MANAGEMENT’S DISCUSSION AND ANALYSIS Satisfying our customers Employee engagement  Maintaining a commercial culture that increases value for our shareholder Creating an injury-free workplace and maintaining public safety REGULATION HYDRO ONE ANNUAL REPORT 2013 19 The OEB approved the use of US GAAP for rate setting and regulatory accounting and reporting by Hydro One Networks’ Transmission  and Distribution Businesses, as well as by Hydro One Remote Communities, beginning with the year 2012. Hydro One Brampton Networks  currently uses Canadian GAAP for its distribution rate-setting purposes. Our electricity transmission and distribution businesses are licensed and regulated by the OEB. Our transmission revenues primarily include  our transmission tariff, which is based on the province-wide Uniform Transmission Rates (UTRs) approved by the OEB for all transmitters across  Ontario. Our distribution revenues primarily include our distribution tariff, which is also based on OEB-approved rates, and the recovery of the  cost of purchased power used by our customers. Transmission and distribution tariff rates are set based on an approved revenue requirement  that provides for cost recovery and a return on deemed common equity. In addition, the OEB approves rate riders to allow for the recovery or  disposition of specific regulatory accounts over specified timeframes. The safety of our employees is paramount. In 2013, we used medical attentions, defined as injuries that require treatment by a medical  practitioner (beyond first aid), as the performance measure for this strategic objective. The medical attentions measure reflects incidents that are  reported to the Workplace Safety Insurance Board and is calculated as the number of attentions per 200,000 hours worked. In 2013, we set  a target of no higher than 1.9 attentions per 200,000 hours worked. We did not meet this target. Achievement of strong financial performance is measured by a performance measure of targeted level of net income after tax. Our 2013 target  was $702 million net income after tax, and we exceeded our target.  We continue to focus efforts on increasing employee engagement throughout the Company. An engaged workforce is one in which employees  embrace the corporate values of safety, stewardship, excellence and innovation. The employee engagement survey is administered by an  independent third party expert. Our goal is to improve the grand mean score year-over-year. The target of improving the grand mean score to  4.06 (out of 5) in 2013 was not met.  Customer satisfaction measures the degree to which our transmission and distribution customers are satisfied with the service they receive  from our company. Customer satisfaction is based on the results of customer surveys conducted on our behalf by independent third parties. In  2013, for transmission customers we targeted a customer satisfaction rate of 82%. The survey was given to three major groups of transmission  customers. Our Board of Directors determined that there was significant improvement in two of the three groups which comprise the survey  members and accordingly, in the exercise of its discretion, considered this target met. For our distribution customers, we targeted a satisfaction  rate of 86%, and we met this target. For the duration of unplanned customer interruptions within our distribution business, the target for 2013 was set at 6.7 hours per customer.  While we did not meet this target, our Board of Directors noted that the impact of storms in January and February of 2013 would require our  company to change work practices and alter resource levels to simply meet the target and that the cost to do so would be prohibitive and not in  the best interests of the ratepayer. Considering the storm impacts and the positive results over the balance of the year, our Board of Directors, in  the exercise of its discretion, determined that this target was met. For the duration of unplanned customer interruptions within our transmission business, the target for 2013 was 9 minutes per delivery point. We did not meet this target.  them to deliver their products and services and that customers’ expectations are for a reasonably limited duration when interruptions occur.  Transmission and distribution reliability is measured through the duration of customer interruptions.