ONTARIO POWER GENERATIONDarlington Refurbishment Newsletter

WE’RE READY FOR THE DARLINGTON REFURBISHMENTOntario Power Generation (OPG) is continuing its work towards the refurbishment of the Darlington Nuclear Generating Station. Mid-life refurbishment is a planned part of the station’s life. It involves replacing major reactor components and a tremendous amount of work to maintain, upgrade and refurbish other important plant systems, including nuclear, conventional and safety systems. It is a large project spanning about 15 years but the plant continues to produce electricity throughout the process.

Darlington is one of the top performing CANDU stations in the world and recently received its best ever rating during an industry peer evaluation. Its conventional and radiological safety record is outstanding.

It achieved a first in the nuclear industry – over 12.7 million hours worked without a lost time injury. The Darlington station is well maintained, has a committed and highly trained workforce, and produces virtually no greenhouse gas emissions.

Refurbishment of Darlington will provide another 30 years of service beyond project completion from a high-performing station, which has been the mainstay of the electricity system. OPG has been making significant progress on the work needed to carry out a successful refurbishment. This upfront investment is one of the keys to success.

DARLINGTON ENERGY COMPLEX Last summer we took ownership of the Darlington Energy Complex (DEC) and now have approximately 450 people working there. In addition to office space, the DEC will house the new visitor centre, a 70,000 square foot warehouse, and a technologically advanced training facility.

STATE OF THE ART TRAINING FACILITYOPG’s new state-of-the-art training facility inside the DEC is nearly complete, with a full-scale, non-functioning mock up of a Darlington reactor. Workers will be trained and tested on the challenges, constraints and potential hazards they may face when executing work at the reactor face. (continued on page 2)

Reactor mock-up under construction

Darlington Energy Complex located at 1855 Energy Drive in Courtice

What’s inside

Page 2 • Contract Partners

Page 3 • Regulatory Approvals

Page 3 • Site Investments

Page 4 • Keeping You Informed

WINTER 2014

(continued from page 1)

Specialized tooling is also being designed and built to support refurbishment work. The new tools will be tested and the work practised to determine the correct time and precise sequence needed for executing each refurbishment activity. Doing this will confirm the tools do what they are supposed to do, help to establish the critical path for the project and provide certainty.

CONTRACT PARTNERSRefurbishment involves inspecting, servicing, and replacing major components such as the fuel channels and feeders, fuelling machines, steam generators and turbine generators, in all four Darlington reactors. OPG is working with a range of companies who have the necessary expertise and skills. These companies are the single points of accountability for design, procurement, and construction activities in their area of specialization. Often they are also the original equipment manufacturer. All of the major contracts will be in place by the end of 2014.

2 ONTARIO POWER GENERATION

Mark Arnone, VP Refurbishment Execution, speaking at

Aecon Construction Group Inc.’s Safety Day held in the

DEC warehouse on October 3, 2013

Reactor mock-up construction

LIST OF PRIME CONTRACT PARTNERS:• Alstom Power & Transport Canada Inc.

– Turbine Generators

• AMEC NSS – Technical and Contract Support Services

• Babcock and Wilcox Canada Ltd/Candu Energy Inc. – Steam Generators

• Black & McDonald – Extended Services Master Service Agreement

• E.S. Fox Ltd. – Extended Services Master Service Agreement

• GE Hitachi Nuclear Energy Canada – Fuel Handling System

• SNC-Lavalin Nuclear Inc./Aecon Construction Group Inc. Joint Venture – Fuel Channel and Feeder Tube Replacement – Turbine Generators

• Worley Parsons – Technical and Contract Support Services

DARLINGTON REFURBISHMENT NEWSLETTER

The Canadian Manufacturers and Exporters report that 15,600 people are employed in the operation and support of nuclear plants in Ontario, and OPG estimates are that up to 2,000 more will be employed for refurbishment of Darlington. Darlington Refurbishment provides employment for new nuclear energy workers to replace retirees, creates and maintains new and existing business activity and improves the Region’s economic viability.

ONTARIO POWER GENERATION 3

REGULATORY APPROVALSThe Canadian Nuclear Safety Commission (CNSC) is the sole authority for regulating the use of all nuclear energy and materials in Canada. OPG is required to demonstrate to the CNSC that the work for Darlington refurbishment is set out in an Integrated Implementation Plan, building on the results of an Environmental Assessment and an Integrated Safety Review.

In December 2013, OPG made a number of submissions to the CNSC including:

• the Integrated Implementation Plan which is an assessment of the plant to ensure it conforms to modern standards and practices, and assurance that arrangements are in place to maintain plant safety for long-term operation, and

• a Global Assessment Report demonstrating that the improvements, when implemented, will result in Darlington being even safer and more reliable than it is today.

Last fall, OPG also submitted an application for the renewal of the Darlington Power Reactor Operating Licence (with a licence term of up to 14 years to cover the time period required for refurbishment) and a Return to Service Plan (that describes how we will return each reactor unit back to service following its refurbishment).

The CNSC is now reviewing these documents and will hold public hearings later in 2014. OPG encourages everyone to participate as community and stakeholder views are important to the review process. More information will be available on the OPG web site and at the CNSC Darlington community page.

SITE INVESTMENTSConstruction is currently underway on several site infrastructure improvements and on new or upgraded facilities that we need to have in place before the first refurbishment outage in 2016.

• In December we opened a new 70,000 square foot maintenance facility with maintenance shops, computer development labs, and storage and support rooms;

• The municipal water and sewer connections are basically complete, including new main lines for domestic and fire water as well as sanitary pumping stations;

• We are installing additional electrical distribution services to accommodate the new facilities and buildings on site;

• Installation of the heavy water (D2O) storage and drum handling facility commenced last fall;

• Site clearing and construction will start this spring on the Holt Road Interchange. This Ministry of Transportation project is critical to refurbishment; and

• A project office with contractor facilities including parking, change rooms, lunchrooms and improved security access to the station are being constructed.

Refurbishment is a substantial investment, but one that will serve the station, the community and the Province well over the next 30 years.

New Darlington Maintenance Facility

MODERATING ENERGY PRICESOPG is the only electricity generator in Ontario whose rates are set by the Ontario Energy Board (OEB) in an open, public

process. OPG’s lower rates help moderate overall electricity rates in Ontario. OPG’s studies have shown that refurbish-

ment is a good investment, but costs must first be approved by the OEB to be included in our rates.

Installation of municipal water and sewer services

WINTER 2014

Design, Print, Distribution: OPG Business Infrastructure Services© Ontario Power Generation Inc. 2014How to reach us: ONTARIO POWER GENERATION

Our new mailing address: Darlington Refurbishment1855 Energy Drive, Courtice, Ontario L1E 0E7Toll-free: 1-866-487-4600Website: www.opg.com/darlingtonrefurbEmail: darlingtonrefurb@opg.com

DARLINGTON REFURBISHMENT NEWSLETTER WINTER 2014

Keeping you informedIn the recently revised provincial Long-Term Energy Plan, the Government of Ontario stated that, due to lower forecast demand growth, the construction of two new nuclear units at OPG’s Darlington site will be deferred. While recognizing decisions on timing and logistics are not OPG’s to make, should new build go forward one day, OPG will be ready. We hold and will maintain the licence to prepare the site and we have an approved environmental assessment.

This makes nuclear refurbishment more important than ever, not just for OPG but for all of Ontario.

As always, we strive to inform the community and encourage your involvement in our projects every step of the way.

• On Nov. 15, 2013, Gary Rose, Director Refurbishment Planning & Control for Nuclear Projects, delivered an update on the refurbishment project to the Durham Nuclear Health Committee.

• On Nov. 29, 2013, Phil Reinert, Vice President, Supply Services, OPG Projects, provided a presentation on OPG’s contract and procurement strategies to the Durham Region Nuclear Supply Chain Roundtable.

• On Nov. 21, 2013, Chuck Lamers, Senior Communications Advisor, OPG Corporate Relations and Communications, provided a refurbishment project update in Alderville to members of the Williams Treaty First Nations.

• On Jan. 13 2014, Dietmar Reiner, Senior Vice President for Darlington Refurbishment, provided the OPG annual update on Darlington refurbishment to the Clarington Council. This televised event provided an opportunity for all councillors to ask questions directly to OPG, in an open and public forum.

• On Jan. 21, 2014, at a joint meeting of the Pickering and Darlington Community Advisory Committees, committee members participated in a guided tour of the nearly complete mock-up training facility at the DEC.

Look at our project web site. We have videos and other materials to help answer your questions. If you have any questions, would like a briefing or a presentation, send your request through our email address or call the toll-free line.

Members of the Pickering and the Darlington Community Advisory Committees on a tour of the DEC training facility.