In a conference call with reporters today, Ontario Power Generation President Tom Mitchell warned the province's single largest electrical generating company is seeing falling revenues due to what he called a "de facto rate freeze " since 2008, the last time the Ontario Energy Board increased the base rate at which OPG can sell its electricity.
"I will caution that we cannot continue indefinitely without any increase in our rates," Mitchell said.
Mitchell was reacting in part to the release of OPG's second-quarter financial reports, which show the Crown corporation's revenue in the first six months of the year falling from $197 million in 2012 to $101 million in 2013, an almost 50-per cent decline.
Much of that loss occurred in the first quarter, when OPG posted a $126 million decline in revenue due to the establishment of a regulatory deferral account and lower earnings from its nuclear funds.
"While this decrease was mainly a result of reduced nuclear generation, it also reflects the comparatively low prices that we receive," Mitchell said. Pickering's availability for power generation fell from 79 per cent in the first quarter to just 65.9 in the second.
Generation from OPG fell from 42.5 terawatt-hours in 2012 to 41 terawatt-hours in 2013 for the first six months of each year.
Note: This article has been corrected from an earlier version, which incorrectly stated OPG's revenue numbers from electricity sales. QP Briefing regrets the error.

OPG president warns ‘de facto rate freeze’ has to end

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