPG offers In 2016, OPG kicked off a culture to deliver on OPG’s goals and women on the Board was 21 per results. In 2016, OPG promoted career website, and direct an “Accelerate” development transformation journey. By strategic priorities. cent (three members). diversity and equity within its own contact with Band offices and program which provides high- engaging all employees through workforce and in the community • OPG’s senior leadership team and Indigenous communities. OPG potential employees with the a survey, OPG gained important through the following initiatives. diversity committees participated also augmented its traditional in unconscious bias training recruitment strategy through OPG INITIATIVES to encourage and support an a partnership with Career EMPLOYMENT NUMBERS 2016 inclusive work environment. Edge, a not-for-profit career • OPG is a signatory of the A new training program was organization that offers paid Catalyst Accord, and has • Approximately 9,270 • Approximately 3,140 OPG • Over 700 external hires also developed and delivered internship programs for new set a target for “diverse” regular employees employees were represented to highlight fair and equitable graduates, candidates with • 20 per cent of employees representation on the Board by the Society of Energy recruitment and selection practices. disabilities, and internationally • Approximately 5,070 OPG are eligible to retire in the of 50 per cent, including 40 Professionals qualified professionals. employees were represented next 5 years per cent women by 2019 and • Several events took place in by the Power Workers’ Union • Approximately 6 per cent adopted a target of 25 per cent recognition of Diwali, Eid al- • 30 per cent of employees are annual staff turnover due women on the Board by 2017. Fitr, Black History Month and eligible to retire in the next to attrition (5 per cent due OPG defines diversity to include: International Women’s Day. 10 years The Christian Society hosted 1 and 2 | One of OPG’s long-term goals is to build to retirement) women, Indigenous peoples, a diverse, healthy, engaged workforce and the an event where Kim Phuc, who culture to succeed.

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REPRESENTATION OF DESIGNATED GROUPS BY CORPORATE CITIZENSHIP EMPLOYMENT EQUITY OCCUPATIONAL GROUP

OPG has generating stations in (CI) support to over 850 grassroots Representation as of Representation as of Dec. 31, 2015 Dec. 31, 2016 communities across Ontario from host community initiatives in the 2016 CORPORATE Employment Equity Kenora to Cornwall. As a publicly program focus areas of: education CITIZENSHIP PROGRAM Occupational Group Designated Groups Number Per Cent Number Per Cent owned generator with a history of (including 250 student awards); service that goes back for more environment; and community (youth Community Investment by Senior Managers Women 2 14.3 1 7 than 100 years, OPG strives to be an amateur sport, arts and culture, Focus Area e.g. Board Chair, President engaged and productive community health and safety, humanitarian and member, helping to contribute to local causes) including support of and CEO, Presidents, Senior Visible Minorities 0 0 0 0 host community well-being. Indigenous initiatives. With average Youth Amateur Environment Vice Presidents Sport 9.3% annual program CI totalling $2.4 14.3% Indigenous Peoples 0 0 0 0 The Corporate Citizenship million, and 80 per cent of OPG’s Program (CCP) is one way OPG annual contributions between Education 19.7% demonstrates its commitment to $100 and $2,500, OPG ensures its Persons with Disabilities 0 0 0 0 corporate social responsibility by support benefits a broad spectrum providing community investment of community needs and leverages Health support (charitable, non-profit, good value. and Middle and Other Women 241 23.2 273 25 and in-kind support) to grassroots Humanitarian Safety Managers initiatives in the communities in Featured here and in the following and Local 12.6% Causes Arts and which OPG operates. OPG believes pages are examples of the 19.4% e.g. Vice Presidents, Visible Minorities 200 19.3 206 19 Culture Directors, Senior Managers, this is essential to being a good beneficial work done in 2016 by 24.7% Managers, Section Managers, corporate citizen and neighbour. OPG’s community partners. It is Project Leaders, etc. Indigenous Peoples 6 0.6 7 0.6 their hard work and passion that In 2016, through the CCP, OPG is contributing to community well- provided Community Investment being and sustainability. Persons with Disabilities 10 1.0 10 0.9

COMMUNITY SUPPORT Corporate Citizenship student athletes, ages 12 to 21, basketball, soccer, track and field, with an intellectual disability. Each and floor hockey. In addition to • OPG, through its Corporate • OPG mentors from the National professionals in occupation- Partnership Profiles athlete has a story to tell, and a their family and fans, they were Citizenship Program, provided Society of Black Engineers (NSBE) specific mentoring relationships. challenge they have to overcome. accompanied by 200 coaches and support to organizations that continued to support the students • OPG continues to support COMMUNITY School teams competed in one of supported by community partners assist people with disabilities. at Saint Mother Teresa Catholic Women in Nuclear which is a 52 regional qualifiers held in 2016. including the City of Oshawa, the Organizations included: Abilities Academy. Students competed Special Olympics Ontario worldwide association of women Provincial School Championships The qualifiers had over 5,000 Durham Regional Police Service, Centre, Canadian Mental in a mathematics proficiency working professionally in various athletes attend and making it to Durham College, OPG and others. Health Association, Canadian “Try-Math-A-Lon” competition “Ladies and gentlemen, the fields of nuclear energy and the provincial championships is “We are fortunate here in Durham,” National Institute for the Blind, in Boston and the First Robotics torch is here!” The responding radiation applications. One key an accomplishment. noted Burns. “We possess a rich Community Living, DeafBlind Canada competition at the cheers may well have blown the objective is to promote career heritage, a caring spirit, and a Ontario Services, Diversity University of Ontario Institute of roof off. Hundreds of athletes, interest in nuclear engineering, Scott Burns, OPG’s Vice President, strong dedication to community Thunder Bay, Easter Seals Technology (UOIT). parents and spectators gathered science, trades and other nuclear Security and Emergency service.” More than 300 volunteers Ontario, Learning Disabilities at Durham College on June 1 • OPG continued its partnership related professions especially Preparedness, introduced the – the majority from Durham – Association, Niagara Children’s eager to watch the Opening with Toronto Region Immigrant among women and young people. Law Enforcement Torch Run and came together to help ensure the Centre, ParaSport Ontario, Ceremonies for the 2016 Special Employment Council (TRIEC) to arrival of the torch in the building Championships were memorable Pathways Health Centre, Special Olympics Ontario (SOO) Provincial deliver The Mentoring Partnership and wished the athletes luck and enjoyable for the athletes, and Olympics Ontario, Willow School Championships. The program to bring together skilled in their upcoming events. The everyone involved. Springs Creative Centre, and two-day event provided sports immigrants and established athletes would compete in bocce, WindReach Farm. competition for more than 600

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3

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Niagara, Quinte (Tri-County), and EDUCATION to Grade 8 in the communities Sudbury. OPG staff engage of Mattagami First Nation and Elephant Thoughts Educational students in hydroelectric (water Outreach Gull Bay First Nation. Camp power) generation and water objectives included building Elephant Thoughts Educational safety learning activities. They literacy among campers in STEM Outreach is a registered charity remind everyone to Stay Clear, Stay (Science, Technology, Engineering and leader in Indigenous Safe around dams, hydroelectric and Math) using fun, hands-on education programs. Their 1 stations and fast-flowing rivers. activities to provide campers with programs celebrate distinct a basic understanding of what Native culture and identity, while Since 2008, OPG has proudly safety. Educating communities For more information visit electricity is, the role electric ENVIRONMENT at the same time teaching and supported SOO. During this time, and particularly children about www.cwec.ca/Festivals power plays in our lives, energy Children’s Groundwater Festivals integrating both traditional and countless OPG employees have the importance of healthy water conservation and electrical safety. Every spring and fall, yellow contemporary knowledge. The volunteered their time in support and water systems helps to Learning modules included: Laws school buses roll across the INDIGENOUS organization focuses on getting of these inspiring athletes. For over lay the foundation for good of Energy, Bicycle Generators, landscape in Ontario bringing students excited about learning, 40 years, SOO has been providing water stewardship. The festivals COMMUNITIES Water Wheel Generator, Squishy thousands of elementary school connecting the community to the opportunities for individuals complement classroom lessons OPG is committed to building Circuits, Van der Graff Generator, children to local conservation education system, and teaching with intellectual disabilities. It and the Ontario School Curriculum, mutually beneficial working Eco Stories and more. areas, outdoor education centres, programs that are pertinent to maintains programs in 140 active and they also excite and motivate relationships with Indigenous streams and wetlands to learn the audience, all with the aim communities across Ontario, students to share their knowledge communities near its operations. For more information visit about one of our most valuable to increase graduation rates. reaching 21,000 participants that we are all responsible for OPG’s relationship with Ontario’s www.elephantthoughts.com natural resources, water. Education They bring high quality science annually. Participation in the maintaining healthy water systems Indigenous communities is founded specialists from the Children’s camp programming to remote program helps athletes acquire for future generations. on respect for their languages, Water Education Council (CWEC), First Nations with the goals of: skills and self-confidence that customs and cultural institutions. local teachers, volunteers, post- empowering Indigenous youth to influence their ability to succeed The CWEC, a charitable secondary students, conservation believe in themselves as students, 1 | Mayor John Henry (Oshawa), Police Chief in school, obtain employment, and organization, has been promoting In 2016, OPG supported 87 Indigenous Paul Martin (Durham Region), Scott Burns groups, industry and government relating First Nations culture and achieve personal goals. and facilitating water-based initiatives in the areas of education, VP (OPG Security), Glenn MacDonell CEO partners join together to provide values to science, cultivating (Special Olympics Ontario (SOO)) and athletes, education programs for children environment, and community. celebrate the 2016 SOO Provincial School students with this unique outdoor environmental stewardship, and For more information, visit www1. since 2001. Currently the CWEC Partner organizations included: First Championships. environmental learning opportunity. giving campers a fun week of specialolympicsontario.com supports 25 Children’s Water Nations, Métis Nation of Ontario, learning that they will remember. 2 | Bretton Christensen, OPG, demonstrates Festivals (CWF) across Ontario. Elephant Thoughts Educational how hydroelectric power is produced and At the festivals, children take part In 2016, with OPG Northwest and the importance of water safety to students OPG provides direct support to Outreach, Frontier College, Indspire, attending the 2016 Quinte (Tri-County) in a variety of activity stations Northeast Operations’ support, and participates in a number of the Little Native Hockey League, the Children’s Water Festival. where they learn the importance Elephant Thoughts provided one- these festivals in Eastern Ontario, Nishnawbe Aski Development Fund 3 | Camper at Elephant Thoughts OPG water plays in our daily lives, and week “electricity” science camps Durham, Haldimand, Haliburton- and The Anishinabek Nation 7th Electricity Camp, Mattagami First Nation, uses about water conservation and water for students in Kindergarten conducting and insulating play dough to learn Muskoka-Kawartha, Grey-Bruce, Generation Charity. about electric circuits.

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ARTS AND CULTURE was unveiled and opened to the Visitors to the memorial will view the contributions of Six Nations The memorial was made possible of this important and long public at Queenston Heights Park. magnificent bronze figures of and Native Allies in the War of 1812. by the generosity of citizens, the overdue memorial. Landscape of Nations: The Six Nations and Native Allies It serves as a living memorial to the Major John Norton (see photo 1) They are also asked to recognize Legacy Working Group, Town Commemorative Memorial contributions and sacrifices made and John Brant (see photo 3), the the historic Council of Peace and of Niagara-on-the-Lake, Niagara To learn more or plan a visit, go to www.landscapeofnations.com In 2009, a Legacy Working Group by First Nations and Métis forces on two primary Native leaders who Reconciliation held at Niagara on Parks Commission, Six Nations of the Niagara-on-the-Lake War of Queenston Heights and throughout led Six Nations and Native Ally Aug. 31 – Sept. 1, 1815, that restored Legacy Consortium, commissioned 1812 Bicentennial Committee was the War of 1812. It inspires citizens to forces at the Battle of Queenston peace among the Native nations artists Tom Ridout of Fleisher created to recognize the important learn and acknowledge the critical Heights and in other engagements. who fought on opposing sides at Ridout Partnership and Raymond role Native peoples played in role that Native peoples played in Visitors proceed along a walkway the time of the war. The memorial Skye, and the support of signature the defence of Upper Canada. the defence of this land and the representing the Two Row features indigenous plants and donors. Signature donors included Landscape architect Tom Ridout ability of Canada to remain free. The Wampum Belt, through a metal grasses that would have been found Government of Canada (Founding of Fleisher Ridout Partnership and memorial inspires remembrance, frame structure symbolizing a in the region during this period. An Donor), Anonymous (Title Donor), Raymond Skye, a renowned Six reinforces the need to renew historic longhouse, toward the Memory eastern white pine tree stands as Ontario Trillium Foundation, Walker Nations artist, were chosen bonds between Native peoples and Circle (see photo 2). The circle a symbol of the Haudenosaunee Industries, Casino Niagara, TD Bank, to collaborate on the memorial. Canadians, and enhances awareness consists of eight Queenston constitution known as the Great Law OPG, The Niagara Foundation On Oct. 2, 2016, Landscape of of the War of 1812 and its role in limestone walls, which emanate like of Peace. and other businesses, families Nations: The Six Nations and Native shaping the future of the country. a sunburst. At this gathering place, and individuals. OPG’s Niagara 1, 2 and 3 | Landscape of Nations, Queenston visitors are asked to remember Operations is a proud supporter Heights Park. Photos courtesy of © Alex Allies Commemorative Memorial Heidbuechel / Flashbox Photography.

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ECONOMIC

2 FINANCIAL STRENGTH

As a commercial enterprise, OPG’s lower operations, maintenance of all other generators. This lower financial priority is to achieve a and administration expenses, and cost helps moderate the price consistent level of strong financial higher revenues for stations in the customers pay. performance that delivers an contracted generation portfolio appropriate level of return on the segment, namely Lennox GS and The Ontario Energy Board (OEB) Shareholder’s investment and Atikokan GS. sets the prices for electricity positions the company for future generated from OPG’s regulated growth. Inherent in this priority are OPG manages an array of risks to nuclear and hydroelectric facilities. three objectives: mitigate potentially unfavourable The average sales price for the impact on the company’s financial regulated nuclear generation • Increase revenue, reduce costs performance. This includes risks segment during 2016 was 6.9 and achieve appropriate return related to rate regulation, financial cents per kilowatt hour markets and long-term obligations. (¢/kWh), compared to 6.5 ¢/kWh • Ensure availability of cost- OPG is also exposed to risks during 2015. The average sales effective funding for operational 1 such as weak electricity demand, price in 2016 for the regulated needs, generation development displacement of generation by hydroelectric segment was 4.4 projects and long-term competitors, and financial risk ¢/kWh, compared to 4.7 ¢/kWh OPG focuses on providing maximum value to the people In this section: obligations associated with energy trading. during 2015. Approximately 90 of Ontario by generating reliable electricity at a price that • Pursue opportunities to expand Detailed information about the per cent of OPG’s revenue comes • Financial performance moderates overall rates for Ontario electricity customers. the existing core business and company’s financial risks is available via regulated rates. Electricity OPG also provides economic value to Ontarians through • Cost of electricity capitalize on new growth paths in OPG’s 2016 Annual Report. generated from most of OPG’s employment, the purchase of goods and services, and unregulated assets is subject to • Dedicated nuclear funds Financial Performance contributions to government revenues. Ontario’s Low-Cost Energy Supply Agreements (ESAs) • Electricity generation Generator with the Independent Electricity and reliability OPG’s net income attributable to System Operator (IESO). the Shareholder was $436 million Regulated rates and ESAs provide • Investments in infrastructure OPG provides about half the power for 2016, compared to $402 million stable and predictable revenue and new generation capacity used in Ontario and represents in 2015. The increase was the streams, compared to potential about 20 per cent of a customer’s 1 | Pickering Nuclear GS. • Economic impact result of higher generation from fluctuations in revenue caused by bill. OPG currently generates the nuclear fleet, higher earnings increases or decreases in energy 2 | Darlington Energy Complex training facility. • Supply chain electricity that is about 40 per cent on the Nuclear Segregated Funds, market prices. less expensive than the average

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In May 2016, OPG filed a five- Dedicated Nuclear Funds based on periodically updated year application with the OEB reference plans approved by the GENERATION AND RELIABILITY for new base regulated prices Province under the ONFA, at least OPG is responsible for the long- for production from its regulated once every five years. In the fourth term management of used Electricity Generation Ensuring Reliability ELECTRICITY nuclear and hydroelectric facilities, quarter of 2016, OPG completed nuclear fuel bundles and low and PRODUCTION with a proposed effective date a comprehensive update of the intermediate level radioactive Total electricity generated OPG strives to operate and of Jan. 1, 2017. The application estimate for its obligations for waste, and the eventual increased in 2016 to 78.2 terawatt maintain its facilities to optimize seeks to ensure that prices allow nuclear waste management and 100 decommissioning of its nuclear hours (TWh) from 78.0 TWh in the reliability of its generating for sufficient cash flow to meet nuclear facilities decommissioning. generating stations and nuclear 2015. Higher nuclear generation, assets. OPG manages reliability the company’s liquidity needs, 80 waste facilities, including the primarily due to a lower number risks through equipment support cost-effective funding stations leased to Bruce Power. of non-refurbishment planned maintenance, inspection and for the Darlington Refurbishment outage days at Darlington testing programs, and by 60 project and other expenditures, Pursuant to the Ontario Nuclear Nuclear GS during 2016, was conducting engineering reviews LEARN MORE and maintain the company’s Funds Agreement (ONFA) partially offset by lower regulated and station condition assessments 40 investment grade credit rating, between OPG and the Province hydroelectric generation due to to identify and prioritize short- Terawatt Hours while also taking into account the of Ontario, OPG established a Ontario Energy Board higher volume of water spilled at term and long-term requirements 20 impact on customers. In addition, Used Fuel Segregated Fund and OPG’s hydroelectric stations in to sustain or improve performance. the application will further Additional information about the a Decommissioning Segregated 2016 as a result of more prevalent 0 challenge and incentivize OPG to Fund to fund future costs. OPG Ontario Energy Board (OEB) and surplus baseload generation OPG reports Nuclear Unit Capability 2012 2013 2014* 2015* 2016* find additional cost reductions and OPG’s submissions to the OEB can maintains these funds in third- conditions. OPG’s generation for Factor (UCF) as the reliability Nuclear efficiencies within its operations. be found at www.oeb.ca party custodial and trust accounts 2016 was also affected by the measure for its nuclear stations Hydro and Hydroelectric Availability for that are segregated from the rest Unit 2 refurbishment outage at Thermal of OPG’s assets. OPG’s required Darlington Nuclear GS, which the reliability of its hydroelectric * Includes OPG’s share of production from co-owned contributions to the Nuclear 1 | Sir Adam Beck I GS. commenced in October 2016. generating units. Effective in 2014, gas-fired facilities

Segregated Funds are determined 2 | Turbine inspection at R.H. Saunders GS. Thermal Equivalent Forced

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2

NUCLEAR UNIT HYDROELECTRIC THERMAL EQUIVALENT CAPABILITY FACTOR AVAILABILITY FORCED OUTAGE RATE*

100 100 100

1 80 80 80

Outage Rate (EFOR) is the key number of unplanned outage days The lower Thermal EFOR in 2016, 60 60 60 reliability measure for thermal at the station in 2016 as a result of compared to 2015, was primarily station performance. emergent discovery work during due to an outage in 2015 to Per Cent 40 Per Cent 40 Per Cent 40 planned outages. perform repair work at Lennox GS. The UCF at Darlington Nuclear 20 20 20 GS increased in 2016 compared The availability of OPG’s to 2015, primarily due to fewer hydroelectric generating stations 0 0 0 planned and unplanned outage decreased during 2016 compared 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2014 2015 2016 days at the station during 2016. to 2015. The decrease was The UCF excludes Unit 2 while it primarily due to the planned Unit Capability Factor Availability represents the amount Equivalent Forced Outage Rate is undergoing refurbishment. At reservoir refurbishment project represents energy generated, of time generating units are represents the amount of time Pickering Nuclear GS, the UCF at Sir Adam Beck Pump GS and adjusted for external constraints capable of providing service as a that generating units are forced 1 | Sir Adam Beck Pump GS. decreased in 2016 compared to other planned outage days. such as transmission or demand percentage of the total time for a out of service as a percentage | Turbine work to support the Darlington 2015, primarily due to a higher 2 limitations, as a percentage of respective period. (Good = ) of the amount of time available to Nuclear GS refurbishment. potential maximum generation operate. (Good = ) over a specified period. (Good = ) * Key indicator as of 2014.

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Economic Impact of Continued Darlington Operation

Continued operation of 2 Darlington Nuclear GS will create important long-term economic benefits for workers Unit 2, the physical separation of OPG has conducted assessments Extending Pickering’s operating and companies across Ontario. the unit under refurbishment from to demonstrate that extending life will require approval from the three operating units, was operations at Pickering Nuclear the Canadian Nuclear Safety Read more at www.opg.com/ completed in April 2017, signifying GS is safe, technically feasible and Commission (CNSC). OPG filed news-and-media/news-releases/ the completion of the first major has economic benefits for Ontario. the Pickering licence renewal Documents/20161012_CBOC_ segment of the project. The project Having Pickering available will application in August 2017 for EconomicReport.pdf is tracking on schedule and budget. provide Ontario with a source the CNSC’s approval in 2018. The 1 of baseload electricity during requested licence renewal will Pickering Nuclear Continued nuclear unit refurbishments at the span the planned extended Operations Darlington Nuclear GS and the operations period, through to INFRASTRUCTURE INVESTMENTS Pickering Nuclear GS has been Bruce Power GS, reducing the need the end of the planned period to safely producing electricity for for gas-fired capacity and energy defuel, dewater, and place the more than 40 years. In January imports. Extending operations will station in a safe state condition OPG produces electricity from 30 years. The scope of the industry benchmarking. The 2016, OPG and the Province also provide continued employment after shutdown. OPG will work a diversified portfolio of project, which is the largest project also has an experienced announced plans to pursue for approximately 3,000 regular closely with its community partners generating assets. In 2016, OPG clean energy project in management team and a robust continued operation of the employees at OPG, and will reduce to ensure the station is operated continued to invest in infrastructure Canada, includes infrastructure risk management strategy. A Pickering station to 2024. OPG’s carbon dioxide emissions by reliably, and to the highest renewal and modernization upgrades at the Darlington site key preparation strategy was objective is to maximize the safe approximately 17 million tonnes standards of safety, security and and to pursue projects to increase and the replacement, repair the construction of a training and reliable operating life of the over the 2021 to 2024 period. For environmental stewardship. generation capacity. and maintenance of station centre with a state-of-the-art Pickering units. Under OPG’s plan, electricity customers, the primary components. The refurbishment of full-size reactor mock-up to test all six operating units at the station benefit is to moderate electricity Darlington is a multi-phase project specialized tools and train workers. Nuclear would operate to 2022, at which rate impacts. that was initiated in 2007, and is point two units would be shut scheduled to be completed by In 2016, the Darlington Darlington Refurbishment Project down and the remaining four units 2026. The total project budget is Refurbishment project transitioned would continue to operate to 2024. Darlington Nuclear GS, rated as $12.8 billion, including capitalized from the planning phase to the one of the top performing nuclear interest and escalation. execution phase. The first unit to stations in the world, has been be refurbished, Unit 2, was taken one of Ontario’s most important “We have a leadership team relentlessly focused on delivering results, OPG is well-positioned to deliver safely offline as planned in mid a workforce committed to excellence in project execution and assets since the early 1990s. A the Darlington Refurbishment October. Defuelling of the reactor, homegrown suppliers and partners who understand the importance mid-life refurbishment of the project on time and on the first critical refurbishment of this effort. We all understand refurbishing Darlington is about the station will ensure the continuation budget. OPG has built a strong activity undertaken once the unit future of Ontario.” of the station’s role as a key foundation for success based was removed from service, was 1 | Darlington Nuclear GS Unit 2 turbine hall. supplier of clean, safe and on years of detailed planning, safely completed in January 2017 JEFF LYASH OPG President and CEO 2 | Nuclear is Ontario’s best option for cost- affordable power for another extensive inspections, and ahead of schedule. Islanding of effective, greenhouse gas emissions-free, reliable baseload generation.

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Hydro Upgrades Add More Years of Clean Power

Refurbishment of Chats Falls GS will ensure another 40 years of safety and performance.

Read more at www.opg.com/ news-and-media/our-stories/ Documents/20160928_ ChatsFalls.pdf

1 2

Hydroelectric This project is one in a series OPG and Coral Rapids Power Sir Adam Beck Pump GS project was completed ahead of • Completion of a runner upgrade, of successful development worked collaboratively with Reservoir Refurbishment the originally planned in-service headgate replacement and Peter Sutherland Sr. GS partnerships with Ontario’s numerous stakeholders including The Sir Adam Beck Pump GS date and below the approved rehabilitation of Unit 2 of Indigenous communities. provincial government ministries, 750-acre reservoir refurbishment budget of $58 million. Harmon GS In 2016, OPG and its partner The partnership between OPG federal government departments, project, which began in April 2016, Coral Rapids Power, a wholly- • Completion of headgate and Coral Rapids Power was and consultants to ensure the was completed and returned to Overhauls and Improvements owned company of the Taykwa replacement at Units 1 and 2 of founded on respect and trust, project was completed safely and service in February 2017. This OPG’s hydroelectric stations Tagamou First Nation, continued Kipling GS and resulted in local employment, with environmental integrity. project included the installation are the oldest and most construction on the new Peter skills development and a long-term of a partial new liner and established components of • Completion of concrete Sutherland Sr. GS north of revenue stream for the local construction of a grout curtain OPG’s energy portfolio and have rehabilitation of the main dam at Timmins. The station was placed community and OPG. Coral Rapids in the bedrock foundation of the formed the basis of Ontario’s Chats Falls GS in-service at the end of the first 1 and 2 | The new Peter Sutherland Power has a 33 per cent interest Sr. GS will provide lasting economic reservoir dyke. The refurbishment power supply for more than a quarter of 2017, ahead of the opportunities for the people of Taykwa • Continued work on the in Peter Sutherland Sr. GS. is expected to add another 50 century. As part of its commitment originally planned schedule. Tagamou Nation. rehabilitation of Unit 10 of Sir years of life to the reservoir. to operational excellence, OPG The 28 MW station provides Adam Beck 1 GS, Unit 5 of DeCew continues to make investments clean, renewable and reliable Falls 1 GS, Unit 1 of Harmon GS, The Sir Adam Beck Pump GS in its existing hydroelectric hydroelectric power for up to and the replacement of the “Ontario’s newest waterpower generating station further demonstrates facility is integral to OPG’s generating fleet. During 2016, 25,000 homes. The project is Shebandowan Lake Control Dam our government’s commitment to building a clean and reliable hydroelectric fleet as it allows OPG continued to execute a expected to close below the at Kakabeka Falls GS electricity system. Not only will it help to support a healthier water to be diverted from the number of projects, including: approved budget of $300 million environment and cleaner air for today and future generations, this Sir Adam Beck complex during following the completion of site project highlights a partnership between Taykwa Tagamou Nation and periods of low electricity demand • Completion of major equipment remediation, camp dismantling, OPG that delivered meaningful economic benefits to the local First and stored in the reservoir, to be overhauls and rehabilitation demobilization and other project Nation community.” used to generate up to 600 MW work on Unit 5 of Sir Adam close-out activities. GLENN THIBEAULT of electricity during subsequent Beck Pump GS and Unit 2 of Ontario Energy Minister periods of high demand. The Whitedog Falls GS

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Growth Opportunities In March 2016, Nanticoke Solar Ontario Ministry of Energy has LP was selected, through indicated that the development of the Independent Electricity the updated LTEP, scheduled to OPG seeks to continue to expand System Operator’s (IESO) Large be published in the later part of beyond its core generation Renewable Procurement program, 2017, will balance the principles of business through investments in to develop a 44 MW solar facility affordability, reliability, clean innovation and emergent low- at OPG’s Nanticoke GS site and energy, community and Indigenous carbon technologies, including adjacent lands. The project is engagement, as well as conservation selective solar generation, planned to commence in the first and demand management. OPG’s energy storage, micro-grid, half of 2018 and it is expected to business growth opportunities electrification of transportation be completed in the first quarter may be affected by the results of and other development. OPG of 2019. the 2017 LTEP. is also considering longer-term growth paths that include broader Between October and December electricity sector opportunities, 2016, the Government of Ontario within and outside Ontario. Growth conducted a consultation opportunities may be pursued in process to update its Long-Term partnership with other commercial Energy Plan (LTEP). OPG made entities where appropriate a formal submission as part of synergies exist and are aligned the consultation as it relates to with OPG’s business objectives. OPG’s core generation business 1 | OPG employs a highly skilled workforce and growth opportunities. The across Ontario. 1

OPG’S ROLE IN ONTARIO’S LONG-TERM ENERGY PLAN PROCUREMENT AND PAYMENTS

Economic Impact $1.4 billion. The majority of and services. OPG’s supply chain OPG is well-positioned to provide • Partnerships with Ontario’s employees live in Ontario and processes are consistent with Ontario with the electricity it Indigenous communities yield Electricity generation is a capital- purchase their goods and services approved financial management needs today, and to support its renewable power and lasting intensive business. It requires locally, thereby transferring wealth and control standards, and all future electrification plans. economic benefits continued investment in plants back into the economy. applicable legal requirements. • OPG is driving innovation OPG supports Ontario’s energy and technologies to maintain and through clean technologies Payments made by OPG to its OPG requires suppliers and plan in the following ways: improve operating performance, to increase generation capacity shareholder, the Province, also contractors who wish to • OPG’s low-cost power helps Additional information about of existing stations, and to invest benefit the economy and the do business with OPG be consumers OPG’s perspective on Ontario’s in the development of new people of Ontario. Payments to pre-qualified based on a Long-Term Energy Plan is the Province include payments demonstration of their ability to • Nuclear assets provide generating stations, emerging available at www.opg.com/news- in lieu of taxes, gross revenue manage quality, health and safety, economic benefits and reduce technologies and other business and-media/Reports/OPG_2017_ charges, and current income and environmental aspects, in greenhouse gas emissions growth opportunities. When LTEP_Submission.pdf making these investments, OPG tax payments. These payments addition to satisfying technical • Hydroelectric investments will provides support to the economy totalled $527 million in 2016. and commercial requirements. build on a legacy of renewable, through the purchase of goods Contracts are awarded following low-cost power and services. During 2016, OPG Supply Chain OPG’s established procurement purchased $2.6 billion in goods activity procedures. OPG’s suppliers are expected to ensure and services. OPG’s supply chain organization full compliance to OPG’s Supplier supports the company through Code of Conduct and Code of In 2016, compensation to the cost-effective acquisition and Business Conduct in their business employees totalled approximately timely availability of materials

ONTARIO POWER GENERATION 2016 SUSTAINABILITY REPORT | ECONOMIC 84 85

dealings with OPG. Certain suppliers may also be subject LEARN MORE to OPG audits or assessments, APPENDICES which are commensurate with Investing in Ontario their approved scope of work and specified quality requirements. The Darlington Refurbishment OPG has approximately 2,000 project involves more than 60 active suppliers. major companies and contractors supplying components. OPG is also proud to be a strong supporter of local businesses. Read more at www.opg. Recent assessments found that 92 com/news-and-media/our- per cent of OPG’s spending was stories/Documents/20160614_ executed through suppliers within RefurbNuTech.pdf Canada with 89 per cent of them within Ontario. OPG also has strong working relationships with its Indigenous suppliers, providing jobs and training to the local communities.

SPENDING ON GOODS EMPLOYEE PAYMENTS TO THE AND SERVICES COMPENSATION PROVINCE OF ONTARIO

3.03.03.0 2.02.02.0 600600600

2.52.52.5 500500500 1.5 1.51.5 2.02.02.0 400400400

1.5 1.51.5 1.0 1.01.0 300300300 $ Billion $ Billion $ Billion $ Billion $ Billion $ Billion $ Million $ Million $ Million 1.0 1.01.0 200200200 0.50.50.5 0.50.50.5 100100100

0.00.00.0 0.00.00.0 0 0 0 201220122012201320132013201420142014201520152015 2016 2016 2016 201220122012201320132013201420142014201520152015 2016 2016 2016 201220122012201320132013201420142014201520152015 2016 2016 2016

ONTARIO POWER GENERATION 86 87

APPENDIX A GENERATION CAPACITY AND PRODUCTION APPENDIX B SUSTAINABILITY PERFORMANCE

Net Generation (GWh) HYDROELECTRIC Net Generation INDICATOR 2016 2015 2014 2013 2012 Capacity (MW) 2016 2015 2014 2013 2012 Regulatory compliance Central Operations 124 493 564 692 645 519 Includes 26 stations, headquarters in North Bay Significant Environmental Events 0 0 0 0 0

Eastern Operations Environmental Infractions 6 14 16 13 14 2,571 12,535 12,241 13,281 12,774 11,632 Includes 10 stations, headquarters in Renfrew Environmental Penalties 0 1 4 1 3 Niagara Operations 2,272 12,015 12,547 12,267 12,372 11,953 Reportable spills to the environment Includes 5 stations, headquarters in Niagara area Category A Spills – Very Serious 0 0 0 0 0 Northeast Operations 1,781 3,779 4,057 3,802 3,359 2,982 Includes 13 stations, headquarters in Timmins Category B Spills – Serious 0 0 0 0 0

Northwest Operations Category C Spills – Less Serious 10 12 14 9 9 687 3,089 3,497 3,448 3,583 3,528 Includes 11 stations, headquarters in Thunder Bay Atmospheric emissions Net Generation Net Generation (GWh) Changes as of 2014: Added OPG’s 50 per cent share of emissions from co-owned facilities; added emissions from thermal NUCLEAR Capacity (MW) non-generation sources (i.e. auxiliary boilers); began reporting carbon dioxide equivalent (CO2 eq) emissions in place of 2016 2015 2014 2013 2012 carbon dioxide emissions. Darlington Nuclear Atmospheric emissions - OPG Located on Lake Ontario in the Municipality of Clarington. 2,634 25,619 23,293 27,960 25,051 28,308 The station has four units. One unit was taken offline in Carbon Dioxide (tonnes, CO eq as of 2014) 611,666 537,737 561,656 3,195,649 4,528,023 October 2016 for refurbishment. 2 Sulphur Dioxide (tonnes) 274 109 552 9,812 9,705 Pickering Nuclear

Located on Lake Ontario in Pickering. The station has six 3,094 19,958 21,231 20,045 19,642 20,735 Nitrogen Oxides (tonnes, as NO2) 582 476 703 5,018 6,556 operating units and two units in a safe shutdown state. Atmospheric emissions - Thermal (1) Net Generation Net Generation (GWh) THERMAL Carbon Dioxide (tonnes, CO eq as of 2014) 598,586 520,130 552,499 3,190,396 4,517,690 Capacity (MW) 2016 2015 2014 2013 2012 2 Atikokan Generating Station 204,176 194,298 41,757 0 44,830 Atikokan Generating Station Located near the town of Atikokan in northwestern 205 149 109 10 -18 13 Brighton Beach 46,326 47,359 48,542 Not reported Not reported Ontario. The station has one biomass unit. The station stopped using coal in 2012. Lambton Generating Station 1,171 3,253 7,845 1,592,290 2,237,250

Brighton Beach (2) Lennox Generating Station 118,372 55,661 161,062 33,386 155,550 Not Not Located in Windsor. The station is a combined cycle 280 113 115 100 reported reported Nanticoke Generating Station 5,817 13,968 1,528,800 2,008,720 generating station fuelled by natural gas. 0

Lambton Generating Station Portlands Energy Centre 205,291 207,101 185,685 Not reported Not reported Located on the St. Clair River south of Sarnia. The station 0 -23 -26 -42 1,552 2,218 Thunder Bay Generating Station 23,251 6,641 93,640 35,920 71,340 was retired from service in 2013. Sulphur Dioxide (tonnes) 270 104 550 9,812 9,705 Lennox Generating Station Located on Lake Ontario in the town of Greater Napanee. 2,100 27 -38 73 -29 104 Atikokan Generating Station 0 0 0 0 207 The station has four oil and/or natural gas-fired units. Brighton Beach 0 0 0 Not reported Not reported Nanticoke Generating Station Lambton Generating Station 0 0 1,288 2,474 Located on Lake Erie in Haldimand County. The station 0 -24 -36 -55 1,361 1,731 0 was retired from service in 2013. Lennox Generating Station 270 104 327 35 39 Portlands Energy Centre (2) Not Not Nanticoke Generating Station 0 0 0 8,409 6,843 275 509 513 500 Located in Toronto. The station is a combined cycle reported reported generating station fuelled by natural gas. Portlands Energy Centre 0 0 0 Not reported Not reported

Thunder Bay Generating Station Thunder Bay Generating Station 0 0.15 223 80 142 Located in Thunder Bay. The station has one advanced 153 -16 -34 43 -16 16 383 654 4,989 6,515 biomass unit. The station stopped using coal in 2014. Nitrogen Oxides (tonnes, as NO2) 505 Atikokan Generating Station 152 43 0 100 Net Generation Net Generation (GWh) 167 WIND Capacity (MW) 2016 2015 2014 2013 2012 Brighton Beach 22 22 25 Not reported Not reported

Includes one turbine located in Pickering. 1.8 2.5 3.0 3.4 3.5 3.7 Lambton Generating Station 2 3 6 2,118 3,019

Lennox Generating Station 164 64 219 35 144 (1) Negative net generation indicates the station consumed more electricity from the grid than it produced. (2) Represents OPG’s 50 per cent share of capacity and generation. Reported by OPG as of 2014.

ONTARIO POWER GENERATION 2016 SUSTAINABILITY REPORT | APPENDICES 88 89

INDICATOR 2016 2015 2014 2013 2012 INDICATOR 2016 2015 2014 2013 2012

Nanticoke Generating Station 0 5 11 2,761 3,021 Used Fuel Bundles in Storage at Darlington 524,828 497,491 478,026 455,301 435,266 Nuclear Portlands Energy Centre 131 132 138 Not reported Not reported Low and Intermediate Radioactive Waste 3,433 2,510 2,384 2,616 2,762 Thunder Bay Generating Station 20 5 212 75 232 Produced (m3)

Mercury (kilograms) 0 0 2.3 28 25 Low and Intermediate Radioactive Waste 1,479 3,247 2,515 2,455 2,639 Stored (m3) (includes waste produced by Atmospheric emissions - Nuclear Bruce Power) Carbon Dioxide (tonnes, CO eq as of 2014) 13,080 17,607 9,157 5,253 10,333 2 PCB management Sulphur Dioxide (tonnes) 3.8 4.4 2.3 0 0.1 High Level PCB Material in Storage at Year- 0.1 0.2 0 0.4 0.1 End(1) (tonnes) Nitrogen Oxides (tonnes, as NO2) 77 93 48 29 40 High Level PCB Material Sent for 1.6 3.9 9.7 27.6 60.9 Waste Incinerator Dioxins and Furans 3.15 4.82 Exempt from <1.80 <3.03 Destruction(1) (tonnes) Toxicity Equivalent Emissions Test Result testing 3 (pg TEQ/Rm ) Low Level PCB Material in Storage at Year- 0.7 0.4 1.7 0.8 0.4 (2) Atmospheric emission rates End (tonnes) Atmospheric emission rates - OPG Low Level PCB Material Sent for 6.0 23.5 2.4 6.1 184.5 Destruction(2) (tonnes) Changes as of 2014: Added OPG’s 50 per cent share of emissions from co-owned facilities; added emissions from thermal

non-generation sources (i.e. auxiliary boilers); began reporting carbon dioxide equivalent (CO2 eq) emissions in place of carbon Estimated Inventory of Low Level PCB 0.3 0.3 9.4 14.0 63 dioxide emissions. Material in Service(2) (tonnes)

Carbon Dioxide (tonnes/GWh-net, 7.8 6.9 6.8 40 54 (1) High level: ≥ 500 mg/kg PCB (2) Low level: ≥ 50 to < 500 mg/kg PCB CO2 eq as of 2014) Hazardous waste generation Sulphur Dioxide (tonnes/GWh-net) 0.004 0.001 0.01 0.12 0.12 Solids (tonnes) 389 181* 1,283 113 1,125

Nitrogen Oxides (tonnes/GWh-net, as NO2) 0.01 0.006 0.01 0.06 0.08 Liquids (kilolitres) 1,312 2,125* 3,544 1,175 1,615 Atmospheric emission rates - Thermal Thermal generation sources only. Changes as of 2014: Added OPG’s 50 per cent share of emissions from co-owned facilities; Water use began reporting carbon dioxide equivalent (CO eq) emissions in place of carbon dioxide emissions. 2 Hydroelectric Turbine Flows (million m³) 426,845 443,100 463,110 443,998 404,229 Carbon Dioxide (tonnes/GWh-net, 731 727 694 1,119 1,107 Nuclear and Thermal Non-Consumptive 8,667 8,850 8,677 9,785 10,722 CO eq as of 2014) 2 Cooling and Service Water Use (million m3) Sulphur Dioxide (tonnes/GWh-net) 0.35 0.16 0.76 3.44 2.38 Internal energy efficiency Nitrogen Oxides (tonnes/GWh-net, as NO ) 0.60 0.52 0.84 1.75 1.60 2 Internal Energy Saving - Cumulative since 2,557 2,542 2,525 2,507 2,493 Radioactive emissions 1994 (GWh/year) Tritium to Air (curies) 23,357 21,321 23,280 17,072 17,976 Annual Incremental Energy Saving 15.6 17.0 17.9 13.9 12.3 (GWh/year) Tritium to Water (curies) 17,730 16,566 14,007 11,164 11,211 Occupational safety Carbon-14 to Air (curies) 106 92 84 73 76 Accident Severity Rate (days lost per 2.59 0.50 1.31 0.94 2.4 Public radiation dose 200,000 hours)

Pickering Nuclear Critical Group Dose 1.5 1.2 1.2 1.1 1.1 All Injury Rate (injuries per 200,000 hours) 0.56 0.39 0.36 0.61 0.63 (microsieverts) Fatalities 0 0 0 0 0 Darlington Nuclear Critical Group Dose 0.6 0.5 0.6 0.6 0.6 (microsieverts) Gross energy generation Includes OPG’s 50 per cent share of generation from co-owned facilities as of 2014. Excludes power purchases. Radioactive waste management Total Energy Generated (GWh) 81,678 81,561 85,814 84,136 87,925 Annual Production of Used Fuel (tonnes 1,526 1,525 1,561 1,392 1,439 of uranium) (includes waste produced by Thermal (GWh) 902 823 851 3,354 4,737 Bruce Power) Hydroelectric (GWh) 32,146 33,313 33,793 33,068 31,015 Used Fuel in Storage (tonnes of uranium) 46,878 45,243 43,714 42,152 40,647 Nuclear (GWh) 47,422 51,166 47,711 52,169 (includes waste produced by Bruce Power) 48,628 Wind (GWh) 2.5 3.0 3.4 3.5 3.7 Used Fuel Bundles in Storage at Pickering 727,749 710,877 693,049 676,059 662,437 Nuclear

* Value restated from the 2015 Sustainability Report.

ONTARIO POWER GENERATION 2016 SUSTAINABILITY REPORT | APPENDICES 90 91

INDICATOR 2016 2015 2014 2013 2012 Data Reported to Environment and Climate Change Canada’s National Pollutant Release 2015 2014 2013 2012 2011 Net energy generation Inventory (NPRI) Includes OPG’s 50 per cent share of generation from co-owned facilities as of 2014. Excludes power purchases. Total releases to air, water and land Total Energy Output (GWh) 78,225 78,037 82,127* 80,280 83,745 Aluminum (tonnes) Not reported 0.509 35.6 40.5 68.1

Thermal (GWh) (net of consumption at 735 605 629 2,851 4,082 Ammonia (tonnes) Not reported Not reported 22.60* 33.48 35.12* retired stations) Arsenic (kilograms) Not reported Not reported 233 302* 279* Hydroelectric (GWh) 31,910 32,905 33,489 32,733 30,616 Cadmium (kilograms) 0.32 Not reported 5.1 5.8* 6.7* Nuclear (GWh) 45,577 44,524 48,005* 44,693 49,043 Carbon Monoxide (tonnes) 51.8 69 846 1,345 955 Wind (GWh) 2.5 3.0 3.4 3.5 3.7 Chromium (tonnes) Not reported Not reported Not reported 0.168* 0.228* Generation Energy Efficiency (per cent) 95.77 95.68 95.70 95.42 95.25 Copper (tonnes) Not reported Not reported* 0.042 0.042 1.742* EcoLogoM-certified green power Dioxins and Furans (grams Toxic 0.0107 0.043 0.087 0.107 0.075* Net Energy Generation (GWh) 487 558 674 625 507 Equivalent) (26 small hydroelectric stations and 1 wind turbine) Hexachlorobenzene (grams) 0.0259 0.0259* 0.017 0.029* 0.044*

Generation performance Hydrazine (kilograms) 1,011 504 311* 330* 310

Nuclear Unit Capability Factor (per cent) 82.7 78.0 84.3 78.6 86.1 Hydrochloric Acid (tonnes) Not reported Not reported 185 194 307*

Hydroelectric Availability (per cent) 87.5 90.9 91.7 91.5 91.2 Hydrogen Fluoride (tonnes) Not reported Not reported 31 34 50

Thermal Equivalent Forced Outage Rate 1.6 11.2 9.2 Not reported Not reported Lead (kilograms) Not reported 0.039* 70.3* 83.8* 132.9* (per cent) Manganese (tonnes) Not reported Not reported 0.096 0.137* 5.48 Economic contributions Mercury (kilograms) Not reported 0.017* 29.13 22.96* 35.14* Spending on Goods and Services 2.6 2.2 2.1 2.2 2.1 (billions of dollars) Nitrogen Oxides expressed as NO2 (tonnes) 289 524 5,037 6,572 5,855 (includes small generation sources) Employee Compensation (billions of dollars) 1.42 1.41 1.43 1.50 1.51 Phosphorus (tonnes) Not reported Not reported 4.13* 4.773* 7.384* Payments to the Province of Ontario 527 383 415 375 324 (millions of dollars) PM - Total Particulate Matter (tonnes) Not reported Not reported* 416 385 468 PM10 - Particulate Matter ≤10 microns Not reported 5.69* 253 273 324 * Value restated from the 2015 Sustainability Report. (tonnes) PM2.5 - Particulate Matter ≤ 2.5 microns 0.77 4.15* 143 180 169 (tonnes)

Selenium (kilograms) Not reported Not reported 857 996* 1,359*

Sulphur Dioxide (tonnes) 104 550 9,752 9,706 11,264

Sulphuric Acid (tonnes) 0.015 0.048 214.005 294.006 188.006

Vanadium (tonnes) Not reported Not reported 0.374 0.405* 0.619*

Volatile Organic Compounds (tonnes) Not reported Not reported 21.3 27 24

Zinc (tonnes) Not reported Not reported 0.102* 1.52* 1.4*

For detailed information about OPG’s releases to air, water and land, please visit the NPRI website at www.ec.gc.ca/inrp-npri. NPRI data for 2016 was not available at the time of publishing. *Value restated from the 2015 Sustainability Report.

ONTARIO POWER GENERATION 2016 SUSTAINABILITY REPORT | APPENDICES 92 93

APPENDIX C GRI CONTENT INDEX This report references selected disclosures from the Global Reporting Initiative (GRI) Disclosure Description Page(s) Sustainability Reporting Standards and Electric Utilities Sector Disclosures. GRI 200: Economic Disclosure Description Page(s) Economic performance GRI 102: General Disclosures 103 Management approach 11-12, 23, 72-73 Organizational profile 201-1 Direct economic value generated and distributed 67, 73, 83-84, 102-1 Name of the organization 4 90

102-2 Activities, brands, products, and services 4-5 201-2 Financial implications and other risks and opportunities due to climate change 38-41

102-3 Location of headquarters 4, back cover Indirect economic impacts

102-4 Location of operations 4, 6 103 Management approach 11-12, 23, 56, 78

102-5 Ownership and legal form 4 203-1 Infrastructure investments and services supported 78-82

102-6 Markets served 4, 6 203-2 Significant indirect economic impacts 56, 73-74, 78

102-7 Scale of the organization 4-6, 64 Procurement practices

102-8 Information on employees and other workers 64 103 Management approach 11-12, 23, 83-84

102-9 Supply chain 83-84 204-1 Proportion of spending on local suppliers 84

102-10 Significant changes to the organization 4, 20-23 Availability and reliability

EU1 Installed capacity 4-5, 86 103 Management approach 11-12, 23, 75-77 Plant decommissioning EU2 Net energy output 4-5, 75, 90 Strategy 103 Management approach 74 102-14 Statement from senior decision-maker 8-9 GRI 300: Environmental Water 102-15 Key impacts, risks, and opportunities 17-18, 20-23 103 Management approach 11-12, 21, 48 Ethics and integrity 303-1 Water withdrawal by source 89 102-16 Values, principles, standards, and norms of behaviour 15 Biodiversity Governance 103 Management approach 11-12, 20, 31-37 102-18 Governance structure 18-19 304-2 Significant impacts of activities, products, and services on biodiversity 31 102-19 Delegating authority 15-16 304-3 Habitats protected or restored 31-37 102-20 Executive-level responsibility for economic, environmental, and social topics 19 Emissions Stakeholder engagement 103 Management approach 11-12, 20-21, 38 102-40 List of stakeholder groups 51-53 305-1 Direct greenhouse gas emissions 39, 87-88 102-41 Collective bargaining agreements 64 305-5 Reduction of greenhouse gas emissions 38 102-43 Approach to stakeholder engagement 50-53 305-7 Nitrogen oxides, sulphur oxides, and other significant air emissions 87-88, 91 Report practice Effluents and waste 102-46 Defining report content and topic boundaries 10-13 102-47 List of material topics 11-12 103 Management approach 11-12, 20-21, 28, 45-46 102-50 Reporting period 10 306-2 Waste by type and disposal method 45-46, 88-89 102-51 Date of most recent report 10 306-3 Significant spills 28, 87 102-52 Reporting cycle 10 Environmental compliance 102-53 Contact point for questions regarding the report 13 103 Management approach 11-12, 20-21, 102-55 GRI content index 92-94 26-27

102-56 External assurance 13 307-1 Non-compliance with environmental laws and regulations 27-28, 87

ONTARIO POWER GENERATION 2016 SUSTAINABILITY REPORT | APPENDICES 94

Disclosure Description Page(s) GRI 400: Social Occupational health and safety 103 Management approach 11-12, 22, 58-60

403-2 Rates of injury 58-59, 89 Local communities 103 Management approach 11-12, 22, 67

413-1 Local community engagement and development programs 67-71 Emergency planning and response 103 Management approach 11-12, 22, 62-63 Customer health and safety 103 Management approach 11-12, 21, 44

ONTARIO POWER GENERATION This report is also available on our website: www.opg.com Ontario Power Generation Inc. head office is located at 700 University Avenue, Toronto, Ontario M5G 1X6; Telephone 416-592-2555 or 877-592-2555.

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