MANAGEMENT’S DISCUSSION AND ANALYSIS QUARTERLY RESULTS OF OPERATIONS The following table sets forth unaudited quarterly information for each of the eight quarters, from the quarter ended March 31, 2012 through  December 31, 2013. This information has been derived from our unaudited interim Consolidated Financial Statements and our audited annual  Consolidated Financial Statements which include all adjustments, consisting only of normal recurring adjustments, necessary for fair presentation  of our financial position and results of operations for those periods. These operating results are not necessarily indicative of results for any future  period and should not be relied upon to predict our future performance. Electricity demand generally follows normal weather-related variations, and consequently, our electricity-related revenues and profit, all other things being equal, would tend to  be higher in the first and third quarters than in the second and fourth quarters.  Our primary sources of liquidity and capital resources are funds generated from our operations, debt capital market borrowings and bank  financing. These resources will be used to satisfy our capital resource requirements, which continue to include our capital expenditures, servicing  and repayment of our debt, and dividends. Net cash from operating activities increased by $110 million to $1,404 million in 2013, compared to 2012. The increase was primarily  due to higher 2013 net income, compared to 2012, as well as changes in accrual balances, mainly related to timing of tax payments and  to capital projects. The increase was partially offset by growth in accounts receivable balances, resulting from higher revenues and lower  collections in the period. Short-term liquidity is provided through funds from operations, our Commercial Paper Program, under which we are authorized to issue up to  $1,000 million in short-term notes with a term to maturity of less than 365 days, our revolving credit facility, and our holding of Province of  Ontario Floating-Rate Notes. Our Commercial Paper Program is supported by our $1,500 million committed revolving credit facility with a syndicate of banks, which  matures in June 2018. In addition, our investment in Province of Ontario Floating-Rate Notes of $250 million (with a fair value of $251 million  at December 31, 2013) maturing on November 19, 2014 also provides temporary liquidity. The short-term liquidity under this program and  anticipated levels of funds from operations should be sufficient to fund our normal operating requirements. 27 HYDRO ONE ANNUAL REPORT 2013 Financing Activities Operating Activities Summary of Sources and Uses of Cash LIQUIDITY AND CAPITAL RESOURCES (millions of Canadian dollars) 2013 2012 Quarter ended Dec. 31  Sept. 30  Jun. 30  Mar. 31 Dec. 31  Sept. 30  Jun. 30  Mar. 31 Total revenue  1,557 1,542 1,403 1,572 1,435 1,466 1,359 1,468 Net income  160 218 168 257 165 201 169 210 Net income to common shareholder  155 214 163 253 160 197 164 206 Year ended December 31  (millions of Canadian dollars) 2013 2012 Operating activities 1,404 1,294 Financing activities Long-term debt issued  1,185 1,085 Long-term debt retired  (600) (600) Dividends paid  (218) (370) Investing activities Capital expenditures  (1,412) (1,463) Other financing and investing activities 11 21 Net change in cash and cash equivalents 370 (33)