CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS  OF CHANGES IN SHAREHOLDER’S EQUITY  For the years ended December 31, 2013 and 2012 Accumulated Other  Total Year ended December 31, 2013 Common Retained Comprehensive Shareholder’s (millions of Canadian dollars) Shares Earnings Loss Equity January 1, 2013  3,314 3,202 (9) 6,507 Net income  – 803 – 803 Other comprehensive income  – – – – Dividends on preferred shares  – (18) – (18) Dividends on common shares  – (200) – (200) December 31, 2013 3,314 3,787 (9) 7,092 Accumulated Other  Total Year ended December 31, 2012  Common Retained Comprehensive Shareholder’s (millions of Canadian dollars)  Shares Earnings Loss Equity January 1, 2012  3,314  2,827  (10)  6,131 Net income – 745 – 745 Other comprehensive income  –  –  1  1 Dividends on preferred shares  –  (18)  –  (18) Dividends on common shares  –  (352)  –  (352) December 31, 2012 3,314 3,202 (9) 6,507 See accompanying notes to Consolidated Financial Statements. 53 HYDRO ONE ANNUAL REPORT 2013