MANAGEMENT’S DISCUSSION AND ANALYSIS • the risk that we are not able to arrange sufficient cost-effective financing to repay maturing debt and to fund capital investments and other obligations;  • the risks associated with the execution of our capital and operation, maintenance and administration programs necessary to maintain the  performance of our aging asset base;  • the risk to our facilities posed by severe weather conditions, natural disasters or catastrophic events and our limited insurance coverage  for losses resulting from these events; • future interest rates, future investment returns, inflation, changes in benefits and changes in actuarial assumptions; • the risks of counterparty default on our outstanding derivative contracts; • the risks associated with current economic uncertainty and financial market volatility; • the risk that our long-term credit rating would deteriorate; • the risk that we may incur significant costs associated with transferring assets located on Reserves (as defined in the  Indian Act  (Canada)); • the potential that we may incur significant expenses to replace some or all of the functions currently outsourced if our agreement with  Inergi is terminated or expires before a new service provider is selected;  • the impact of the ownership by the Province of lands underlying our transmission system; and  • the ability to negotiate appropriate collective agreements. We caution the reader that the above list of factors is not exhaustive. Some of these and other factors are discussed in more detail in the section  Risk Management and Risk Factors in this MD&A. You should review this section in detail. In addition, we caution the reader that information provided in this MD&A regarding our outlook on certain matters, including potential future  expenditures, is provided in order to give context to the nature of some of our future plans and may not be appropriate for other purposes. Additional information about the Company, including the Company’s Annual Information Form, can be found on SEDAR at www.sedar.com and  on the US Securities and Exchange Commission’s website at www.sec.gov. 47 HYDRO ONE ANNUAL REPORT 2013