HomeMy WebLinkAboutCAO 06-26
Report to
Council
Report Number: CAO 06-26
Date: May 25, 2026
From: Marisa Carpino
Chief Administrative Officer
Subject:
Municipal Infrastructure & Servicing Agreement between the City of Pickering and Ontario
Power Generation
File: A-1440
Recommendation:
1. That Report CAO 06-26 regarding the Municipal Infrastructure & Servicing Agreement
between the City of Pickering and the Ontario Power Generation be received;
2. That the Mayor and City Clerk be authorized to execute the Municipal Infrastructure &
Servicing Agreement with Ontario Power Generation, set out in Attachment 1, subject to
revisions that may be required by the Chief Administrative Officer and the Director,
Corporate Services & City Solicitor; and,
3. That the appropriate City of Pickering officials be authorized to take the actions necessary
to implement the recommendations in this report.
1.0 Executive Summary:
Ontario Power Generation (OPG) has been a significant presence in the City of Pickering for
more than five decades through the Pickering Nuclear Generating Station (PNGS). Operating
since 1971, PNGS uses CANDU reactors to produce nearly emissions‑free power that
supplies approximately 14 per cent of Ontario’s electricity demand.
On November 26, 2025, the Ontario government approved OPG’s plan to refurbish four
CANDU nuclear reactors (units 5-8) at the PNGS which will extend the facility’s operations to
deliver affordable, reliable and clean power for up to 38 years.
As OPG continues to operate and plan for future activities at its Pickering site, a
comprehensive Municipal Infrastructure & Servicing Agreement (MISA) has been negotiated
between OPG and the City to formalize responsibilities, contributions, and coordination. The
CAO 06-26 May 25, 2026
Page 2
Agreement reflects the outcomes of negotiations between City staff and OPG representatives
and provides a framework for the following financial commitments and arrangements:
a) Financial Contribution Toward Fire Hall #5: OPG has confirmed a financial
contribution of up to $10 million to the City of Pickering toward the City’s design and
construction of Fire Hall #5, to be located at the southeast corner of Bayly St. and
Sandy Beach Rd.
b) Financial Contribution Toward the Acquisition of 591 Liverpool Road: OPG has
confirmed a financial contribution of up to $10 million to the City of Pickering toward the
City’s acquisition of the property municipally known as 591 Liverpool Road.
c) Sandy Beach Road Rehabilitation and Montgomery Park Road Reconstruction
Projects: OPG has entered into a Road Servicing Agreement with the City of Pickering
such that OPG is performing rehabilitation work on Sandy Beach Road and the
reconstruction of Montgomery Park Road, at a cost of approximately $16 million to
support the PNGS B Refurbishment Project, Pickering Residents and community.
d) PNGS Property Tax Payments During the Refurbishment Period: This agreement
includes clauses whereby OPG will keep the City whole from a property tax payment
perspective during the refurbishment period from 2027 up to and including 2031 with an
annual indexing clause based on the annual Pickering budget levy increase. Staff are
proposing that the agreement end in 2031, as this is the year that the first unit (Unit 5)
and deep-water intake system at the facility are expected to be completed. By adopting
this strategy, the City has balanced the benefit of keeping property tax payments
(revenues) stable during the refurbishment period from 2027 up to and including 2031.
For 2032 and beyond, if a further agreement is not reached, the property tax liability will
be based on the current established business practice of MPAC’s current value
assessment multiplied by the applicable property tax rate.
e) Pickering Community Fund: OPG will continue to support not-for-profit and
community organizations with donations, sponsorships, awards and scholarships
through its community investment program, the Power for Change Project, throughout
the term of this Agreement.
f) Community Engagement & Communications during the PNGS B Refurbishment
Project: OPG will provide, in a timely and transparent manner, accurate information to
stakeholders and the public, including the local business community, in the vicinity of
OPG’s PNGS facility, regarding PNGS events, activities, operations and projects,
including the PNGS B Refurbishment Project.
The proposed Agreement establishes a clear framework to address municipal infrastructure,
servicing, and related financial contributions arising from OPG’s ongoing operations and future
plans in Pickering. Approval of the MISA will provide certainty to both parties, protect the
City’s financial and operational interests, and support a collaborative long-term relationship
with one of Pickering’s largest employers and strategic partners.
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2.0 Relationship to the Pickering Strategic Plan:
The recommendations in this report respond to the Pickering Strategic Plan Priority of [pick
one or more of the following: Champion Economic Leadership & Innovation; Advocate for an
Inclusive, Welcoming, Safe & Healthy Community; Advance Innovation & Responsible
Planning to Support a Connected, Well-Serviced Community; Lead & Advocate for
Environmental Stewardship, Innovation & Resiliency; Strengthen Existing & Build New
Partnerships; Foster an Engaged & Informed Community.
3.0 Financial Implications:
A key component of the MISA is the establishment of financial contributions by OPG toward
municipal infrastructure and services that support OPG’s ongoing operations in the City of
Pickering.
a) Fire Hall #5: OPG confirmed a financial contribution equal to 68% of the expenses for
the design and construction of Fire Hall #5, up to a maximum of $10 million.
Contributions may be made in instalments or aligned with defined project milestones,
consistent with the City’s capital planning and approval processes. Payments will start
January 2027. Please note: the City’s estimated cost for the design and construction of
Fire Hall #5 is $15 million.
b) 591 Liverpool Road: OPG confirmed a financial contribution of up to $10 million that
will be advanced in accordance with the conditions set out in a separate Agreement of
Purchase and Sale and the associated Licence Agreement. This financial contribution
will be conditional upon the completion of the City’s purchase of 591 Liverpool Road
from the Pickering Harbour Company (PHC) and its transfer to OPG. Thereafter, a
Licence agreement between the City and OPG that would permit the use of 591
Liverpool Road for public City purposes (boat storage and public parking) at a nominal
cost.
c) Sandy Beach Road Rehabilitation and Montgomery Park Road Reconstruction
Projects: As per the Road Servicing Agreement entered into with the City of Pickering,
OPG committed to rehabilitate Sandy Beach Road and reconstruct Montgomery Park
Road to support the PNGS B Refurbishment Project, Pickering residents and the
community – resulting in a financial contribution of approximately $16 million.
OPG agreed to undertake and fund the design, approvals and reconstruction of
Montgomery Park Road in order to assure a completion date by the end of 2026. This
work, performed by OPG at their cost of approximately $8.17 million, removes the
Montgomery Park Road reconstruction project entirely from the City’s forecasted capital
program.
In order to improve Sandy Beach Road to a standard suitable to support the increased
traffic by the end of 2026, the City agreed to allow OPG undertake and fund the design,
approvals and construction to provide a rehabilitated Sandy Beach Road as a rural
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cross section with sidewalk provisions for pedestrian safety. This work, performed by
OPG at their cost of approximately $7.85 million, defers the City’s Sandy Beach Road
reconstruction and urbanization project estimated at $12 million by about 10 years (to
2035), which will increase the City’s future costs to $20.45 million (2035$) due to
indexing. This results in approximately $8.45 million in additional City costs.
In summary, OPG’s financial contribution advances the rehabilitation of Sandy Beach
Road and the reconstruction of Montgomery Park Road in 2026 for the benefit of PNGS,
Pickering residents and businesses, and the community. However, the City’s Sandy
Beach Road reconstruction and urbanization project will be delayed for 10 years,
resulting in an increased project cost due to indexing. As a result, this arrangement is
relatively cost neutral with a net cost to the City of approximately $280,000.
d) PNGS Municipal Tax Assessment: The MISA agreement includes a section whereby
the City will receive its annual property tax payments from 2027 up to and including
2031 with an indexing factor based on the City’s annual levy increase. The base year
for the agreement is the 2026 property tax payment for this site, which are the City
Share of $1,052,754 and the Educational Share of $1,658,436 for a total of $2,711,190.
If the City’s 2027 budget levy increase is 2.5%, the City would receive a total payment
of $2,778,970. OPG and the City will conduct a thorough inventory of the site from an
assessment perspective to ensure that every building and structure is reflected in the
Municipal Property Assessment Corporation’s (MPAC) records. Under this agreement,
there is no potential loss of property taxation revenues during the first five years of the
construction period.
e) Pickering Community Fund: OPG confirmed its financial commitment to continue to
offer the community investment program, through the Power for Change Project,
throughout the term of this agreement. Ontario Power Generation's (OPG) Power for
Change Project offers different grant, awards, and scholarship programs to give back to
the communities who do so much. This is a continuation of an existing community
investment program and does not represent a new/additional financial contribution by
OPG.
f) Community Engagement & Consultation: In recognition that the PNGS B
Refurbishment Project will result in increased on-site activities at PNGS and traffic to
and from the facility for the duration of the project, OPG confirmed its commitment to
provide, in a timely and transparent manner, accurate information to stakeholders and
the public, including the local business community, in the vicinity of OPG’s PNGS
facility, regarding PNGS events, activities, operations and projects, including the PNGS
B Refurbishment Project.
These contributions represent a significant financial commitment by OPG and support the
City’s broader objectives related to strategic infrastructure planning.
Approval of the MISA will result in direct and indirect financial benefits to the City of Pickering
through confirmed and anticipated contributions by OPG. Overall, the Agreement strengthens
the City’s financial position by ensuring that major infrastructure costs associated with OPG
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are addressed through a negotiated and transparent framework, thereby reducing potential
financial impacts on City taxpayers.
4.0 Discussion:
4.1 Ontario Power Generation
Pickering is home to one of the largest nuclear generating facilities in the world, the Pickering
Nuclear Generating Station (PNGS), operated by OPG. PNGS has been operating in Pickering
for over 50 years and consists of eight nuclear units, with four currently in service. The station
supplies approximately 14 per cent of Ontario’s electricity demand and produces nearly
emissions‑free power.
OPG’s Pickering operations support approximately 4,500 employees and play a critical role in
the Regional and Provincial economy. As Ontario’s other nuclear stations undergo
refurbishment, OPG has sought regulatory approval to continue operating certain Pickering
units through to 2026, with longer‑term planning underway for potential refurbishment of Units
5 to 8, subject to regulatory approvals.
In November 2025, OPG publicly announced its intent to pursue the potential refurbishment of
the Pickering Nuclear Generating Station’s Units 5 to 8, subject to regulatory approvals. This
planning follows OPG’s request to the Canadian Nuclear Safety Commission (CNSC) to
continue operating certain Pickering units through to 2026, while longer‑term decisions
regarding refurbishment are considered.
OPG has indicated that refurbishment of the Pickering station would enable the facility to
continue producing safe, reliable, and nearly emissions‑free electricity for Ontario for several
additional decades. In fact, the project will secure 2,100 megawatts of low-carbon, reliable
electricity for another 30-plus years to help meet Ontario’s forecasted increase in energy
demand and support its economic growth.
The potential refurbishment of the Pickering station represents a significant long‑term
investment in the community and region. The project is expected to create approximately
30,000 jobs during refurbishment phase of Pickering Units 5–8 (beginning in early 2027 and
extending into the mid‑2030s), while sustaining 6,700 jobs throughout the station’s operation.
OPG’s refurbishment will support the continuation of highly skilled employment, maintain
Pickering’s role as a critical contributor to Ontario’s electricity system, and generate substantial
economic activity across Durham Region and the province. These include a combination of
on‑site trades, engineers, project management, and supply‑chain employment across Ontario,
with peak workforce levels occurring during major construction and component replacement
activities.
With a final budget of $26.8 billion, more than 90 per cent of the project cost will be spent in
Canada to support local businesses and deliver economic benefits across the Province.
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4.2 Municipal Infrastructure & Servicing Agreement (MISA):
Given the scale and duration of OPG’s presence, there is a clear need for a MISA to address
municipal support and financial arrangements between OPG and the City. The MISA also
recognizes the social licence with the City of Pickering as a supportive host community of the
PNGS.
The MISA has been developed following a series of meetings and negotiations between City
staff and representatives of OPG over the past year. The Agreement is intended to provide a
comprehensive framework that governs:
a) Municipal infrastructure and servicing considerations related to OPG’s operations and
lands within the City;
b) Financial contributions by OPG toward municipal infrastructure and facilities impacted
by or associated with its operations; and,
c) Processes for ongoing communication and collaboration between OPG and the City &
Stakeholders.
The Agreement reflects the outcomes of discussions held between City staff and OPG
representatives through late 2025 and early 2026, with the shared objective of bringing a
finalized agreement forward for Council consideration within the second quarter of 2026.
4.3 Financial Contributions in the MISA
The Agreement reflects the outcomes of negotiations between City staff and OPG
representatives and provides a framework for the following financial commitments and
arrangements:
a) Financial Contribution Toward Fire Hall #5: OPG has confirmed a financial
contribution of up to $10 million to the City toward the City’s design and construction of
Fire Hall #5, located at the southeast corner of Sandy Beach Road and Bayly Street.
b) Financial Contribution Toward the Acquisition of 591 Liverpool Road: OPG has
confirmed a financial contribution of up to $10 million to the City toward the City’s
acquisition of the property municipally known as 591 Liverpool Road. This financial
contribution will be conditional upon the completion of the City’s purchase of 591
Liverpool Road from the Pickering Harbour Company (PHC) and its transfer to OPG.
Thereafter, a Licence agreement between the City and OPG that would permit the use
of 591 Liverpool Road for public City purposes.
This contribution is conditional upon:
i. the City’s acquisition of the total PHC land holdings which includes 591 Liverpool
Road;
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ii. the transfer of 591 Liverpool Road from the City to OPG through a separate
Agreement of Purchase and Sale (APS) subject to a Licence Agreement enabling
Pickering’s ongoing use and occupation of 591 Liverpool Road, at nominal cost.
c) Sandy Beach Road Rehabilitation and Montgomery Park Road Reconstruction
Projects: OPG has entered into a Road Servicing Agreement with the City of Pickering
such that OPG is performing rehabilitation work on Sandy Beach Road and the
reconstruction of Montgomery Park Road to support the PNGS B Refurbishment
Project, Pickering residents and local businesses, and the community.
d) PNGS Property Tax Payments During the Refurbishment Period: The MISA
agreement sub-section 3.4 relates to the property tax agreement. The goal of staff as it
relates to property tax payments was to keep the property tax payments whole during
the period of time the facility is not operating during the refurbishment. Absent an
agreement, there is a risk that MPAC applies a much lower assessment value during
the refurbishment construction phase, which would significantly reduce the property tax
payments. In other words, an argument could be made that during refurbishment, the
facility could be valued as vacant land or subject to a high obsolescence factor due to
the fact the facility is not producing and or generating any power and therefore, no
revenues. Under the agreement, if MPAC lowers the assessment value for the facility,
that results in lower property taxes (for the City & Region), OPG would then make up
the difference (by making an additional top-up payment) so that there is no loss in
property tax revenues. In addition, there would be an indexing of the base amount
every year based on Pickering’s annual budget levy increase.
The first step in establishing the base amount for the agreement is to use the 2026
returned roll assessment values for the facility. In addition, the City and MPAC have
committed to undertake an assessment audit of the entire facility (late spring or early
summer of this year) so that the 2026 assessment records are accurate and reflect the
true property tax liability for this property.
It should be noted that while this agreement protects the City from any property tax
losses and includes an indexing factor, it also includes a clause that if MPAC returns a
higher assessment for the facility during the duration of the agreement, that results in
higher property tax payments then permitted under the agreement, the City would
refund the difference (Sub-section 3.4 (d)).
As the portions of the facility’s refurbishment are completed and occupied, it is more
likely that MPAC will assess these portions of the facility. This timing permits the
stabilization of property tax payments while the facility is likely not operational and also
allows the City to capture value of the newly refurbished portions of the facility as they
are completed in 2032 and onward.
e) Pickering Community Fund: OPG will continue to support not-for-profit and
community organizations through donations, sponsorships, awards and scholarships its
community investment program, the Power for Change Project, throughout the term of
this Agreement.
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f) Community Engagement & Communications during the PNGS B Refurbishment
Project: OPG will provide, in a timely and transparent manner, accurate information to
stakeholders and the public, including the local business community, in the vicinity of
OPG’s PNGS facility, regarding PNGS events, activities, operations and projects,
including the PNGS B Refurbishment Project.
This includes regular outreach on OPG project updates and the following:
i. direct, ongoing communication between OPG and City staff to maintain ongoing,
proactive, and responsive two-way communications;
ii. OPG’s Public Information Centre will be staffed daily (Monday to Friday,
excluding holidays) by staff who can respond to questions from the public, local
residents and businesses, regarding OPG’s operations, projects and the PNGS B
Refurbishment Project;
iii. public Telephone Line (905-832-7272) and web-based contact at opg.com; and,
iv. 24/7 on-call staff for media and public inquires.
It is important to note that OPG's financial contributions to the City for Fire Hall #5, the Sandy
Beach Road and Montgomery Park Road Projects, PNGS Municipal Tax Assessment, as set
out in the MISA, remain intact and unchanged should the City be unsuccessful in purchasing
the PHC land holdings. The financial contribution related to 591 Liverpool Road represents the
Provincial contribution toward the City’s purchase of the larger Frenchman’s Bay landholding.
This serves the City’s interests by reducing the cost of acquiring the Bay. It also serves the
interests of OPG because 591 Liverpool Road lies within the nuclear exclusion zone
surrounding PNGS. By taking title to 591 Liverpool Road, OPG ends the possibility of any
private sector uses on 591 Liverpool Road that would be inconsistent with the ongoing
refurbishment and operation of PNGS.
4.4 Benefits of the MISA
The proposed MISA provides several key benefits to the City:
a) Financial Protection: By formalizing OPG’s financial contributions toward municipal
infrastructure, the Agreement helps ensure that City taxpayers are not
disproportionately impacted by costs associated with OPG’s operations.
b) Strategic Alignment: The Agreement supports the City’s broader objectives related to
growth management, infrastructure planning, and long‑term financial sustainability.
c) Strengthened Partnership: Establishing a formal, Council‑approved agreement
reinforces the collaborative relationship between the City and OPG as a major employer
and stakeholder in Pickering.
4.5 Conclusion
OPG has been, and will continue to be, a significant presence in the City of Pickering. The
proposed MISA provides a necessary and appropriate framework to manage the municipal
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impacts of OPG’s operations while supporting a collaborative, transparent, and financially
responsible relationship.
Attachment:
1. Municipal Infrastructure & Servicing Agreement between the City of Pickering and the
Ontario Power Generation
Prepared By: Marisa Carpino, Chief Administrative Officer
Approved/Endorsed By: Fiaz Jadoon, Director, Economic Development & Strategic Projects
Approved/Endorsed By: Paul Bigioni, Director, Corporate Services & City Solicitor
Approved/Endorsed By: Stan Karwowski, MBA, CPA, CMA, Director, Finance
MC:sn
Recommended for the consideration of Pickering City Council By:
Marisa Carpino, M.A.
Chief Administrative Officer
Draft: May 20, 2026
MUNICIPAL INFRASTRUCTURE AND SERVICING AGREEMENT
This Municipal Infrastructure and Servicing Agreement is dated , 2026,
between
ONTARIO POWER GENERATION INC., a
corporation existing under the laws of Ontario ("OPG"),
and
THE CORPORATION OF THE CITY OF
PICKERING, a corporation existing under the laws of Ontario ("Pickering").
RECITALS
A.Whereas OPG is the owner of the Pickering Nuclear Generating Station (“PNGS”), an eight-
unit nuclear generating station, located in the City of Pickering, Ontario;
B.Whereas OPG has carried out construction, operation, maintenance, repair and refurbishmentof reactor units and associated infrastructure at the PNGS, and may do so now and/or in thefuture, including refurbishment of the four (4) nuclear generating units at PNGS designated
as Pickering B, and ultimately will carry out the decommissioning of reactor units at PNGS,
along with other related activities (collectively, the “PNGS Activity”);
C.Whereas Pickering is recognized as the host municipality for PNGS;
D.Whereas Pickering and OPG acknowledge that the PNGS Activity has brought, and is expected
to bring, continued benefits to Pickering and to the residents of the City of Pickering (the"Pickering Residents");
E.Whereas OPG acknowledges that local community support is desirable for the success ofthe refurbishment of the four (4) nuclear generating units at PNGS designated asPickering B and more generally for the continued success of the PNGS Activity;
F.Whereas Pickering and OPG wish to ensure that the refurbishment of the four (4) nucleargenerating units at PNGS designated as Pickering B specifically, and the PNGS Activitymore generally, is carried out in the public interest and in the interest of the general safetyand welfare of the Pickering Residents; and
G.Whereas OPG wishes to obtain Pickering’s continued support, as the host community forthe PNGS and the PNGS Activity.
THEREFORE IN CONSIDERATION OF the covenants hereinafter contained and for value
mutually given and received, the receipt and sufficiency of which is hereby acknowledged, the
Parties agree as follows:
Attachment 1 - Report CAO 06-26
ARTICLE 1- INTENT AND INTERPRETATION
1.1 Definitions
In this Agreement, the following terms have the respective meanings set out below:
(a) Agreement means this municipal infrastructure and servicing agreement, including any
recitals and schedules, as amended or restated from time to time by an Amendment.
(b) Amendment means a written amendment agreement signed by the Parties which makes any
change, amendment or restatement to this Agreement and Amend, Amends and Amended
shall have similar meanings.
(c) Applicable Laws, in respect of any person, property, transaction or event, means all
applicable laws, statutes, regulations, treaties, judgements and decrees applicable to that
person, property, transaction or event at the applicable time and, whether or not having the
force of law, all applicable permits, licences, consents and approvals, requirements,
requests, directives, rules, guidelines, standards, specifications, codes, instructions,
circulars, manuals, and policies of any relevant technical organization or any Governmental
Authority having authority over that person, property, transaction or event at the applicable
time.
(d) Arbitrator means a single arbitrator appointed with respect to a Dispute pursuant to
Section 5.2 and must be a retired judge of the Supreme Court of Canada, the Superior Court of Justice (Ontario) or of any court of a Canadian province having jurisdiction comparable
to, or higher than that of such court.
(e) Business Day means any day other than a Saturday, Sunday, New Year's Day, Family Day,
Good Friday, Easter Monday, Victoria Day, Canada Day. Civic Holiday, Labour Day,
Thanksgiving Day, Christmas Day and Boxing Day or any other public holiday declared by
the federal or provincial government. Each Business Day will end at 5:00 p.m. on that day.
(f) Dispute has the meaning given to this term in Section 5.1.
(g) Effective Date has the meaning given to this term in Section 2.1(a).
(h) Fire Hall Contribution has the meaning given to this term in Section 3.1(a).
(i) Governmental Authority means any federal, provincial, territorial, regional, municipal or local governmental authority, quasi-governmental authority, court, government or self-
regulatory organization, commission, board, tribunal, organization, or any regulatory,
administrative or other agency, or any political or other subdivision, department, or branch of any of the foregoing, having legal jurisdiction in any way over OPG or Pickering, any
aspect of the performance of this Agreement or the carrying out of the PNGS Activity, in
each case to the extent it has or performs legislative, judicial, regulatory, administrative or
other functions within its jurisdiction, and including the Independent Electricity System Operator for Ontario and, for clarity, the Canadian Nuclear Safety Commission.
(j) Harbour Company Land has the meaning given to this term in Section 3.2(a).
(k) Harbour Company Land Purchase has the meaning given to this term in Section 3.2(b).
(l) Land License has the meaning given to this term in Section 3.2(d).
(m) MPAC has the meaning given to this term in Section 3.4(a).
(n) New Fire Hall has the meaning given to this term in Section 3.1(a).
(o) Notice means any notice, required or permitted to be given under this Agreement, and Notify has a similar meaning.
(p) Permitted Use has the meaning given to this term in Section 3.2(d).
(q) PILs has the meaning given to this term in Section 3.4(a).
(r) PNGS has the meaning given to this term in Recital A.
(s) PNGS Activity has the meaning given to this term in Recital B.
(t) PNGS B Refurb means OPG’s Pickering refurbishment project, which consists of the refurbishment of the four (4) nuclear generating units at PNGS designated as Pickering B,
including the site preparation for such refurbishment and the construction, refurbishment,
operation, decommissioning and abandonment and refurbishment of such units, and all administrative, ancillary and other buildings, structures, infrastructure and systems
necessary to refurbish, operate, maintain, repair, decommission and abandon such units in
accordance with Applicable Laws, applicable codes and standards and good utility
practices, including any combination of the following as determined by OPG:
(1) the nuclear island, balance of the plant and all other facilities;
(2) the buildings for or associated with the nuclear reactors, including the turbine
hall and used fuel bays;
(3) the water treatment plants, pump/screen facilities and forebays;
(4) the low and intermediate level radioactive waste storage facilities, used fuel dry
storage facilities, and internal maintenance areas;
(5) the irradiated fuel bay, new nuclear fuel storage areas, converted fuel storage
facilities, hazardous substance facilities, compressed gas storage facilities,
radiation support and decontamination facilities, the heavy water management
facilities (if applicable), the training centre and training simulator, and
security systems, fencing and signage facilities;
(6) the condenser cooling structures (i.e. lake water intake/discharge structures
and/or cooling towers);
(7) the support facilities (including administrative buildings, cafeterias, change
room facilities, records facilities, parking facilities, maintenance facilities and shops, laboratories, warehouses, contaminated and uncontaminated
laundry, lay down areas, inspection services and radiography facilities,
dentistry laboratories, first aid and medical facilities, health physic
laboratory and facilities, emergency response centres and monitoring
equipment and systems);
(8) the shoreline and underwater structures, including infill of an adjacent area, a
docking facility, underwater tunnels and pipes into Lake Ontario;
(9) the buildings and equipment necessary to extend the switchyard at the Pickering Nuclear Generation Site;
(10) the ancillary infrastructure facilities (including power systems, sanitary
sewers, chemical waste ponds, potable water systems or connections, storm
water systems, subsurface drainage management systems, roads and driveways into the PNGS, and a fence between the PNGS B Refurb site
and the remainder of the PNGS; and
(10) all other ancillary facilities (including chemical and oil storage facilities, vehicle fuel storage facilities, emergency backup diesel generators).
(u) PNGS B Refurb Period means the period of time from the Execution Date until the earlier of: (1) the date that OPG or the Government of Ontario publicly announces the PNGS B Refurb
has been completed; and (2) PNGS B Refurb Will Not Proceed.
(v) PNGS B Refurb Will Not Proceed means, as determined by OPG in its sole discretion, that
PNGS B Refurb will not be further advanced or constructed, or that there is no reasonable prospect thereof, and Notice of same is provided by OPG to Pickering or a bona.fide public
announcement is made of same by either OPG or the Government of Ontario.
(w) Parties means Pickering and OPG and Party means either Pickering or OPG, as the context requires.
(x) Permits, Licences and Approvals means all permissions, consents, approvals, certificates, permits,
licences, statutory agreements and authorizations required by Applicable Laws, and all consents and
agreements from any third parties (including any development permits, building permits, zoning
approvals, and any other planning or development permit which may be required by Applicable
Laws) needed, in each case for PNGS Activity.
1.2 Headings
The division of this Agreement into sections and the insertion of headings are for convenience of
reference only and are not to affect the construction or interpretation of this Agreement.
1.3 Expanded Definitions
Unless otherwise specified in this Agreement, words importing the singular include the plural and vice
versa and words importing gender include all genders. The term "'including" means "including without
limitation", and the terms "include", "includes" and "included" have similar meanings. Any reference in this Agreement to any other agreement, is deemed to include a reference to that other agreement, as
amended or restated from time to time.
1.4 Time of Day
Unless otherwise specified in this Agreement, references to time of day or date mean the local time or
date in Pickering, Ontario.
1.5 Business Days
If under this Agreement any payment or calculation is to be made on or as of a day which is not a
Business Day, then that payment or calculation is to be made on or as of the next day that is a Business
Day.
1.6 Governing Law
This Agreement will be construed and interpreted in accordance with the laws of Ontario and the laws of
Canada applicable in Ontario. Each of the Parties irrevocably submits to the non-exclusive jurisdiction
of the courts of Ontario.
1.7 Severability
If any term of this Agreement is or becomes illegal, invalid or unenforceable, the illegality, invalidity or
unenforceability of that term will not affect the legality, validity or enforceability of the remaining terms
of this Agreement and the Parties will, if necessary, Amend this Agreement to accomplish the intent of the Parties as originally set out in this Agreement to the maximum extent allowed by Applicable Laws.
1.8 Statutory and Technical References
Each reference to a statute in this Agreement is deemed to be a reference to that statute, and to the
regulations made under that statute, all as amended or re-enacted from time to time.
1.9 Entire Agreement
This Agreement constitutes the entire agreement between the Parties regarding the subject matter and,
except for any Amendment, supersedes all other agreements, negotiations, discussions, undertakings,
representations, warranties and understandings, whether written or verbal.
1.10 Currency
Amounts to be paid under this Agreement are to be paid in Canadian Dollars or, for greater certainty, the lawful currency of Canada.
ARTICLE 2-TERM AND TERMINATION
2.1 Effective Date (a) The effective date of this Agreement (the “Effective Date”) shall be the last of the following dates:
(1) the date upon which OPG executes this Agreement; and
(2) the date upon which Pickering executes this Agreement.
(b) Each Party shall notify the other Party and deliver to it a copy of this Agreement duly executed by the notifying Party when that Party has executed this Agreement.
2.2 Term and Termination (a) Notwithstanding anything to the contrary herein, the term of this Agreement will commence on the
Effective Date and will expire at midnight on December 31, 2036, unless terminated earlier in
accordance with this Agreement. (b) If a Party is in material breach of its obligations under this Agreement, the other Party may terminate
this Agreement upon giving the breaching Party at least thirty (30) days prior written notice including
the reasons for termination, unless the breaching Party cures such breach prior to the effective date of termination
ARTICLE 3- OPG’S CONTRIBUTIONS
3.1 Contribution to New Fire Hall
The total amount contributed by OPG to the City of Pickering under this Section 3.1 shall be considered full and final payment by OPG for, and shall be applied by Pickering to, the necessary relocation and
reconstruction of the aged Pickering Fire Hall #5 (built in 1969, concurrent with PNGS construction), located
at the area of Bayly St./Brock Rd./Sandy Beach Rd., which remains the closest and primary responding fire
hall for the geographical area south of Highway 401 to Lake Ontario and encompassing the Pickering Nuclear station (undergoing refurbishment), facilities and adjacent land.
As a longstanding partner with Pickering Fire Services, OPG believes the reconstructed fire hall will further
enhance local fire response and community safety in South Pickering, including for the refurbished PNGS.
By promoting greater fire safety and responsiveness through this payment, OPG continues to demonstrate
its commitment to the ongoing safety of OPG’s operations, employees and community.
(a) OPG shall pay Pickering an amount (the “Fire Hall Contribution”) equal to 68% of the out-of-
pocket costs expended by Pickering for the design and construction of a new fire hall on lands
owned by Pickering in the general vicinity of the Sandy Beach Road and Bayly Road intersection to serve the City of Pickering (the “New Fire Hall”), up to a maximum total aggregate Fire Hall
Contribution of $10,000,000. For greater certainty, the parties confirm that the Fire Hall
Contribution excludes any costs incurred to acquire the lands on which the New Fire Hall is to be
located or to extend municipal services to such lands.
(b) OPG acknowledges that Pickering has provided documentation demonstrating the community’s
need for a New Fire Hall 5, and OPG is of the opinion that the New Fire Hall will constitute a meaningful contribution towards OPG meeting the baseline fire and safety requirements set out in
OPG’s construction and operating licences issued, or to be issued, by the CNSC to OPG with
respect to PNGS B Refurb. Pickering shall provide OPG with copies of receipts for out-of-pocket
costs paid by Pickering for the New Fire Hall including sufficient details to confirm that such costs were incurred solely in respect of the design or construction of the New Fire Hall.
(c) OPG shall pay Pickering the Fire Hall Contribution set out herein by monthly instalments starting January, 2027, subject to Section 3.1(a). Each monthly instalment shall reimburse Pickering for
68% of the amount shown on copies of receipts provided by Pickering to OPG no later than the
15th day of the previous month for out-of-pocket costs incurred by Pickering for the New Fire
Hall, provided that no such payment shall be due and payable until January 1, 2027 at the earliest.
(d) No amount shall be payable by OPG to Pickering under this Section 3.1 in compensation for out-of-pocket costs paid by Pickering after the earlier of PNGS B Will Not Proceed and the
termination or expiry of this Agreement.
3.2 591 Liverpool Road
(a) Within a reasonable time after the Effective Date, OPG and Pickering will negotiate in good
faith a written agreement of purchase of sale, on terms and conditions satisfactory to the Parties,
acting reasonably, whereby Pickering will agree to sell to OPG, and OPG will agree to buy from
Pickering (the “Harbour Company Land Purchase”), a freehold interest in the land municipally
known as 591 Liverpool Road, Pickering (the “Harbour Company Land”)for a purchase price of up to $10,000,000 plus H.S.T. if applicable. This Agreement is not conditional upon the entry
into or completion of the Harbour Company Land Purchase.
(b) The Harbour Company Land Purchase will include the grant of a licence to Pickering to use and occupy the Harbour Company Land on terms acceptable to OPG and Pickering (the “License”).
(c) A Party’s failure to execute or to close the Harbour Company Land Purchase (which, for certainty, would include failure to grant the License which forms part of the Harbour Company Land
Purchase) for any reason whatsoever shall not be considered a breach or default of that Party’s
obligations under this Agreement.
3.3 Sandy Beach Road & Montgomery Park Road Resurfacings
Pickering acknowledges that OPG has entered into a Road Servicing Agreement with the City of
Pickering such that OPG is performing rehabilitation work on Sandy Beach Road and reconstruction of Montgomery Park Road to support the PNGS B Refurb, Pickering, the Pickering Residents and
community, at an approximate cost to OPG of approximately $16,000,000.
3.4 PNGS Municipal Tax Assessment
(a) The parties acknowledge and agree that:
(1) payments-in-lieu-of-realty-taxes (“PILs”) made by OPG to Pickering are made
in accordance with valuations determined by the Municipal Property Assessment Corporation (“MPAC”) pursuant to the statutory scheme (“Scheme”) set out in
the Assessment Act, R.S.O. 1990, c. A. 31 as amended (the “Act”). MPAC may
alter its valuations under the Scheme as a result of the PNGS B Refurb;
(2) notwithstanding Subsection 3.4(a)(1) above, Pickering has an interest in
stabilizing the amount of revenue it receives from the PILS during the first five
years of the PNGS B Refurb Period to avoid reduction in the City’s budgeted revenues with respect to the PNGS B Refurb Period as a result of any PILS re-
assessment by MPAC in accordance with the Scheme; and
(3) OPG has an interest in stabilizing the amount of PILS it must pay during the first five years of the PNGS B Refurb Period to avoid any increase to the amount
OPG has budgeted for payment thereof as a result of a PILS re-assessment by
MPAC in accordance with the Scheme.
(b) The amount of PILs payable by OPG in respect of the 2026 to 2031 taxation years will be subject to adjustment, on an annual basis in accordance with the Municipal Tax Levy including the
Education Levy under O. Reg. 400/98.
(c) If the amount of PILs payable by OPG in respect of the 2026 o 2031 taxation years is reduced by MPAC as a result of an MPAC re-assessment thereof, compared to the amount of PILs that would
have been payable by OPG in respect of the 2026 to 2031 taxation years at the rate determined by
MPAC that was in effect as of the Effective Date (as adjusted accordance with subsection 3.4(b)
above), OPG shall pay Pickering the difference between such amounts. OPG shall make such payment by instalments due in each case within 90 days after payment of PILs is due and payable
by OPG at the MPAC-assessed rate with respect to the 2026 to 2031 taxation years, and the amount
of each instalment shall reflect the difference between such MPAC-assessed rates for the subject period of time during the 2026 to 2031 taxation years.
(d) If the amount of PILs payable by OPG in respect of the 2026 to 2031 taxation years is increased
by MPAC as a result of an MPAC re-assessment thereof, compared to the amount of PILS that would have been payable by OPG in respect of the 2026 to 2031 taxation years at the rate
determined by MPAC that was in effect as of the Effective Date (as adjusted in accordance with
subsection 3.4(b) above), Pickering shall pay OPG the difference between such amounts. Pickering shall make such payment by instalments due in each case within 90 days after payment of PILS is
due and payable by OPG at the MPAC-assessed rate with respect to the 2026 to 2031 taxation
years, and the amount of each instalment shall reflect the difference between such MPAC-assessed
rates for the subject period of time during the 2026 to 2031 taxation years.
(e) Nothing in this Agreement shall be construed to affect any of the statutory rights of MPAC, OPG or Pickering pursuant to the Act.
(f) The existence and contents of this Agreement may not be referred to or used as evidence or in argument for the purpose of any current or future disposition of an appeal to the Assessment
Review Board pursuant to Section 40 of the Act.
3.5 Pickering Community Fund
OPG will continue its commitment to being a good corporate citizen and neighbour through its community investment program, the Power for Change Project, throughout the term of this Agreement.
OPG support for not-for-profit and community organizations through donations, sponsorships, awards
and scholarships will continue throughout the term of this Agreement.
3.6 Communications and Community Engagement
(a) OPG will continue its commitment to being a good corporate citizen and neighbour in accordance with
the following provisions of this Section 3.6.
(b) OPG recognizes the importance of early, ongoing and meaningful engagement with the PNGS’ host community and will use not less than reasonable efforts to maintain open and transparent communications with the Pickering community on OPG’s PNGS-related operations and projects,
including PNGS B Refurb, through a public information and disclosure program.
(c) As part of OPG’s public information and disclosure program, OPG will provide, in a timely and transparent manner, accurate information to stakeholders and the public, including the local business
community, in the vicinity of OPG’s PNGS facility, regarding PNGS events, activities, operations and
projects, including PNGS B Refurb.
(d) In carrying out this public information and disclosure program, OPG will ensure consistent standards
and procedures are followed for dissemination of information to the public in a number of ways based
on the audience, their interest and their preferred method of communication. Some of these methods will include, but will not be limited to:
(1) direct, ongoing communication between OPG and the City of Pickering - staff at the
City of Pickering will have direct access to OPG’s Senior Manager, Corporate
Relations & Projects to maintain ongoing, proactive and responsive two-way
communication;
(2) OPG’s Public Information Centre - staffed Monday-Friday (excluding statutory holidays) by a team who are available to answer questions from the public, local
neighbours and the local business community on OPG’s operations and projects,
including PNGS and PNGS B Refurb;
(3) a public telephone line (905-832-7272) and web-based contact form available on
opg.com; and
(4) 24/7 on-call staff for media and public inquiries. (e) In addition, as part of this public information and disclosure program, OPG will use not less than
reasonable efforts to ensure the community remains informed with OPG project updates through ongoing outreach, including but not limited to:
(1) Public website - opg.com; including a Pickering Refurbishment Project page and a
Community Page;
(2) Social media - Twitter/X, Facebook, Instagram and LinkedIn;
(3) Traditional and print media – including Neighbours Newsletter delivered to 250,000 homes and businesses with information about OPG’s operations and projects; and
(4) Community presentations and outreach initiatives, including to local businesses
through direct outreach as well as through the Ajax-Pickering Board of Trade.
ARTICLE 4 – HOST COMMUNITY SUPPORT
4.1 Municipal Approvals
Pickering agrees to give due consideration to providing OPG with all permits, licences and approvals properly applied for by OPG and within its jurisdiction to grant in order to permit and expedite
PNGS operations and PNGS B Refurb, and will expeditiously process applications it receives in this
regard provided that:
(a) OPG will furnish any such documentation normally required by Pickering to support the
approval being sought; and
(b) OPG will pay all normal costs associated with any such applications which are customarily
required by Pickering.
4.2 CNSC Licensing
Pickering will take not less than reasonable steps to support OPG in each licensing application hearing
conducted by the Canada Nuclear Safety Commission in connection with PNGS.
4.3 Host Community Support
In addition to the other consideration given by Pickering to OPG under this Agreement, Pickering agrees
to continue using reasonable efforts to cooperate with OPG as a supportive host community for PNGS.
4.4 Mutual Acknowledgement
OPG and Pickering acknowledge and agree that they have a shared understanding of the municipal
infrastructure and servicing needs related to PNGS operations and that these have been addressed to
their mutual satisfaction through this Agreement, through the agreement made by them for road
servicing dated July 11, 2025, and through the PNGS B Refurb.
ARTICLE 5 - DISPUTE RESOLUTION
5.1 Disputes Referred to Arbitration
The Parties will work co-operatively to resolve any dispute, disagreement, controversy, question or claim (including a claim for indemnification) (collectively, a "Dispute").
If either Party is of the opinion that a Dispute will not be resolved by the Parties co-operatively in a
timely fashion, it will refer any outstanding Dispute or other controversy between the Parties arising
in respect of this Agreement to arbitration under the Arbitration Act, 1991 (Ontario) by giving
Notice thereof to the other Party.
5.2 Notice of Arbitration and Appointment of Arbitrator
A Party that delivers the Notice referred to in Section 5.1 will include in its written Notice the
names of three individuals who are acceptable to it to serve as a sole Arbitrator for the subject
Dispute. Within ten days of the receipt of the Notice, the other Party will give written Notice that it accepts the appointment of one of the three named individuals or will name three other individuals
who are acceptable to it to serve as sole Arbitrator. If the Parties are unable to agree upon a sole
arbitrator within a further ten days, either Party may apply to the Superior Court of Justice to appoint an Arbitrator who will preside over resolution of the Dispute..
5.3 Powers of Arbitrator
The Arbitrator may determine all questions of law, fact and jurisdiction regarding the arbitration
(including questions as to whether the matter at issue is arbitrable) and all matters of procedure
relating to the arbitration. The Arbitrator may grant legal and equitable relief (including injunctive relief), award costs (including legal fees and the costs of the arbitration) and award interest. Without
limiting the generality of the foregoing or the Arbitrator's jurisdiction at law, the Arbitrator may:
(a) determine any question of good faith, dishonesty or fraud arising in the matter at issue;
(b) order either Party to furnish further details of that Party's case, in fact or in law;
(c) proceed in the arbitration notwithstanding the failure or refusal of either Party to comply
with this section or with the Arbitrator's orders or directions, or to attend any meeting or
hearing, but only after giving that Party written Notice that the Arbitrator intends to do so;
(d) receive and take into account written or oral evidence tendered by the Parties that the
Arbitrator determines is relevant, whether or not strictly admissible in law;
(e) make interlocutory determinations or interim orders or awards;
(f) hold meetings and hearings and make a decision (including a final decision) in the
Municipality of Clarington (or elsewhere with the concurrence of the Parties); and
(g) order the Party(ies) to provide to the Arbitrator, and to the opposing Party(ies) for inspection,
and to supply copies of, any documents or classes of documents in its possession or control
that the Arbitrator determines to be relevant.
5.4 Arbitration Procedure
The arbitration will take place in Toronto, Ontario at such place and time as the Arbitrator may fix.
The arbitration will be conducted in English. Within 10 Business Days of the appointment of the
Arbitrator, the Parties will either agree on the procedure to be followed for the arbitration or the
Arbitrator will determine the appropriate procedure, in accordance with the principles of natural
justice, to be followed. The Parties will keep confidential and not disclose to any other person, the arbitration and all matters arising directly or indirectly from the matter(s) at issue (including all
documents exchanged. the evidence and the award), except as set out in this Section 13.4. A Party
may disclose any such information to the extent required:
(a) to obtain assistance from persons to conduct the matters under arbitration;
(b) by law or securities exchange rules; or
(c) by a disclosure requirement with a shareholder, lender or potential lender (including any
advisor to any such recipient person), so long as such person is informed of the confidential
nature of such information and such person agrees to be bound, subject to law, by such
confidentiality obligation.
5.5 Arbitrator's Decision
No later than 20 Business Days after hearing the representations and evidence of the Parties, the
Arbitrator will make the Arbitrator's determination in writing, with reasons, and deliver one copy to
each of the Parties. The Arbitrator may only interpret and apply the terms of this Agreement and, except as expressly permitted in this section, may not change this Agreement in any manner. The
decision of the Arbitrator will be final and binding upon the Parties regarding all matters relating to
the arbitration, the conduct of the Parties during the proceedings and the final determination of the
matter at issue.
5.6 No Appeal and Enforcement
Subject to Section 44 of the Arbitration Act, 1991 (Ontario), the Parties may not appeal from the
determination of the Arbitrator to any court. The Parties may enter any judgment upon any award
rendered by the Arbitrator in any court having jurisdiction.
5.7 Costs of Arbitration
Subject to the terms of this Agreement, the Parties will bear the costs of any arbitration under this section in the manner specified by the Arbitrator. Subject to the terms of this Agreement, if the
Arbitrator does not specify the costs, each Party will bear its own costs and will share the costs of
the Arbitrator equally.
ARTICLE 6 - GENERAL
6.1 Assignment and Benefit
This Agreement enures to the benefit of and binds the Parties and their respective successors and
permitted assigns. Neither Party may assign this Agreement without the prior written consent of the
other Party, such consent not to be unreasonably withheld.
6.2 Amendments
Except as expressly provided in this Agreement no amendment, restatement or termination of this
Agreement in whole or in part is binding unless it is in writing and signed by each Party.
6.3 Notice
Except as otherwise provided in this Agreement, every Notice required or permitted under this
Agreement must be in writing and may be delivered in person, by courier or by fax to the applicable Party, as follows:
If to OPG: If to Pickering:
Ontario Power Generation Inc.
1908 Colonel Sam Drive Oshawa, Ontario L1H 8W8
Attention: David Rogers
Email: David.Rogers@OPG.com
Attention: Email:
or to any other address, fax number or individual that a Party designates by Notice. Any Notice
under this Agreement, if delivered personally or by courier will be deemed to have been given when actually received, if delivered by fax before 3:00 p.m. on a Business Day will be deemed to have
been delivered on that Business Day and if delivered by fax after 3:00 p.m. on a Business Day or on
a day which is not a Business Day will be deemed to be delivered on the next Business Day.
6.4 Waivers
No waiver of any term or condition of this Agreement is binding unless it is in writing and signed
by all the Parties entitled to grant the waiver. No failure to exercise, and no delay in exercising, any
right or remedy, under this Agreement will be deemed a waiver of that right or remedy. No waiver of any breach of any term of this Agreement will be deemed to be a waiver of any subsequent
breach of that term.
6.5 Entire Agreement
This Agreement constitutes the entire agreement between the Parties regarding the subject matter
and, except for any Amendment, supersedes all other agreements, negotiations, discussions,
undertakings, representations, warranties and understandings, whether written or oral.
6.6 Execution of Contract
This Agreement may be executed in counterparts, each of which when executed shall be deemed to
be an original, but all of which when taken together shall constitute one and the same agreement.
Signatures by facsimile shall be as effective as original signatures to this Agreement. [The remainder of this page is intentionally blank.]
IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the date hereof.
ONTARIO POWER GENERATION INC. THE CORPORATION OF THE CITY OF PICKERING
Name: Name:
Title: Title: I have authority to bind the Corporation. I have authority to bind the Corporation. [Signature page of Municipal Infrastructure and Servicing Agreement]