MANAGEMENT’S DISCUSSION AND ANALYSIS  capital investments; expectations regarding generation connection investments; statements regarding expected future capital and development  investments, the timing of these expenditures and our investment plans; expectations regarding OPA recommendations; statements regarding  contractual obligations and other commercial commitments; statements related to the OEB; statements regarding future pension contributions,  our pension plan and actuarial valuation; statements about our outsourcing arrangement with Inergi and such future outsourcing arrangements;  expectations regarding work and costs of compliance with environmental and health and safety regulations; statements related to the LTEP; and  statements related to LDC consolidation including our acquisition of Norfolk Power. Words such as “expect”, “anticipate”, “intend”, “attempt”,  “may”, “plan”, “will”, “believe”, “seek”, “estimate”, “goal”, “aim”, “target”, and variations of such words and similar expressions are intended  to identify such forward-looking statements. These statements are not guarantees of future performance and involve assumptions and risks  and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed, implied or  forecasted in such forward-looking statements. We do not intend, and we disclaim any obligation, to update any forward-looking statements,  except as required by law. These forward-looking statements are based on a variety of factors and assumptions including, but not limited to, the following: no unforeseen  changes in the legislative and operating framework for Ontario’s electricity market; favourable decisions from the OEB and other regulatory  bodies concerning outstanding rate and other applications; no delays in obtaining the required approvals; no unforeseen changes in rate orders  or rate structures for our distribution and transmission businesses; continued use of US GAAP; a stable regulatory environment; no unfavourable  changes in environmental regulation; and no significant event occurring outside the ordinary course of business. These assumptions are based  on information currently available to us, including information obtained from third-party sources. Actual results may differ materially from those  predicted by such forward-looking statements. While we do not know what impact any of these differences may have, our business, results of  operations, financial condition and our credit stability may be materially adversely affected. Factors that could cause actual results or outcomes  to differ materially from the results expressed or implied by forward-looking statements include, among other things:  • the risk that unexpected capital investments may be needed to support renewable generation or resolve unforeseen technical issues; • the risk that previously granted regulatory approvals may be subsequently challenged, appealed or overturned; • the inability to prepare financial statements in US GAAP; • the impact of the 2010 LTEP and the 2013 LTEP on our company and the costs and expenses arising therefrom; • the risk that future environmental expenditures are not recoverable in future electricity rates; • the risk that the presence of release of hazardous or harmful substances could lead to claims by third parties and/or governmental orders; • the risk that assumptions that form the basis of our recorded environmental liabilities and related regulatory assets may change; • the risks associated with information system security, with maintaining a complex information technology system infrastructure, and with  transitioning most of our financial and business processes to an integrated business and financial reporting system; • the risks associated with changes in the forecast long-term Government of Canada bond yield; • the risks related to our workforce demographic and our potential inability to attract and retain qualified personnel; • public opposition to and delays or denials of the requisite approvals and accommodations for our planned projects; • the risks associated with being controlled by the Province including the possibility that the Province may make declarations pursuant to the  memorandum of agreement, as well as potential conflicts of interest that may arise between us, the Province and related parties; • the risks associated with being subject to extensive regulation including risks associated with OEB action or inaction, including regulatory  decisions regarding our revenue requirements, cost recovery, rates, acquisitions and divestitures;  • unanticipated changes in electricity demand or in our costs; 46 HYDRO ONE ANNUAL REPORT 2013