NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 14. CAPITAL MANAGEMENT The Company’s objectives with respect to its capital structure are to maintain effective access to capital on a long-term basis at reasonable  rates, and to deliver appropriate financial returns. In order to ensure ongoing effective access to capital, the Company targets to maintain an  “A” category long-term credit rating.  The Company considers its capital structure to consist of shareholder’s equity, preferred shares, long-term debt, and cash and cash equivalents.  At December 31, 2013 and 2012, the Company’s capital structure was as follows: December 31 (millions of Canadian dollars) 2013 2012 Long-term debt payable within one year  756 600 Less: cash and cash equivalents  565 195 191 405 Long-term debt  8,301 7,879 Preferred shares  323 323 Common shares  3,314 3,314 Retained earnings  3,787 3,202 7,101 6,516 Total capital 15,916 15,123 The Company has customary covenants typically associated with long-term debt. Among other things, Hydro One’s long-term debt and credit  facility covenants limit the permissible debt to 75% of the Company’s total capitalization, limit the ability to sell assets and impose a negative  pledge provision, subject to customary exceptions. At December 31, 2013 and 2012, Hydro One was in compliance with all of these  covenants and limitations. Hydro One has a defined benefit pension plan, a supplementary pension plan, and post-retirement and post-employment benefit plans. The defined benefit pension plan (Pension Plan) is contributory and covers all regular employees of Hydro One and its subsidiaries, except  Hydro One Brampton Networks. Employees of Hydro One Brampton Networks participate in the OMERS plan, a multiemployer public sector  pension fund. The supplementary pension plan provides members of the Pension Plan with benefits that would have been earned and payable  under the Pension Plan but for the limitations imposed by the  Income Tax Act  (Canada). The supplementary pension plan obligation is included  with other post-retirement and post-employment benefit obligations on the Consolidated Balance Sheets. Hydro One contributions to the OMERS plan for the year ended December 31, 2013 were $2 million (2012 – $2 million). Company  contributions payable at December 31, 2013 and included in accrued liabilities on the Consolidated Balance Sheets were $0.2 million (2012 – $0.2 million). Hydro One contributions do not represent more than 5% of total contributions to the OMERS plan, as indicated in  OMERS’s most recently available annual report for the year ended December 31, 2012. 15. PENSION AND POST-RETIREMENT AND POST-EMPLOYMENT BENEFITS The OMERS Plan HYDRO ONE ANNUAL REPORT 2013 78