Hydro One (OTC: HRNNF) boosts Q2 2026 earnings on higher regulated revenues

Rhea-AI Filing Summary

Hydro One Limited reported solid growth for the quarter ended June 30, 2026. Revenues rose to $2,302 million from $2,066 million, driven by Ontario Energy Board‑approved 2026 rate increases in both transmission and distribution and slightly higher demand. Revenues, net of purchased power, increased to $1,231 million, while purchased power costs rose but remain fully recoverable from customers.

Net income attributable to common shareholders grew to $370 million from $327 million, and basic EPS increased to $0.62 from $0.54. For the first half of 2026, revenues were $4,950 million and net income to common shareholders was $761 million, both up over 10% year over year. Operating performance benefited from higher regulated revenues and lower storm‑related asset removal costs, partially offset by higher work program and support costs and higher financing charges from increased long‑term debt.

Cash generation remained strong, with Q2 net cash from operating activities of $686 million and quarterly FFO of $706 million, supporting significant capital investment of $812 million and a higher common dividend of $0.3531 per share. The balance sheet is leveraged, with a Net Debt to capitalization ratio of 59.9% and large committed credit facilities to fund an extensive transmission build‑out pipeline.

Positive

• Net income attributable to common shareholders increased 13.1% year over year in Q2 2026 to $370 million, with EPS up 14.8% to $0.62, reflecting stronger regulated earnings.
• Revenues grew 11.4% in Q2 2026 to $2,302 million, supported by OEB‑approved 2026 rate increases in both transmission and distribution and higher electricity demand.
• Funds from operations rose 14.4% in Q2 2026 to $706 million, improving the annualized FFO to Net Debt ratio to 14.1%, which enhances debt service capacity.
• Assets placed in-service increased 11.2% to $1,128 million for the first half of 2026, indicating continued progress on major grid investment and modernization projects.

Negative

• Net Debt to capitalization reached 59.9% as of June 30, 2026, slightly above 59.5% at year‑end 2025, reflecting higher long‑term borrowings and elevating financial leverage.

Filing Explained

Hydro One completed US$1,000 million of senior-note issuance, while its equity-capable shelf remained unused and award-related dilution stayed conditional as of August 11, 2026.

Form 6-K is an interim report used by a foreign private issuer to furnish material information published in its home market. This filing reports unaudited results and financial position through June 30, 2026; its main new structural detail is that debt financing was completed, while no securities had been issued under the company’s equity-capable shelf.

Hydro One reported that Hydro One Inc. issued US$1,000 million of senior notes during the six months, and consolidated long-term debt totaled C$19,928 million at June 30, 2026. The company’s Universal Base Shelf Prospectus still provided capacity to offer debt, equity, or other securities through September 19, 2026, but the filing states that no securities had been issued under it.

The filing also states that up to 1,236,448 additional common shares would be issued if all outstanding share grants and LTIP awards vested and were exercised as of August 11, 2026. Additional shares increase the total share count and reduce an existing holder’s percentage ownership absent offsetting changes, so this is potential—not completed—dilution.

The relevant watch item is the Universal Base Shelf Prospectus’s September 19, 2026 end date: the filing establishes that it remained unused at quarter-end, not whether securities will subsequently be offered under it.

Key Figures

Q2 2026 Revenues: 2,302 million Canadian dollars Q2 2026 Net income to common shareholders: 370 million Canadian dollars Q2 2026 Basic EPS: $0.62 +5 more

8 metrics

Q2 2026 Revenues 2,302 million Canadian dollars Total revenues for the three months ended June 30, 2026

Q2 2026 Net income to common shareholders 370 million Canadian dollars Net income attributable to common shareholders for the quarter

Q2 2026 Basic EPS $0.62 Basic earnings per common share for the three months ended June 30, 2026

Q2 2026 Funds from operations 706 million Canadian dollars FFO for the three months ended June 30, 2026

Net Debt to capitalization ratio 59.9% Ratio as at June 30, 2026

Capital investments H1 2026 1,527 million Canadian dollars Total capital investments for the six months ended June 30, 2026

Q2 2026 Net cash from operating activities 686 million Canadian dollars Cash flows from operating activities for the quarter

Quarterly dividend per common share $0.3531 Dividend declared on August 11, 2026, payable September 29, 2026

Key Terms

revenues, net of purchased power, Funds from operations ( FFO ), rate-regulated, accelerated capital cost allowance, +2 more

6 terms

revenues, net of purchased power financial

"Revenues, net of purchased power 1 | 1,231 | 1,167 | 5.5 | %"

Funds from operations ( FFO ) financial

"Funds from operations ( FFO ) 1 | 706 | 617 | 14.4 | %"

rate-regulated regulatory

"The transmission business consists of the transmission system operated by Hydro One Inc.’s rate-regulated subsidiaries"

A rate-regulated company provides goods or services whose prices and allowed returns are set or approved by a government regulator rather than decided freely in the market. For investors, that means revenue and profit are often more stable and predictable—like a store that must get city approval before raising prices—but growth and upside are limited because earnings depend on regulator decisions rather than pure customer demand.

accelerated capital cost allowance financial

"accelerated tax depreciation of up to three times the first-year rate for certain eligible capital investments"

cross-currency swaps financial

"fixed-for-fixed cross-currency swaps, intended to mitigate the foreign currency risk related to the principal and interest"

A cross-currency swap is a contract where two parties agree to exchange loan payments and principal in different currencies over a set period, effectively swapping the currency and often the interest rate of their obligations. For investors, it matters because it lets companies and funds lock in predictable cash flows and shield returns or debt costs from exchange-rate swings—like trading the payments on a foreign mortgage so currency moves don’t suddenly change what you owe or receive.

Net Debt to capitalization ratio financial

"Net Debt to capitalization ratio 1 | 59.9 | %"

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FAQ

How did Hydro One (HRNNF) perform financially in Q2 2026?

Hydro One delivered Q2 2026 net income to common shareholders of $370 million, up from $327 million, on revenues of $2,302 million. EPS increased to $0.62 from $0.54, driven mainly by higher regulated transmission and distribution revenues.

What were Hydro One (HRNNF)’s results for the first half of 2026?

For the six months ended June 30, 2026, Hydro One reported revenues of $4,950 million and net income to common shareholders of $761 million, compared with $4,474 million and $685 million a year earlier, reflecting double‑digit earnings growth.

How strong was Hydro One (HRNNF)’s cash flow in Q2 2026?

Hydro One generated net cash from operating activities of $686 million in Q2 2026 and Funds from operations of $706 million. These robust cash flows supported $812 million of capital investments and ongoing dividend payments to shareholders.

What is Hydro One (HRNNF)’s leverage as of June 30, 2026?

As of June 30, 2026, Hydro One’s Net Debt to capitalization ratio was 59.9%, slightly above 59.5% at December 31, 2025. Total long‑term debt, including current portion, carried a fair value of $19,700 million versus a $19,928 million carrying value.

How much is Hydro One (HRNNF) investing in its grid in 2026?

Hydro One incurred capital investments of $812 million in Q2 2026 and $1,527 million in the first half, mainly in transmission and distribution sustaining and development projects, while placing $1,128 million of assets in service to support system reliability and growth.

What dividend did Hydro One (HRNNF) declare in 2026?

In 2026, Hydro One declared and paid cash dividends totaling $412 million for the first half, including $0.3531 per share for the June 30, 2026 payment. A further $0.3531 per share dividend, totaling $211 million, was declared for payment on September 29, 2026.

How did Hydro One (HRNNF)’s segment revenues evolve in 2026?

For the first half of 2026, Hydro One’s transmission revenues were $1,331 million and distribution revenues $3,589 million, up 5.8% and 12.3% respectively versus 2025, supported by new OEB‑approved rates and higher electricity consumption.

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of: August 2026

Commission File Number: 333-225519-01

HYDRO ONE LIMITED

(Translation of Registrant’s name into English)

483 Bay Street, South Tower, 8th Floor, Toronto Ontario M5G 2P5 Canada

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☐            Form 40-F  ☒

EXHIBIT INDEX

99.1						Unaudited interim consolidated financial statements of the Registrant as at and for the three and six months ended June 30, 2026 and 2025
99.2						Management’s Discussion and Analysis of the Registrant as at and for the three and six months ended June 30, 2026 and 2025
99.3						Certification of President and Chief Executive Officer
99.4						Certification of Executive Vice President, Chief Financial and Regulatory Officer

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

						HYDRO ONE LIMITED
						/s/ Harry Taylor
						Name: Harry Taylor
						Title:   Executive Vice President, Chief Financial and Regulatory Officer
						Date:			August 12, 2026

HYDRO ONE LIMITED

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited)

For the three and six months ended June 30, 2026 and 2025

			Three months ended June 30						Six months ended June 30
(millions of Canadian dollars, except per share amounts)			2026			2025			2026			2025
Revenues
Distribution (includes related party revenues of $103 and $207 (2025 - $111 and $222) for the three and six months ended June 30, respectively) (Note 23)			1,619			1,434			3,589			3,195
Transmission (includes related party revenues of $661 and $1,320 (2025 - $613 and $1,235) for the three and six months ended June 30, respectively) (Note 23)			667			622			1,331			1,258
Other			16			10			30			21
			2,302			2,066			4,950			4,474
Costs
Purchased power (includes related party costs of $628 and $1,776 (2025 - $459 and $1,389) for the three and six months ended June 30, respectively) (Note 23)			1,071			899			2,495			2,119
Operation, maintenance and administration (Note 23)			331			320			660			652
Depreciation, amortization and asset removal costs (Note 4)			280			288			553			552
			1,682			1,507			3,708			3,323
Income before financing charges, equity income (loss) and income tax expense			620			559			1,242			1,151
Financing charges (Note 5)			181			169			357			332
Equity income (loss) (Note 12)			4			—			(7)			—
Income before income tax expense			443			390			878			819
Income tax expense (Note 6)			69			61			110			129
Net income			374			329			768			690
Other comprehensive (loss) income			(7)			2			(6)			1
Comprehensive income			367			331			762			691
Net income attributable to:
Noncontrolling interest			4			2			7			5
Common shareholders			370			327			761			685
			374			329			768			690
Comprehensive income attributable to:
Noncontrolling interest			4			2			7			5
Common shareholders			363			329			755			686
			367			331			762			691
Earnings per common share (Note 20)
Basic			$0.62			$0.54			$1.27			$1.14
Diluted			$0.62			$0.54			$1.27			$1.14
Dividends per common share declared (Note 19)			$0.36			$0.34			$0.69			$0.65

See accompanying notes to Condensed Interim Consolidated Financial Statements (unaudited).

1

HYDRO ONE LIMITED

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS (unaudited)

As at June 30, 2026 and December 31, 2025

As at (millions of Canadian dollars)			June 30, 2026			December 31, 2025
Assets
Current assets:
Cash and cash equivalents			643			549
Accounts receivable (Note 7)			1,108			1,083
Due from related parties			418			409
Other current assets (Note 8)			187			133
			2,356			2,174
Property, plant and equipment (Note 9)			32,432			31,450
Other long-term assets:
Regulatory assets (Note 11)			4,013			3,857
Deferred income tax assets			139			135
Intangible assets (Note 10)			632			654
Goodwill			378			378
Other assets (Note 12)			1,124			1,023
			6,286			6,047
Total assets			41,074			39,671
Liabilities
Current liabilities:
Short-term notes payable (Note 15)			100			100
Long-term debt payable within one year (Notes 15 & 16)			425			925
Accounts payable and other current liabilities (Note 13)			1,933			2,086
Due to related parties			213			479
			2,671			3,590
Long-term liabilities:
Long-term debt (Notes 15 & 16)			19,503			18,092
Regulatory liabilities (Note 11)			1,859			1,621
Deferred income tax liabilities			2,048			1,799
Other long-term liabilities (Note 14)			1,875			1,823
			25,285			23,335
Total liabilities			27,956			26,925
Contingencies and Commitments (Notes 25 & 26)
Subsequent Events (Note 28)
Noncontrolling interest subject to redemption			19			19
Equity
Common shares (Note 18)			5,728			5,721
Additional paid-in capital			22			25
Retained earnings			7,260			6,911
Accumulated other comprehensive loss			(15)			(9)
Hydro One shareholders’ equity			12,995			12,648
Noncontrolling interest (Note 22)			104			79
Total equity			13,099			12,727
			41,074			39,671

See accompanying notes to Condensed Interim Consolidated Financial Statements (unaudited).

2

HYDRO ONE LIMITED

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited)

For the six months ended June 30, 2026 and 2025

Six months ended June 30, 2026 (millions of Canadian dollars)			Common Shares						Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Hydro One Shareholders’ Equity			Non-controlling Interest			Total Equity
January 1, 2026			5,721						25			6,911			(9)			12,648			79			12,727
Net income			—						—			761			—			761			6			767
Other comprehensive loss			—						—			—			(6)			(6)			—			(6)
Distributions to noncontrolling interest			—						—			—			—			—			(5)			(5)
Contributions from sale of noncontrolling interest (Note 22)			—						—			—			—			—			24			24
Dividends on common shares (Note 19)			—						—			(412)			—			(412)			—			(412)
Common shares issued			7						(7)			—			—			—			—			—
Stock-based compensation			—						4			—			—			4			—			4
June 30, 2026			5,728						22			7,260			(15)			12,995			104			13,099

Six months ended June 30, 2025 (millions of Canadian dollars)			Common Shares						Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Hydro One Shareholders’ Equity			Non-controlling Interest			Total Equity
January 1, 2025			5,713						28			6,360			(12)			12,089			65			12,154
Net income			—						—			685			—			685			4			689
Other comprehensive income (loss)			—						—			—			1			1			—			1
Distributions to noncontrolling interest			—						—			—			—			—			(6)			(6)
Contributions from sale of noncontrolling interest			—						—			—			—			—			8			8
Dividends on common shares (Note 19)			—						—			(388)			—			(388)			—			(388)
Common shares issued			7						(7)			—			—			—			—			—
Stock-based compensation			—						3			—			—			3			—			3
June 30, 2025			5,720						24			6,657			(11)			12,390			71			12,461

See accompanying notes to Condensed Interim Consolidated Financial Statements (unaudited).

3

HYDRO ONE LIMITED

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

For the three and six months ended June 30, 2026 and 2025

			Three months ended June 30						Six months ended June 30
(millions of Canadian dollars)			2026			2025			2026			2025
Operating activities
Net income			374			329			768			690
Environmental expenditures			(1)			—			(1)			(1)
Adjustments for non-cash items:
Depreciation and amortization (Note 4)			248			232			497			465
Regulatory assets and liabilities			34			16			40			71
Deferred income tax expense			42			33			81			67
Other			12			9			32			15
Changes in non-cash balances related to operations (Note 24)			(23)			(14)			(337)			(192)
Net cash from operating activities			686			605			1,080			1,115
Financing activities
Long-term debt issued			1,373			—			1,373			—
Long-term debt repaid			—			(350)			(500)			(750)
Short-term notes issued			925			2,065			1,725			3,140
Short-term notes repaid			(1,425)			(1,350)			(1,725)			(1,965)
Dividends paid (Note 19)			(212)			(200)			(412)			(388)
Distributions paid to noncontrolling interest			(3)			(2)			(6)			(7)
Contributions received from sale of noncontrolling interest (Note 22)			—			8			24			8
Costs to obtain financing			(10)			(1)			(10)			(1)
Net cash from financing activities			648			170			469			37
Investing activities
Capital expenditures (Note 24)
Property, plant and equipment			(659)			(786)			(1,346)			(1,408)
Intangible assets			(16)			(8)			(28)			(29)
Additions to future use assets			(60)			(43)			(126)			(102)
Proceeds from sale of equity investments (Note 12)			—			—			30			—
Investment in equity investees (Note 12)			—			—			—			(261)
Capital contributions received			—			—			—			4
Other			7			10			15			(1)
Net cash used in investing activities			(728)			(827)			(1,455)			(1,797)
Net change in cash and cash equivalents			606			(52)			94			(645)
Cash and cash equivalents, beginning of period			37			123			549			716
Cash and cash equivalents, end of period			643			71			643			71

See accompanying notes to Condensed Interim Consolidated Financial Statements (unaudited).

4

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

For the three and six months ended June 30, 2026 and 2025

1.    DESCRIPTION OF THE BUSINESS

Hydro One Limited (Hydro One or the Company) was incorporated on August 31, 2015, under the Business Corporations Act (Ontario). On October 31, 2015, the Company acquired Hydro One Inc., a company previously wholly-owned by the Province of Ontario (Province). As at June 30, 2026, the Province held approximately 47.1% (December 31, 2025 - 47.1%) of the common shares of Hydro One. The businesses of Hydro One are comprised of the following three segments:

•The Transmission segment consists of owning and operating Hydro One’s transmission system which transmits high voltage electricity across the province, interconnecting local distribution companies and certain large directly connected industrial customers throughout the Ontario electricity grid. The transmission business consists of the transmission system operated by Hydro One Inc.’s rate-regulated subsidiaries, Hydro One Networks Inc. (Hydro One Networks), Hydro One Sault Ste. Marie LP (HOSSM), an approximate 66% interest in B2M Limited Partnership (B2M LP), an approximate 55% interest in Niagara Reinforcement Limited Partnership (NRLP), and an approximate 50% (December 31, 2025 - 80%) interest in Chatham x Lakeshore Limited Partnership (CLLP). The Transmission segment also includes Hydro One Network’s approximate 40% (December 31, 2025 - 48%) minority interest in the East-West Tie Limited Partnership (EWT LP).

•The Distribution segment owns and operates Hydro One’s distribution system which delivers electricity to end customers and certain other municipal electricity distributors within Ontario. The distribution business consists of the distribution systems operated by Hydro One Inc.'s rate-regulated subsidiaries, Hydro One Networks and Hydro One Remote Communities Inc. (Hydro One Remotes).

•The Other segment consists principally of Hydro One’s telecommunications business, which provides telecommunications support for the Company’s transmission and distribution businesses, as well as certain corporate activities, and is not rate-regulated. The telecommunications business is carried out by Hydro One's wholly-owned subsidiary, Acronym Solutions Inc. (Acronym). In addition to supporting Hydro One's regulated business segments, Acronym offers a comprehensive suite of Information Communications Technology solutions. Furthermore, Hydro One's other segment also includes Aux Energy Inc., a wholly-owned subsidiary that provides energy solutions to commercial and industrial clients, and Ontario Charging Network LP (OCN LP), a wholly-owned subsidiary that owns and operates electric vehicle fast charging stations across Ontario under the Ivy Charging Network brand.

Earnings for interim periods are impacted by seasonal weather conditions affecting customer demand, market pricing, and the timing of regulatory decisions.

2.    SIGNIFICANT ACCOUNTING POLICIES

Basis of Consolidation and Presentation

These unaudited condensed interim consolidated financial statements (Consolidated Financial Statements) include the accounts of the Company and its subsidiaries. Inter-company transactions and balances have been eliminated.

Basis of Accounting

These Consolidated Financial Statements are prepared and presented in accordance with United States (U.S.) generally accepted accounting principles (GAAP) for interim financial statements and all financial information is presented in Canadian dollars.

The accounting policies applied are consistent with those outlined in Hydro One's annual audited consolidated financial statements for the year ended December 31, 2025, with the exception of the adoption of new accounting standards as described in Note 3 - New Accounting Pronouncements. These Consolidated Financial Statements reflect adjustments, that are, in the opinion of management, necessary to fairly reflect the financial position and results of operations for the respective periods. These Consolidated Financial Statements do not include all disclosures required in the annual financial statements and should be read in conjunction with Hydro One’s annual audited consolidated financial statements for the year ended December 31, 2025.

5

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

3.    NEW ACCOUNTING PRONOUNCEMENTS

The following table presents Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) that are applicable to Hydro One:

Recently Adopted Accounting Guidance

Guidance

Date issued

Description

ASU Effective Date

Impact on Hydro One

ASU 2025-05

July 2025

The amendments allow all entities to use a practical expedient when estimating expected credit losses for current accounts receivable and contract assets under Topic 606, by assuming that current conditions as of the balance sheet date remain unchanged over the asset’s life. Additionally, entities other than public business entities that elect this expedient may adopt an accounting policy to consider post–balance sheet date collection activity in their credit loss estimates.

Annual and interim periods beginning after December 15, 2025.

No impact upon adoption

Recently Issued Accounting Guidance Not Yet Adopted

Guidance

Date issued

Description

ASU Effective Date

Impact on Hydro One

ASU 2023-06

October 2023

The amendments represent changes to clarify or improve disclosure or presentation requirements of a variety of subtopics in the FASB Codification. Many of the amendments allow users to more easily compare entities subject to the U.S. Securities and Exchange’s (SEC) existing disclosures with those entities that were not previously subject to the SEC’s requirements. Also, the amendments align the requirements in the Codification with the SEC’s regulations. Applicable to all entities, if by June 30, 2027 the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entity.

Two years subsequent to the date on which the SEC’s removal of that related disclosure becomes effective.

Under assessment

ASU 2024-03

November 2024

The amendments require public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods, which are not generally presented in the current financial statements.

Annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027.

Under assessment

ASU 2025-03

May 2025

The amendments require entities to apply the guidance for identifying the accounting acquirer in transactions where a business that qualifies as a Variable Interest Entity is acquired through the exchange of equity interests.

Annual and interim periods beginning after December 15, 2026.

No impact upon adoption

ASU 2025-06

September 2025

The amendments modernize accounting for internal-use software by removing outdated development stage references and introducing a capitalization threshold based on management authorization and project completion probability.

Annual and interim periods beginning after December 15, 2027.

Under assessment

ASU 2025-09

November 2025

The amendments expand hedge-accounting eligibility and better align the guidance with common risk‑management practices. Key updates allow grouping forecasted transactions with similar exposure, simplify hedging of choose‑your‑rate variable‑rate debt, and broaden eligibility for hedging nonfinancial components. The guidance modernizes treatment of certain option‑based derivatives and resolves mismatches in dual hedge relationships.

Annual and interim periods beginning after December 15, 2026.

Under assessment

6

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

Guidance

Date issued

Description

ASU Effective Date

Impact on Hydro One

ASU 2025-10

December 2025

The amendments establish authoritative GAAP for government grants, setting recognition, measurement, presentation, and disclosure requirements.

Annual and interim periods beginning after December 15, 2028.

Under assessment

ASU 2025-11

December 2025

The amendments clarify interim reporting by establishing a complete list of required GAAP interim disclosures. They introduce a disclosure principle requiring entities to report material events occurring after the annual reporting period. The Update also clarifies types of interim reports and the form and content of interim financial statements. Overall, the changes enhance clarity and consistency without altering existing disclosure requirements.

Interim reporting periods within annual reporting periods beginning after December 15, 2027.

Under assessment

ASU 2025-12

December 2025

The amendments clarify existing guidance, correct errors, and introduce minor improvements to numerous Codification Topics, thereby making the requirements easier for entities to understand and apply.

Annual and interim periods beginning after December 15, 2026.

Under assessment

ASU 2026-02

May 2026

The amendments establish authoritative guidance on the accounting and disclosure of environmental credits and environmental credit obligations. The guidance establishes a consistent framework for recognizing, measuring, presenting, and disclosing environmental credits and related compliance obligations arising from regulatory compliance programs. Overall, the changes improve comparability, transparency, and consistency in financial reporting.

Annual and interim periods beginning after December 15, 2027.

Under assessment

4.    DEPRECIATION, AMORTIZATION AND ASSET REMOVAL COSTS

			Three months ended June 30						Six months ended June 30
(millions of dollars)			2026			2025			2026			2025
Depreciation of property, plant and equipment			224			210			450			421
Amortization of intangible assets			23			22			46			43
Amortization of regulatory assets			1			—			1			1
Depreciation and amortization			248			232			497			465
Asset removal costs			32			56			56			87
			280			288			553			552

5. FINANCING CHARGES

			Three months ended June 30						Six months ended June 30
(millions of dollars)			2026			2025			2026			2025
Interest on long-term debt			203			181			399			359
Interest on regulatory accounts			5			6			10			13
Interest on short-term notes			4			6			5			9
Realized loss on cash flow hedges (Note 16)			1			1			3			2
Other			3			5			7			8
Less: Interest capitalized on construction and development in progress			(31)			(27)			(60)			(51)
Interest earned on cash and cash equivalents			(4)			(3)			(7)			(8)
			181			169			357			332

7

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

6.    INCOME TAXES

As a rate-regulated utility company, the Company recovers income taxes from its ratepayers based on estimated current income tax expense in respect of its regulated business. The amounts of deferred income taxes related to regulated operations which are considered to be more likely-than-not to be recoverable from, or refundable to, ratepayers in future periods are recognized as deferred income tax regulatory assets or deferred income tax regulatory liabilities, with an offset to deferred income tax recovery or deferred income tax expense, respectively. The Company’s consolidated income tax expense or income tax recovery for the period includes all current and deferred income tax expenses for the period net of the regulated accounting offset to deferred income tax expense arising from temporary differences to be recovered from, or refunded to, customers in future rates. Thus, the Company’s income tax expense or income tax recovery differs from the amount that would have been recorded using the statutory income tax rate. As the Company operates in Ontario, it is subject to the combined Canadian federal and Ontario statutory rates of 26.5%.

The reconciliation between the statutory and the effective tax rates is provided as follows:

			2026						2025
Three months ended June 30			(millions of dollars)			(percentage)			(millions of dollars)			(percentage)
Income before income tax expense			443						390
Income tax expense at statutory rate of 26.5% (2025 - 26.5%)			118			26.5		%	103			26.5		%
Increase (decrease) resulting from:
Net temporary differences recoverable in future rates charged to customers:
Capital cost allowance in excess of depreciation and amortization1			(27)			(6.0)		%	(22)			(5.6)		%
Overheads capitalized for accounting but deducted for tax purposes			(12)			(2.7)		%	(12)			(3.1)		%
Interest capitalized for accounting but deducted for tax purposes			(11)			(2.5)		%	(8)			(2.1)		%
Pension and post-retirement benefit contributions in excess of pension expense			(1)			(0.2)		%	(2)			(0.5)		%
Other			—			—		%	1			0.2		%
Net temporary differences attributable to regulated business			(51)			(11.4)		%	(43)			(11.1)		%
Net permanent differences			2			0.5		%	1			0.2		%
Total income tax expense			69			15.6		%	61			15.6		%

1 Included in current period’s amount is the accelerated tax depreciation of up to three times the first-year rate for certain eligible capital investments acquired after 2024 and placed in-service before 2034, as re-introduced under Bill C-15, enacted in the first quarter of 2026.

			2026						2025
Six months ended June 30			(millions of dollars)			(percentage)			(millions of dollars)			(percentage)
Income before income tax expense			878						819
Income tax expense at statutory rate of 26.5% (2025 - 26.5%)			233			26.5		%	217			26.5		%
Increase (decrease) resulting from:
Net temporary differences recoverable in future rates charged to customers:
Capital cost allowance in excess of depreciation and amortization1			(76)			(8.5)		%	(44)			(5.3)		%
Overheads capitalized for accounting but deducted for tax purposes			(26)			(3.0)		%	(24)			(2.9)		%
Interest capitalized for accounting but deducted for tax purposes			(19)			(2.2)		%	(17)			(2.1)		%
Pension and post-retirement benefit contributions in excess of pension expense			(6)			(0.7)		%	(3)			(0.4)		%
Other			3			0.3		%	(1)			(0.1)		%
Net temporary differences attributable to regulated business			(124)			(14.1)		%	(89)			(10.8)		%
Net permanent differences			1			0.1		%	1			0.1		%
Total income tax expense			110			12.5		%	129			15.8		%

1 Included in current period’s amount is the accelerated tax depreciation of up to three times the first-year rate for certain eligible capital investments acquired after 2024 and placed in-service before 2034, as re-introduced under Bill C-15, enacted in the first quarter of 2026.

8

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

7.    ACCOUNTS RECEIVABLE

As at (millions of dollars)			June 30, 2026			December 31, 2025
Accounts receivable - billed			528			467
Accounts receivable - unbilled			643			673
Accounts receivable, gross			1,171			1,140
Allowance for doubtful accounts			(63)			(57)
Accounts receivable, net			1,108			1,083

The following table shows the movements in the allowance for doubtful accounts for the six months ended June 30, 2026 and the year ended December 31, 2025:

As at (millions of dollars)						June 30, 2026			December 31, 2025
Allowance for doubtful accounts – beginning						(57)			(61)
Write-offs						7			23
Additions to allowance for doubtful accounts						(13)			(19)
Allowance for doubtful accounts – ending						(63)			(57)

8.    OTHER CURRENT ASSETS

As at (millions of dollars)			June 30, 2026			December 31, 2025
Prepaid expenses and other assets			141			92
Materials and supplies			31			31
Regulatory assets (Note 11)			15			10
			187			133

9.    PROPERTY, PLANT AND EQUIPMENT

As at (millions of dollars)									June 30, 2026			December 31, 2025
Property, plant and equipment									44,853			43,894
Less: accumulated depreciation									(15,394)			(15,042)
									29,459			28,852
Construction in progress									2,973			2,598
									32,432			31,450

10. INTANGIBLE ASSETS

As at (millions of dollars)									June 30, 2026			December 31, 2025
Intangible assets									1,599			1,590
Less: accumulated depreciation									(1,011)			(965)
									588			625
Development in progress									44			29
									632			654

9

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

11.    REGULATORY ASSETS AND LIABILITIES

Regulatory assets and liabilities arise as a result of the rate-setting process. Hydro One has recorded the following regulatory assets and liabilities:

As at (millions of dollars)			June 30, 2026			December 31, 2025
Regulatory assets:
Deferred income tax regulatory asset			3,717			3,549
Broadband deferral			68			73
Post-retirement and post-employment benefits - non-service cost			49			49
Environmental			42			43
Incremental cloud computing implementation costs deferral			42			20
Getting Ontario Connected Act variance			40			39
Stock-based compensation			12			18
Distribution rate riders			—			26
Other			58			50
Total regulatory assets			4,028			3,867
Less: current portion			(15)			(10)
			4,013			3,857
Regulatory liabilities:
Pension benefit regulatory liability			680			610
Post-retirement and post-employment benefits			336			336
Retail settlement variance (RSVA)			271			242
Earnings sharing mechanism (ESM) deferral			209			310
External revenue variance			88			75
Tax rule changes variance			75			36
Other post-employment benefits (OPEB) asymmetrical carrying charge variance			56			49
Capitalized overhead tax variance			50			50
Asset removal costs cumulative variance			44			48
Pension cost differential variance			41			30
Distribution rate riders			36			—
Advanced Metering Infrastructure (AMI) 2.0 variance			29			29
Deferred income tax regulatory liability			11			9
Other			35			27
Total regulatory liabilities			1,961			1,851
Less: current portion			(102)			(230)
			1,859			1,621

Tax Rule Changes Variance

In the first quarter of 2026, federal budget measures enacted as part of Bill C – 15 included time-limited investment incentives permitting Hydro One to claim enhanced capital cost allowance of up to three times the first-year rate for eligible capital investments acquired after 2024 and placed in-service before 2034. Hydro One is required to refund the tax benefits related to the accelerated depreciation rules to ratepayers.

12.    OTHER LONG-TERM ASSETS

As at (millions of dollars)			June 30, 2026			December 31, 2025
Deferred pension assets			680			610
Investments in associates1			252			302
Right-of-Use assets			67			47
Derivative asset (Note 16)			33			—
Other long-term assets			92			64
			1,124			1,023

1 On March 4, 2025, Hydro One Networks completed the acquisition of an approximate 48% interest in the EWT LP for approximately $261 million in cash, including closing adjustments. In February 2026, a group of First Nation Partners exercised the right to acquire additional interest in EWT LP. Proceeds received from Hydro One’s partial sale of equity interest is approximately $30 million. Following the transaction, Hydro One’s ownership in EWT LP was diluted to 40%. Accordingly, the Company recognized a loss on dilution of $14 million.

10

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

13.    ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES

As at (millions of dollars)			June 30, 2026			December 31, 2025
Accrued liabilities			912			944
Unearned revenue			375			313
Accounts payable			323			371
Accrued interest			200			203
Regulatory liabilities (Note 11)			102			230
Lease obligations			11			14
Environmental liabilities			9			7
Derivative liabilities (Note 16)			1			4
			1,933			2,086

14.    OTHER LONG-TERM LIABILITIES

As at (millions of dollars)			June 30, 2026			December 31, 2025
Post-retirement and post-employment benefit liability			1,705			1,672
Lease obligations			52			29
Asset retirement obligations			44			43
Environmental liabilities			33			37
Other long-term liabilities			41			42
			1,875			1,823

15.    DEBT AND CREDIT AGREEMENTS

Short-Term Notes and Credit Facilities

Hydro One meets its short-term liquidity requirements in part through the issuance of commercial paper under Hydro One Inc.’s commercial paper program which has a maximum authorized amount of $2,300 million. These short-term notes are denominated in Canadian dollars with varying maturities up to 365 days. The commercial paper program is supported by Hydro One Inc.’s revolving standby credit facilities totalling $3,650 million.

As at June 30, 2026, Hydro One’s consolidated committed, unsecured, and revolving credit facilities (Operating Credit Facilities) were $3,900 million, comprised of Hydro One Inc.'s credit facilities of $3,650 million and Hydro One's credit facilities of $250 million. On June 1, 2026, Hydro One Inc. increased the committed amount under the Operating Credit Facilities by $600 million and the maturity date was extended from 2030 to 2031. As at June 30, 2026, no amounts have been drawn on the Operating Credit Facilities.

The Company may use the Operating Credit Facilities for working capital and general corporate purposes. If used, interest on the Operating Credit Facilities would apply based on Canadian benchmark rates. The Operating Credit Facilities include a pricing adjustment which can increase or decrease Hydro One’s cost of borrowing based on its performance on certain sustainability performance measures, which are related to Hydro One's sustainability goals. The obligation of each lender to extend credit under its credit facility is subject to various conditions including that no event of default has occurred or would result from such credit extension.

Subsidiary Debt Guarantee

Hydro One Holdings Limited (HOHL) is an indirect wholly-owned subsidiary of Hydro One that may offer and sell debt securities. Any debt securities issued by HOHL are fully and unconditionally guaranteed by the Company. As at June 30, 2026, no debt securities have been issued by HOHL.

11

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

Long-Term Debt

The following table presents long-term debt outstanding as at June 30, 2026 and December 31, 2025:

As at (millions of dollars)			June 30, 2026			December 31, 2025
Hydro One Inc. long-term debt (a)			19,540			18,620
Hydro One long-term debt (b)			425			425
			19,965			19,045
Add: Net unamortized debt premiums			35			39
Less: Unamortized deferred debt issuance costs			(72)			(67)
Total long-term debt			19,928			19,017
Less: Long-term debt payable within one year			(425)			(925)
			19,503			18,092

(a) Hydro One Inc. long-term debt

As at June 30, 2026, long-term debt of $19,540 million (December 31, 2025 - $18,620 million) was outstanding, the majority of which was issued under Hydro One Inc.’s Medium Term Note (MTN) Program.

MTN Program

In March 2026, Hydro One Inc. filed a short form base shelf prospectus in connection with its MTN Program, which expires in April 2029.

No long-term debt was issued during the three and six months ended June 30, 2026 and 2025. During the three and six months ended June 30, 2026, $nil and $500 million of long-term debt was repaid (2025 - $350 million and $750 million).

U.S. Dollar Debt Securities

In August 2025, Hydro One Inc. filed a short form base shelf prospectus (HOI U.S. Shelf Prospectus) with securities regulatory authorities in Ontario and the U.S., which expires in September 2027.

During the three and six months ended June 30, 2026, US$1,000 million senior notes were issued (2025 - US$nil). No U.S. dollar-denominated long-term debt was repaid during the same periods in 2026 and 2025. Concurrent with the issuance, Hydro One Inc. entered into fixed-for-fixed cross-currency swap agreements with a total principal notional amount of US$1,000 million to mitigate foreign currency risk associated with the U.S. dollar-denominated debt. These swaps were designated as cash flow hedges and convert the U.S. dollar-denominated principal and interest cash flows into fixed Canadian dollar-denominated cash flows.

(b) Hydro One long-term debt

As at June 30, 2026, long-term debt of $425 million (December 31, 2025 - $425 million) was outstanding. On August 19, 2024, Hydro One filed a short form base shelf prospectus (Universal Base Shelf Prospectus) with securities regulatory authorities in Canada. The Universal Base Shelf Prospectus allows Hydro One to offer, from time to time in one or more public offerings, debt, equity or other securities, or any combination thereof, during the 25-month period ending in September 2026. As at June 30, 2026, no securities have been issued under the Universal Base Shelf Prospectus. During the three and six months ended June 30, 2026 and 2025, no long-term debt was issued or repaid.

Principal and Interest Payments

As at June 30, 2026, future principal repayments, interest payments, and related weighted-average interest rates were as follows:

									Long-Term Debt Principal Repayments						Interest Payments			Weighted-Average Interest Rate
									(millions of dollars)						(millions of dollars)			(%)
Year 1									425						832			2.8
Year 2									1,175						825			3.6
Year 3									550						785			3.0
Year 4									1,350						757			4.4
Year 5									1,820						709			3.4
									5,320						3,908			3.6
Years 6-10									5,960						2,679			4.5
Thereafter									8,685						4,720			4.4
									19,965						11,307			4.2

12

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

16.    FAIR VALUE OF FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Non-Derivative Financial Assets and Liabilities

As at June 30, 2026 and December 31, 2025, the Company’s carrying amounts of cash and cash equivalents, accounts receivable, due from related parties, short-term notes payable, accounts payable, and due to related parties are representative of fair value due to the short-term nature of these instruments.

Fair Value Measurements of Long-Term Debt

The carrying values and fair values of the Company’s long-term debt as at June 30, 2026 and December 31, 2025 are as follows:

June 30, 2026

December 31, 2025

As at (millions of dollars)

Carrying Value

Fair Value

Carrying Value

Fair Value

Long-term debt, including current portion

19,928

19,700

19,017

18,721

Fair Value Measurements of Derivative Instruments

Fair Value Hedges

As at June 30, 2026 and December 31, 2025, Hydro One Inc. had no fair value hedges.

Cash Flow Hedges

As at June 30, 2026, Hydro One Inc. had the following instruments designated as cash flow hedges:

•$425 million pay-fixed, receive-floating interest-rate swap agreement, intended to offset the variability of interest rates between December 21, 2023 and September 21, 2026; and

•$1,375 million fixed-for-fixed cross-currency swaps, intended to mitigate the foreign currency risk related to the principal and interest of the U.S. dollar fixed rate bond, between May 26, 2026 and May 30, 2031.

As at June 30, 2026 and December 31, 2025, the Company had no derivative instruments classified as undesignated contracts.

Fair Value Hierarchy

The fair value hierarchy of financial assets and liabilities as at June 30, 2026 and December 31, 2025 is as follows:

As at June 30, 2026 (millions of dollars)			Carrying Value			Fair  Value			Level 1			Level 2			Level 3
Assets:
Derivative instruments (Note 12)
Cash flow hedges, including current portion			33			33			—			33			—
			33			33			—			33			—
Liabilities:
Long-term debt, including current portion			19,928			19,700			—			19,700			—
Derivative instruments (Note 13)
Cash flow hedges, including current portion			1			1			—			1			—
			19,929			19,701			—			19,701			—

As at December 31, 2025 (millions of dollars)			Carrying Value			Fair  Value			Level 1			Level 2			Level 3
Liabilities:
Long-term debt, including current portion			19,017			18,721			—			18,721			—
Derivative instruments (Note 13)
Cash flow hedges, including current portion			4			4			—			4			—
			19,021			18,725			—			18,725			—

The fair value of the interest rate and cross-currency swaps designated as cash flow hedges is determined using a discounted cash flow method based on period-end swap yield curves.

The fair value of the long-term debt is based on unadjusted period-end market prices for the same or similar debt of the same remaining maturities.

There were no transfers between any of the fair value levels during the six months ended June 30, 2026 or the year ended December 31, 2025.

13

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

Risk Management

Exposure to market risk, credit risk and liquidity risk arises in the normal course of the Company’s business.

Market Risk

Market risk refers primarily to the risk of loss which results from changes in values, foreign exchange rates and interest rates. The Company is exposed to fluctuations in interest rates, as its regulated return on equity is derived using a formulaic approach that takes anticipated interest rates into account. The Company issues U.S. dollar-denominated long-term debt; however, the associated foreign exchange exposure is substantially mitigated through cross-currency swaps. Accordingly, the Company is not currently exposed to material foreign exchange risk. The Company is not currently exposed to material commodity price risk.

The Company uses a combination of fixed and variable-rate debt to manage the mix of its debt portfolio. The Company also uses derivative financial instruments to manage interest-rate and foreign exchange risk. The Company may utilize interest-rate swaps designated as fair value hedges as a means to manage its interest rate exposure to achieve a lower cost of debt. The Company may also utilize interest-rate derivative instruments, such as cash flow hedges, to manage its exposure to short-term interest rates or to lock in interest-rate levels on forecasted financing. The Company may utilize cross-currency swaps designated as cash flow hedges to manage its exposure to foreign exchange fluctuations, by converting U.S. dollar-denominated principal and interest cash flows into fixed Canadian dollar-denominated cash flows.

A hypothetical 100 basis points increase in interest rates associated with variable-rate debt would not have resulted in a significant decrease to Hydro One’s net income for the three and six months ended June 30, 2026 and 2025, respectively.

For derivative instruments that are designated and qualify as cash flow hedges, the unrealized gain or loss, after tax, on the derivative instrument is recorded as other comprehensive income (OCI) or other comprehensive loss (OCL) and is reclassified to net income or net loss in the same period during which the hedged transaction affects results of operations. The following table shows the amounts recorded in OCL and reclassified to financing charges for the three and six months ended June 30, 2026 and 2025:

			Three months ended June 30						Six months ended June 30
(millions of dollars)			2026			2025			2026			2025
Amounts recorded in OCL/OCI
Before tax loss (gain)			12			(1)			12			2
After tax loss (gain)			9			(1)			9			1
Amounts reclassified to financing charges
Before tax loss			1			1			3			2
After tax loss			1			—			2			1

This resulted in an accumulated other comprehensive loss (AOCL) of $10 million related to cash flow hedges as at June 30, 2026 (December 31, 2025 - $3 million).

The Company estimates that the amount of AOCL, after tax, related to cash flow hedges to be reclassified to results of operations in the next 12 months is approximately $3 million. Actual amounts reclassified to results of operations depend on the interest rate in effect until the derivative contracts mature. The amounts reclassified to results of operations are also based on actual foreign exchange gains and losses recognized on the underlying hedged exposure. For all forecasted transactions, as at June 30, 2026, the maximum term over which the Company is hedging exposures to the variability of cash flows is approximately five years.

The Pension Plan manages market risk by diversifying investments in accordance with the Pension Plan’s Statement of Investment Policies and Procedures. Interest rate risk arises from the possibility that changes in interest rates will affect the fair value of the Pension Plan’s financial instruments. In addition, changes in interest rates can also impact discount rates which impact the valuation of the pension and post-retirement and post-employment liabilities. Currency risk is the risk that the value of the Pension Plan’s financial instruments will fluctuate due to changes in foreign currencies relative to the Canadian dollar. Other price risk is the risk that the value of the Pension Plan’s investments in equity securities will fluctuate as a result of changes in market prices, other than those arising from interest risk or currency risk. All three factors may contribute to changes in values of the Pension Plan investments. See Note 17 - Pension and Post-Retirement and Post-Employment Benefits for further details.

Credit Risk

Financial assets create a risk that a counterparty will fail to discharge an obligation, causing a financial loss. As at June 30, 2026 and 2025, there were no significant concentrations of credit risk with respect to any class of financial assets. The Company’s revenue is earned from a broad base of customers. As a result, Hydro One did not earn a material amount of revenue from any single customer. As at June 30, 2026 and 2025, there was no material accounts receivable balance due from any single customer.

As at June 30, 2026, the Company’s allowance for doubtful accounts was $63 million (December 31, 2025 - $57 million). The allowance for doubtful accounts reflects the Company's current expected credit loss for all accounts receivable balances, which

14

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

are based on historical overdue balances, customer payments and write-offs. As at June 30, 2026, approximately 9% (December 31, 2025 - 7%) of the Company’s net accounts receivable were outstanding for more than 60 days.

Hydro One manages its counterparty credit risk through various techniques including (i) entering into transactions with highly rated counterparties, (ii) limiting total exposure levels with individual counterparties, (iii) entering into master agreements which enable net settlement and the contractual right of offset, and (iv) monitoring the financial condition of counterparties. The Company monitors current credit exposure to counterparties on both an individual and an aggregate basis. The Company’s credit risk for accounts receivable is limited to the carrying amounts on the consolidated balance sheets.

Derivative financial instruments result in exposure to credit risk since there is a risk of counterparty default. The maximum credit exposure of derivative contracts, before collateral, is represented by the fair value of contracts in an asset position at the reporting date. As at June 30, 2026 and 2025, Hydro One’s credit exposure for all derivative instruments and applicable payables was with four (2025 - one) financial institutions with investment grade credit ratings as counterparties.

The Pension Plan manages its counterparty credit risk with respect to bonds by investing in investment-grade corporate and government bonds and with respect to derivative instruments by transacting only with highly rated financial institutions and by ensuring that exposure is diversified across counterparties.

Liquidity Risk

Liquidity risk refers to the Company’s ability to meet its financial obligations as they come due. Hydro One meets its short-term operating liquidity requirements using cash and cash equivalents on hand, funds from operations, the issuance of commercial paper, and the Operating Credit Facilities. The short-term liquidity under the commercial paper program, the Operating Credit Facilities, and anticipated levels of funds from operations are expected to be sufficient to fund the Company’s operating requirements.

In March 2026, Hydro One Inc. filed a short form base shelf prospectus in connection with its MTN Program, which expires in April 2029. Hydro One’s Universal Base Shelf Prospectus allows it to offer, from time to time in one or more public offerings, debt, equity or other securities, or any combination thereof, during the 25-month period ending on September 19, 2026.

On November 29, 2024, HOHL filed a short form base shelf prospectus (HOHL U.S. Debt Shelf Prospectus) with securities regulatory authorities in Ontario and the U.S., that expires in December 2026. The HOHL U.S. Debt Shelf Prospectus allows HOHL to offer, from time to time in one or more public offerings, debt securities, unconditionally guaranteed by Hydro One. As at June 30, 2026, no securities have been issued under the HOHL U.S. Debt Shelf Prospectus.

On August 18, 2025, Hydro One Inc. filed the HOI U.S. Debt Shelf Prospectus, which allows Hydro One Inc. to offer, from time to time in one or more public offerings, U.S. debt securities, during the 25-month period ending on September 18, 2027.

The Pension Plan’s short-term liquidity is provided through cash and cash equivalents, contributions, investment income and proceeds from investment transactions. In the event that investments must be sold quickly to meet current obligations, the majority of the Pension Plan’s assets are invested in securities that are traded in an active market and can be readily disposed of as liquidity needs arise.

17.    PENSION AND POST-RETIREMENT AND POST-EMPLOYMENT BENEFITS

The following table provides the components of the net periodic benefit (recovery) costs for the three and six months ended June 30, 2026 and 2025:

			Pension Benefits						Post-Retirement and Post-Employment Benefits
Three months ended June 30 (millions of dollars)			2026			2025			2026			2025
Current service cost			38			37			16			15
Interest cost			112			103			23			20
Expected return on plan assets, net of expenses1			(169)			(166)			—			—
Amortization of prior service (credit) cost			(1)			(1)			3			2
Amortization of actuarial (gains)			—			(4)			(3)			(4)
Net periodic benefit (recovery) costs			(20)			(31)			39			33
Charged to results of operations2			4			5			26			24

15

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

			Pension Benefits						Post-Retirement and Post-Employment Benefits
Six months ended June 30 (millions of dollars)			2026			2025			2026			2025
Current service cost			76			74			32			30
Interest cost			224			206			46			40
Expected return on plan assets, net of expenses1			(338)			(332)			—			—
Amortization of prior service (credit) cost			(2)			(2)			6			4
Amortization of actuarial (gains)			—			(8)			(6)			(8)
Net periodic benefit (recovery) costs			(40)			(62)			78			66
Charged to results of operations2			7			11			52			47

1    The expected long-term rate of return on pension plan assets for the year ending December 31, 2026 is 7.20% (2025 - 7.20%).

2    The Company accounts for pension costs consistent with their inclusion in Ontario Energy Board (OEB)-approved rates. During the three and six months ended June 30, 2026, pension costs of $15 million (2025 - $16 million) and $30 million (2025 - $36 million), respectively, were attributed to labour, of which $4 million (2025 - $5 million) and $7 million (2025 - $11 million), respectively, was charged to operations, and $11 million (2025 - $11 million) and $23 million (2025 - $25 million), respectively, was capitalized as part of the cost of property, plant and equipment and intangible assets.

18.    SHARE CAPITAL

Common Shares

The Company is authorized to issue an unlimited number of common shares. As at June 30, 2026, the Company had 600,096,020 (December 31, 2025 - 599,781,811) common shares issued and outstanding.

Preferred Shares

The Company is authorized to issue an unlimited number of preferred shares, issuable in series. As at June 30, 2026 and December 31, 2025, the Company had no preferred shares issued and outstanding.

19.    DIVIDENDS

During the three months ended June 30, 2026, common share dividends in the amount of $212 million (2025 - $200 million) were declared and paid.

During the six months ended June 30, 2026, common share dividends in the amount of $412 million (2025 - $388 million) were declared and paid. See Note 28 - Subsequent Events for dividends declared subsequent to June 30, 2026.

20.    EARNINGS PER COMMON SHARE

Basic earnings per common share (EPS) is calculated by dividing net income attributable to common shareholders of Hydro One by the weighted-average number of common shares outstanding.

Diluted EPS is calculated by dividing net income attributable to common shareholders of Hydro One by the weighted-average number of common shares outstanding adjusted for the effects of potentially dilutive stock-based compensation plans, including the share grant plans and the Long-term Incentive Plan (LTIP), which are calculated using the treasury stock method.

			Three months ended June 30						Six months ended June 30
			2026			2025			2026			2025
Net income attributable to common shareholders (millions of dollars)			370			327			761			685
Weighted-average number of shares
Basic			600,092,567			599,771,271			599,938,048			599,604,580
Effect of dilutive stock-based compensation plans			738,158			1,073,914			811,667			1,144,466
Diluted			600,830,725			600,845,185			600,749,715			600,749,046
EPS
Basic			$0.62			$0.54			$1.27			$1.14
Diluted			$0.62			$0.54			$1.27			$1.14

16

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

21.    STOCK-BASED COMPENSATION

Share Grant Plans

Hydro One has two share grant plans (Share Grant Plans), one for the benefit of certain members of the Power Workers’ Union (the PWU Share Grant Plan) and one for the benefit of certain members of the Society of United Professionals (the Society Share Grant Plan). A summary of share grant activity under the Share Grant Plans during the three and six months ended June 30, 2026 and 2025 is presented below:

			Three months ended June 30						Six months ended June 30
(number of share grants)			2026			2025			2026			2025
Share grants outstanding - beginning			1,025,144			1,407,294			1,025,144			1,407,294
Granted			—			114			—			114
Vested and issued1			(314,209)			(335,669)			(314,209)			(335,669)
Share grants outstanding - ending			710,935			1,071,739			710,935			1,071,739

1 During the three and six months ended June 30, 2026, Hydro One issued 314,209 (2025 - 335,669) common shares from treasury to eligible employees in accordance with provisions of the PWU and the Society Share Grant Plans.

Directors' Deferred Share Unit (DSU) Plan

A summary of DSU awards activity under the Directors' DSU Plan during the three and six months ended June 30, 2026 and 2025 is presented below:

			Three months ended June 30						Six months ended June 30
(number of DSUs)			2026			2025			2026			2025
DSUs outstanding - beginning			107,206			113,198			102,256			107,296
Granted			4,956			5,315			9,906			11,217
Settled			—			(15,977)			—			(15,977)
DSUs outstanding - ending			112,162			102,536			112,162			102,536

As at June 30, 2026, a liability of $7 million (December 31, 2025 - $6 million) related to Directors' DSUs has been recorded at the closing price of the Company's common shares of $58.50 (December 31, 2025 - $54.64). This liability is included in other long-term liabilities on the consolidated balance sheets.

Management DSU Plan

A summary of DSU awards activity under the Management DSU Plan during the three and six months ended June 30, 2026 and 2025 is presented below:

			Three months ended June 30						Six months ended June 30
(number of DSUs)			2026			2025			2026			2025
DSUs outstanding - beginning			50,461			98,261			80,404			85,690
Granted			269			589			13,602			13,160
Paid			(7,586)			(11,425)			(50,862)			(11,425)
DSUs outstanding - ending			43,144			87,425			43,144			87,425

As at June 30, 2026, a liability of $3 million (December 31, 2025 - $4 million) related to Management DSUs has been recorded at the closing price of the Company's common shares of $58.50 (December 31, 2025 - $54.64). This liability is included in other long-term liabilities on the consolidated balance sheets.

17

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

LTIP

Performance Share Units (PSU) and Restricted Share Units (RSU)

A summary of PSU and RSU awards activity under the LTIP during the three and six months ended June 30, 2026 and 2025 is presented below:

			PSUs						RSUs
Three months ended June 30 (number of units)			2026			2025			2026			2025
Units outstanding - beginning			530,375			429,488			404,296			445,464
Granted			—			2,937			3,615			6,596
Forfeited			(4,862)			(10,174)			(7,712)			(15,290)
Vested			—			(3,282)			(4,730)			(5,051)
Units outstanding - ending			525,513			418,969			395,469			431,719

			PSUs						RSUs
Six months ended June 30 (number of units)			2026			2025			2026			2025
Units outstanding - beginning			399,181			286,554			391,623			322,925
Granted			131,194			170,261			141,300			141,114
Forfeited			(4,862)			(27,380)			(8,426)			(24,200)
Vested			—			(10,466)			(129,028)			(8,120)
Units outstanding - ending			525,513			418,969			395,469			431,719

The total grant date fair value of the awards granted during the three and six months ended June 30, 2026 was $nil and $16 million, respectively (2025 - $1 million and $15 million, respectively). The compensation expense related to these awards during the three and six months ended June 30, 2026 was $4 million and $8 million, respectively (2025 – $5 million and $8 million, respectively).

22.    NONCONTROLLING INTEREST

CLLP

On January 2, 2026, Hydro One Networks sold to Walpole Island First Nation an approximate 10% equity interest in CLLP for total consideration of approximately $8 million. Following the completion of the transaction, Hydro One Networks’ equity interest in CLLP was reduced to 70%. On February 2, 2026, Aamjiwnaang First Nation and Chippewas of Kettle & Stony Point First Nation collectively purchased an approximate 20% equity interest in CLLP through an equally-owned Limited Partnership for total consideration of approximately $16 million. Following the completion of the transaction, Hydro One Networks’ equity interest in CLLP was reduced to 50%.

18

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

23.    RELATED PARTY TRANSACTIONS

The Province is a shareholder of Hydro One with approximately 47.1% (2025 - 47.1%) ownership as at June 30, 2026. The Ministry of Energy and Mines (Ministry) and the Ministry of Infrastructure (MOI) are related parties to Hydro One because they are controlled by the Province. The Independent Electricity System Operator (IESO), Ontario Power Generation Inc. (OPG), Ontario Electricity Financial Corporation (OEFC), and the OEB are related parties to Hydro One because they are controlled or significantly influenced by the Ministry. Hydro One also has transactions in the normal course of business with various government ministries and organizations in Ontario that fall under the purview of the Province. The following is a summary of the Company’s related party transactions during the three and six months ended June 30, 2026 and 2025:

(millions of dollars)						Three months ended June 30						Six months ended June 30
Related Party			Transaction			2026			2025			2026			2025
Province			Dividends paid			100			94			194			182
Ministry			Broadband subsidy1,2			17			—			27			—
MOI			Broadband subsidy1,2			—			6			—			19
IESO			Power purchased			625			456			1,754			1,374
			Revenues for transmission services			660			613			1,319			1,234
			Amounts related to electricity rebates			376			233			826			508
			Distribution revenues related to rural rate protection			64			64			127			127
			Distribution revenues related to Wataynikaneyap Power LP			25			33			50			66
			Distribution revenues related to supply of electricity to remote northern communities			13			13			26			25
			Funding received related to Conservation and Demand Management programs			—			—			1			—
OPG			Power purchased			3			3			20			14
			Transmission revenues related to provision of services and supply of electricity			1			—			1			1
			Distribution revenues related to provision of services and supply of electricity			1			1			4			4
			Other revenues related to provision of services and supply of electricity			—			1			1			1
			Capital contribution received from OPG			5			6			7			16
			Costs related to the purchase of services			—			1			—			1
OEFC			Power purchased from power contracts administered by the OEFC			—			—			2			1
OEB			OEB fees			4			3			8			6

1 During 2025, Ministry replaced MOI in making broadband subsidy payments to Hydro One.

2 On October 31, 2024, the MOI announced that it has developed a program to deliver up to $400 million in subsidies to internet service providers for work associated with designated broadband projects. Effective April 2026, this was increased by the Ministry to up to $482 million.

Sales to and purchases from related parties are based on the requirements of the OEB’s Affiliate Relationships Code. Outstanding balances as at period end are interest-free and settled in cash. Invoices are issued monthly, and amounts are due and paid on a monthly basis.

24.    CONSOLIDATED STATEMENTS OF CASH FLOWS

The changes in non-cash balances related to operations consist of the following:

			Three months ended June 30						Six months ended June 30
(millions of dollars)			2026			2025			2026			2025
Accounts receivable (Note 7)			(4)			24			(25)			(68)
Due from related parties			(27)			(33)			(9)			(49)
Materials and supplies (Note 8)			(2)			(3)			—			(3)
Prepaid expenses and other assets (Note 8)			(9)			2			(49)			(2)
Other long-term assets			(20)			(10)			(26)			(19)
Accounts payable (Note 13)			1			27			(48)			7
Accrued liabilities			81			42			(5)			96
Unearned revenue (Note 13)			53			29			62			(1)
Due to related parties			(120)			(99)			(266)			(184)
Accrued interest (Note 13)			5			(1)			(3)			—
Long-term accounts payable and other long-term liabilities (Note 14)			3			—			(1)			1
Post-retirement and post-employment benefit liability			16			8			33			30
			(23)			(14)			(337)			(192)

19

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

Capital Expenditures

The following tables reconcile investments in property, plant and equipment and intangible assets and the amounts presented in the consolidated statements of cash flows for the three and six months ended June 30, 2026 and 2025. The reconciling items include net change in accruals, transfers, and capitalized depreciation.

			Three months ended June 30, 2026												Six months ended June 30, 2026
(millions of dollars)			Property, Plant and Equipment			Intangible Assets			Total						Property, Plant and Equipment			Intangible Assets			Total
Capital investments			(796)			(16)			(812)						(1,500)			(27)			(1,527)
Reconciling items			137			—			137						154			(1)			153
Cash outflow for capital expenditures			(659)			(16)			(675)						(1,346)			(28)			(1,374)

			Three months ended June 30, 2025												Six months ended June 30, 2025
(millions of dollars)			Property, Plant and Equipment			Intangible Assets			Total						Property, Plant and Equipment			Intangible Assets			Total
Capital investments			(904)			(9)			(913)						(1,622)			(26)			(1,648)
Reconciling items			118			1			119						214			(3)			211
Cash outflow for capital expenditures			(786)			(8)			(794)						(1,408)			(29)			(1,437)

Supplementary Information

			Three months ended June 30						Six months ended June 30
(millions of dollars)			2026			2025			2026			2025
Net interest paid			200			184			401			358
Income taxes paid			29			10			166			22

25.    CONTINGENCIES

Hydro One is involved in various lawsuits and claims in the normal course of business. In the opinion of management, the outcome of such matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

26.    COMMITMENTS

A summary of Hydro One’s commitments under outsourcing and other agreements due in the next five years and thereafter are as follows:

As at June 30, 2026 (millions of dollars)			Year 1			Year 2			Year 3			Year 4			Year 5			Thereafter
Outsourcing and other agreements			51			50			8			1			1			17

The following table presents a summary of Hydro One’s other commercial commitments by year of expiry in the next five years and thereafter:

As at June 30, 2026 (millions of dollars)			Year 1			Year 2			Year 3			Year 4			Year 5			Thereafter
Operating Credit Facilities1			—			—			—			—			3,900			—
Letters of credit2			175			—			—			—			—			—
Guarantees3			535			—			—			—			—			—

1 On June 1, 2026, the maturity date for the Operating Credit Facilities was extended to June 1, 2031.

2 Letters of credit consist of $166 million letters of credit related to retirement compensation arrangements, a $2 million letter of credit provided to the IESO for prudential support, and $7 million in letters of credit for various operating purposes.

3 Guarantees consist of $475 million prudential support provided to the IESO by Hydro One Inc. on behalf of its subsidiaries, as well as $60 million guarantees provided by Hydro One to ONroute relating to OCN LP (OCN Guarantee).

20

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

27.    SEGMENTED REPORTING

The Company has three reportable segments: Transmission, Distribution, and Other. The composition of these segments is described in Note 1 to the consolidated financial statements.

The designation of segments has been based on a combination of regulatory status and the nature of the services provided. Operating segments of the Company are determined based on information used by the Chief Operating Decision Maker (CODM) in deciding how to allocate resources and evaluate the performance of each of the segments. Hydro One’s CODM consists of its Chief Executive Officer and certain members of the executive leadership team. The CODM evaluates segment performance based on income before financing charges, equity income, and income tax expense from continuing operations (excluding certain allocated corporate governance costs) (EBIT). The CODM considers the key components of EBIT to understand the variances to prior period on a quarterly basis and measures them against the Company’s budget and forecast across each of the three segments on a monthly basis in order to properly allocate resources between and within the operating segments.

Three months ended June 30, 2026 (millions of dollars)			Transmission			Distribution			Other			Consolidated
Revenues			667			1,619			16			2,302
Purchased power			—			1,071			—			1,071
Operation, maintenance and administration			135			169			27			331
Depreciation, amortization and asset removal costs			146			131			3			280
Income (loss) before financing charges, equity income (loss), and income tax expense			386			248			(14)			620
Capital investments			447			361			4			812

Three months ended June 30, 2025 (millions of dollars)			Transmission			Distribution			Other			Consolidated
Revenues			622			1,434			10			2,066
Purchased power			—			899			—			899
Operation, maintenance and administration			129			163			28			320
Depreciation, amortization and asset removal costs			140			146			2			288
Income (loss) before financing charges, equity income (loss), and income tax expense			353			226			(20)			559
Capital investments			490			420			3			913

Six months ended June 30, 2026 (millions of dollars)			Transmission			Distribution			Other			Consolidated
Revenues			1,331			3,589			30			4,950
Purchased power			—			2,495			—			2,495
Operation, maintenance and administration			268			341			51			660
Depreciation, amortization and asset removal costs			289			258			6			553
Income (loss) before financing charges, equity income (loss), and income tax expense			774			495			(27)			1,242
Capital investments			878			643			6			1,527

Six months ended June 30, 2025 (millions of dollars)			Transmission			Distribution			Other			Consolidated
Revenues			1,258			3,195			21			4,474
Purchased power			—			2,119			—			2,119
Operation, maintenance and administration			258			344			50			652
Depreciation, amortization and asset removal costs			279			268			5			552
Income (loss) before financing charges, equity income (loss), and income tax expense			721			464			(34)			1,151
Capital investments			949			692			7			1,648

21

HYDRO ONE LIMITED

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

For the three and six months ended June 30, 2026 and 2025

Total Assets by Segment:

As at (millions of dollars)			June 30, 2026			December 31, 2025
Transmission			24,479			23,630
Distribution			15,681			15,160
Other			914			881
Total assets			41,074			39,671

Total Goodwill by Segment:

As at (millions of dollars)			June 30, 2026			December 31, 2025
Transmission			157			157
Distribution			216			216
Other			5			5
Total goodwill			378			378

All revenues, assets and substantially all costs, as the case may be, are earned, held or incurred in Canada.

28.    SUBSEQUENT EVENTS

Dividends

On August 11, 2026, common share dividends of $211 million ($0.3531 per common share) were declared.

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HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and six months ended June 30, 2026 and 2025

The following Management’s Discussion and Analysis (MD&A) of the financial condition and results of operations should be read together with the unaudited condensed interim consolidated financial statements and accompanying notes thereto (Consolidated Financial Statements) of Hydro One Limited (Hydro One or the Company) for the three and six months ended June 30, 2026, as well as the Company’s audited consolidated financial statements and MD&A for the year ended December 31, 2025. The Consolidated Financial Statements have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP). All financial information in this MD&A is presented in Canadian dollars, unless otherwise indicated.

The Company has prepared this MD&A in accordance with National Instrument 51-102 - Continuous Disclosure Obligations of the Canadian Securities Administrators. Under the U.S./ Canada Multijurisdictional Disclosure System, the Company is permitted to prepare this MD&A in accordance with the disclosure requirements of Canadian securities laws and regulations, which can vary from those of the U.S. This MD&A provides information as at and for the three and six months ended June 30, 2026, based on information available to management as of August 11, 2026.

Included in this MD&A are certain specified financial measures and financial ratios that are not recognized by U.S. GAAP but that are used by management to evaluate the performance of the Company and its businesses. Since these specified financial measures and financial ratios may not have a standardized meaning within U.S. GAAP, results may not be comparable to similar financial measures and financial ratios presented by other entities. These measures and ratios should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under U.S. GAAP. See "Non-GAAP Financial Measures" for a discussion of these non-GAAP financial measures and a reconciliation of such measures to the most directly comparable U.S. GAAP measure.

CONSOLIDATED FINANCIAL HIGHLIGHTS AND STATISTICS

			Three months ended June 30												Six months ended June 30
(millions of dollars, except as otherwise noted)			2026			2025			Change						2026			2025			Change
Revenues			2,302			2,066			11.4		%				4,950			4,474			10.6		%
Purchased power			1,071			899			19.1		%				2,495			2,119			17.7		%
Revenues, net of purchased power1			1,231			1,167			5.5		%				2,455			2,355			4.2		%
Operation, maintenance and administration (OM&A) costs			331			320			3.4		%				660			652			1.2		%
Depreciation, amortization and asset removal costs			280			288			(2.8		%)				553			552			0.2		%
Financing charges			181			169			7.1		%				357			332			7.5		%
Income tax expense			69			61			13.1		%				110			129			(14.7		%)
Net income attributable to common shareholders of Hydro One			370			327			13.1		%				761			685			11.1		%
Basic earnings per common share (EPS)			$0.62			$0.54			14.8		%				$1.27			$1.14			11.4		%
Diluted EPS			$0.62			$0.54			14.8		%				$1.27			$1.14			11.4		%
Net cash from operating activities			686			605			13.4		%				1,080			1,115			(3.1		%)
Funds from operations (FFO)1			706			617			14.4		%				1,411			1,300			8.5		%
Annualized FFO to Net Debt1			14.1		%	13.6		%	0.5		%				14.1		%	13.6		%	0.5		%
Capital investments			812			913			(11.1		%)				1,527			1,648			(7.3		%)
Assets placed in-service			644			591			9.0		%				1,128			1,014			11.2		%
Transmission: Average monthly Ontario 60-minute peak demand (MW)			20,936			20,836			0.5		%				21,141			21,008			0.6		%
Distribution: Electricity distributed to Hydro One customers (GWh)			7,550			7,231			4.4		%				17,235			16,555			4.1		%

As at			June 30, 2026			December 31, 2025
Net Debt to capitalization ratio1			59.9		%	59.5		%

1     See section “Non-GAAP Financial Measures”.

OVERVIEW

The Company's transmission business consists of the electricity transmission system operated by subsidiaries of Hydro One Inc. (a wholly-owned subsidiary of the Company), which include Hydro One Networks Inc. (Hydro One Networks), Hydro One Sault Ste. Marie LP (HOSSM), an approximate 66% interest in B2M Limited Partnership (B2M LP), an approximate 55% interest in Niagara Reinforcement Limited Partnership (NRLP), and an approximate 50% interest in Chatham x Lakeshore Limited Partnership (CLLP). The Transmission segment also includes Hydro One Networks’ approximate 40% (2025 - 48%) minority interest in the East-West Tie Limited Partnership (EWT LP) (see section “Other Developments - EWT LP”).

Hydro One’s distribution business consists of the electricity distribution system operated by Hydro One Inc.'s subsidiaries, Hydro One Networks and Hydro One Remote Communities Inc. (Hydro One Remotes).

1

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

The other segment consists primarily of Hydro One's subsidiary, Acronym Solutions Inc., which provides telecommunications support for the Company’s transmission and distribution businesses, as well as a comprehensive suite of Information Communication Technology solutions. The other segment also includes Aux Energy Inc., a wholly-owned subsidiary that provides energy solutions to commercial and industrial clients, and a wholly-owned subsidiary that owns and operates electric vehicle fast charging stations across Ontario under the Ivy Charging Network brand, as well as certain corporate activities, and is not rate-regulated.

For the six months ended June 30, 2026 and 2025, Hydro One's segments accounted for the Company's total revenues, as follows:

Six months ended June 30			2026			2025
Transmission			27		%	28		%
Distribution			72		%	71		%
Other			1		%	1		%

When adjusted for the recovery of purchased power costs, Hydro One’s segments accounted for the Company’s total revenues, net of purchased power,1 for the six months ended June 30, 2026 and 2025 as follows:

Six months ended June 30			2026			2025
Transmission			54		%	53		%
Distribution			45		%	46		%
Other			1		%	1		%

As at June 30, 2026 and December 31, 2025, Hydro One’s segments accounted for the Company’s total assets as follows:

As at			June 30, 2026			December 31, 2025
Transmission			60		%	60		%
Distribution			38		%	38		%
Other			2		%	2		%

RESULTS OF OPERATIONS

Net Income

Net income attributable to common shareholders of Hydro One for the quarter ended June 30, 2026 of $370 million is an increase of $43 million, or 13.1%, compared to the same period in 2025. Significant influences on the change in net income attributable to the common shareholders include:

•higher revenues, net of purchased power,1 primarily resulting from an increase in transmission and distribution revenues due to Ontario Energy Board (OEB)-approved 2026 rates, and higher average monthly peak demand.

•higher OM&A as a result of higher work program expenditures, including emergency power restoration and lines maintenance work.

•lower depreciation, amortization and asset removal costs primarily due to lower asset removal costs resulting from lower volume of storm restoration activities, partially offset by higher depreciation due to growth in capital assets.

•higher financing charges primarily due to an increase in outstanding long-term debt, partially offset by higher capitalized interest.

•higher income tax expense primarily resulting from higher pre-tax earnings, partially offset by higher deductible timing differences.

Net income attributable to common shareholders of Hydro One for the six months ended June 30, 2026 of $761 million is $76 million, or 11.1%, higher than the same period in 2025. Year-to-date results were impacted by similar factors as noted above, with the following exceptions:

•Depreciation, amortization and asset removal costs on a year-to-date basis were in-line with prior year; and

•Income tax expense on a year-to-date basis was lower than the prior year, primarily resulting from higher deductible timing differences than the prior year, partially offset by higher pre-tax earnings. Income tax expense on a year-to-date basis was higher than the prior year when adjusted for additional tax deductions from the re-introduction of accelerated capital cost allowance, that are offset by a corresponding reduction in revenue, and therefore net income neutral.

EPS

EPS was $0.62 and $1.27 for the three and six months ended June 30, 2026, respectively, compared to EPS of $0.54 and $1.14 in the same periods of 2025. The increase in EPS was primarily driven by higher earnings year-over-year, as discussed above.

1 See section “Non-GAAP Financial Measures”.

2

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

Revenues

			Three months ended June 30												Six months ended June 30
(millions of dollars, except as otherwise noted)			2026			2025			Change						2026			2025			Change
Transmission			667			622			7.2		%				1,331			1,258			5.8		%
Distribution			1,619			1,434			12.9		%				3,589			3,195			12.3		%
Other			16			10			60.0		%				30			21			42.9		%
Total revenues			2,302			2,066			11.4		%				4,950			4,474			10.6		%
Transmission			667			622			7.2		%				1,331			1,258			5.8		%
Distribution revenues, net of purchased power1			548			535			2.4		%				1,094			1,076			1.7		%
Other			16			10			60.0		%				30			21			42.9		%
Total revenues, net of purchased power1			1,231			1,167			5.5		%				2,455			2,355			4.2		%
Transmission: Average monthly Ontario 60-minute peak demand (MW)			20,936			20,836			0.5		%				21,141			21,008			0.6		%
Distribution: Electricity distributed to Hydro One customers (GWh)			7,550			7,231			4.4		%				17,235			16,555			4.1		%

1 See section “Non-GAAP Financial Measures”.

Transmission Revenues

Transmission revenues increased by 7.2% compared to the quarter ended June 30, 2025, primarily due to:

•higher revenues resulting from OEB-approved 2026 rates; and

•higher average monthly peak demand; partially offset by

•net income neutral items, mainly attributable to lower revenues associated with a regulatory tax adjustment related to re-introduction of accelerated capital cost allowance, which is offset in income tax expense.

Transmission revenues increased by 5.8% compared to the six months ended June 30, 2025, primarily due to similar factors noted above.

Distribution Revenues

Distribution revenues increased by 12.9% compared to the quarter ended June 30, 2025, primarily due to:

•higher purchased power costs, which are fully recovered from ratepayers and thus net income neutral;

•higher revenues resulting from OEB-approved 2026 rates; and

•higher energy consumption; partially offset by

•net income neutral items, mainly related to lower revenue from the recovery of 2025 storm-related costs incurred on behalf of third parties, and the OEB-approved recovery of regulatory assets in the prior period, which are offset in OM&A.

Distribution revenues increased by 12.3% compared to the six months ended June 30, 2025, primarily due to similar factors as noted above, as well as lower revenues associated with a regulatory tax adjustment related to re-introduction of accelerated capital cost allowance, which is offset in income tax expense and therefore net income neutral.

Distribution revenues, net of purchased power,2 increased by 2.4% and 1.7% compared to the three and six months ended June 30, 2025, primarily due to the reasons noted above.

OM&A Costs

			Three months ended June 30												Six months ended June 30
(millions of dollars, except as otherwise noted)			2026			2025			Change						2026			2025			Change
Transmission			135			129			4.7		%				268			258			3.9		%
Distribution			169			163			3.7		%				341			344			(0.9		%)
Other			27			28			(3.6		%)				51			50			2.0		%
			331			320			3.4		%				660			652			1.2		%

Transmission OM&A Costs

Transmission OM&A costs were 4.7% higher than the quarter ended June 30, 2025, primarily due to:

•higher corporate support costs; and

•higher spend on vegetation management; partially offset by

•a one-time reduction to the property tax provision.

2 See section “Non-GAAP Financial Measures”.

3

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

Transmission OM&A costs were 3.9% higher than the six months ended June 30, 2025, primarily due to similar factors to those noted above.

Distribution OM&A Costs

Distribution OM&A costs were 3.7% higher than the quarter ended June 30, 2025, primarily due to:

•higher work program expenditures, including emergency power restoration and lines maintenance work; and

•higher corporate support costs; partially offset by

•net income neutral items including costs related to a storm in the prior year that were recovered from third parties and OM&A associated with the OEB-approved recovery of cost deferrals in the prior year, both of which are offset in revenue.

Distribution OM&A costs were 0.9% lower than the six months ended June 30, 2025, primarily due to:

•net income neutral items including OM&A associated with the OEB-approved recovery of cost deferrals in the prior year, and costs related to a storm in the prior year that were recovered from third parties, both of which were offset in revenue; partially offset by

•higher work program expenditures, including emergency power restoration and lines maintenance work; and

•higher corporate support costs.

Depreciation, Amortization and Asset Removal Costs

Depreciation, amortization and asset removal costs decreased by $8 million for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to lower asset removal costs resulting from lower volume of storm restoration activities compared to the prior year, partially offset by higher depreciation expense attributed to the growth in capital assets as the Company continues to place new assets in-service.

Depreciation, amortization and asset removal costs of $553 million for the six months ended June 30, 2026, were in-line with the prior year.

Financing Charges

Financing charges increased by $12 million and $25 million for the three and six months ended June 30, 2026, respectively, primarily due to an increase in outstanding long-term debt, partially offset by higher capitalized interest.

Income Tax Expense

Income tax expense of $69 million for the three months ended June 30, 2026 compares to $61 million for the same period in 2025. The $8 million year-over-year increase was primarily due to:

•higher pre-tax earnings; partially offset by

•higher deductible timing differences than the prior year, including additional tax deductions from the re-introduction of accelerated capital cost allowance, that are offset by a corresponding reduction in revenue, and therefore net income neutral.

Income tax expense of $110 million for the six months ended June 30, 2026 compares to $129 million for the same period in 2025. The $19 million year-over-year decrease was primarily due to:

•higher deductible timing differences than the prior year, including additional tax deductions from the re-introduction of accelerated capital cost allowance, that are offset by a corresponding reduction in revenue, and therefore net income neutral; partially offset by

•higher pre-tax earnings.

The Company realized an effective tax rate (ETR) of approximately 15.6% and 12.5% for the three and six months ended June 30, 2026, respectively, compared to approximately 15.6% and 15.8% in the same periods of 2025. There was no change in the ETR for the three-month period, while the 3.3% decrease in the ETR for the six-month period was primarily attributable to the factors discussed above.

SHARE CAPITAL

The common shares of Hydro One are publicly traded on the Toronto Stock Exchange (TSX) under the trading symbol "H". Hydro One is authorized to issue an unlimited number of common shares. The amount and timing of any dividends payable by Hydro One is at the discretion of Hydro One's Board of Directors (Board) and is established on the basis of Hydro One’s results of operations, maintenance of its deemed regulatory capital structure, the Company’s financial condition and forecast cash requirements, the satisfaction of solvency tests imposed by corporate laws for the declaration and payment of dividends, and other factors that the Board may consider relevant. As at August 11, 2026, Hydro One had 600,096,134 issued and outstanding common shares.

4

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

The Company is authorized to issue an unlimited number of preferred shares, issuable in series. As at August 11, 2026, the Company had no preferred shares issued and outstanding.

The number of additional common shares of Hydro One that would be issued if all outstanding awards under the share grant plans and the Long-term Incentive Plan (LTIP) were vested and exercised as at August 11, 2026 was 1,236,448.

Common Share Dividends

In 2026, the Company declared and paid cash dividends to common shareholders as follows:

Date Declared

Record Date

Payment Date

Amount per Share

Total Amount (millions of dollars)

February 16, 2026

March 11, 2026

March 31, 2026

$0.3331

200

May 12, 2026

June 10, 2026

June 30, 2026

$0.3531

212

412

Following the conclusion of the second quarter of 2026, the Company declared a cash dividend to common shareholders as follows:

Date Declared

Record Date

Payment Date

Amount per Share

Total Amount (millions of dollars)

August 11, 2026

September 9, 2026

September 29, 2026

$0.3531

$211

QUARTERLY RESULTS OF OPERATIONS

Quarter ended (millions of dollars, except EPS and ratio)			Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Sep 30, 2024
Revenues			2,302			2,648			2,268			2,299			2,066			2,408			2,095			2,192
Purchased power			1,071			1,424			1,287			1,080			899			1,220			1,060			1,047
Revenues, net of purchased power1			1,231			1,224			981			1,219			1,167			1,188			1,035			1,145
Net income attributable to common shareholders			370			391			233			421			327			358			200			371
Basic EPS			$0.62			$0.65			$0.39			$0.70			$0.54			$0.60			$0.33			$0.62
Diluted EPS			$0.62			$0.65			$0.39			$0.70			$0.54			$0.60			$0.33			$0.62
Earnings coverage ratio1			2.8			2.8			2.8			2.8			2.8			2.8			2.8			2.8

1    See section “Non-GAAP Financial Measures”.

Variations in revenues and net income attributable to common shareholders over the quarters are primarily due to the impact of seasonal weather conditions on customer demand and market pricing, as well as timing of regulatory decisions.

CAPITAL INVESTMENTS

Capital investments represent additions to property, plant and equipment and intangible assets, including capitalized interest and overhead costs incurred during construction. Assets placed in-service represent completed capital assets that have been transferred into service and are available for their intended use during the period, and as applicable, included in the Company’s rate-regulated asset base. The Company makes capital investments to maintain the safety, reliability and integrity of its transmission and distribution system assets and to provide for the ongoing growth and modernization required to meet the expanding and evolving needs of its customers and the electricity market. This is achieved through a combination of sustaining capital investments, which are required to support the continued operation of Hydro One’s existing assets, and development capital investments, which involve additions to both existing assets and large-scale projects such as new transmission lines and transmission stations.

Assets Placed In-Service

The following table presents Hydro One’s assets placed in-service during the three and six months ended June 30, 2026 and 2025:

			Three months ended June 30												Six months ended June 30
(millions of dollars)			2026			2025			Change						2026			2025			Change
Transmission			364			147			147.6		%				624			334			86.8		%
Distribution			277			439			(36.9		%)				497			669			(25.7		%)
Other			3			5			(40.0		%)				7			11			(36.4		%)
Total assets placed in-service			644			591			9.0		%				1,128			1,014			11.2		%

5

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

Transmission Assets Placed In-Service

Transmission assets placed in-service increased by $217 million, or 147.6%, for the quarter ended June 30, 2026, compared to the same period in 2025, primarily due to:

•timing of assets placed in-service for station refurbishments and replacements; partially offset by

•investments placed in-service for the Orillia Distribution Warehouse in the prior year.

Transmission assets placed in-service increased by $290 million, or 86.8%, for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to similar factors noted above as well as investments placed in-service for high-voltage underground cable replacements; partially offset by the in-service of a customer connection project at the South Middle Road Transmission Station in the prior year.

Distribution Assets Placed In-Service

Distribution assets placed in-service decreased by $162 million, or 36.9%, for the quarter ended June 30, 2026, compared to the same period in 2025, primarily due to:

•lower volume of storm-related asset replacements;

•investments placed in-service for the Orillia Distribution Warehouse in the prior year; and

•timing of investments placed in-service for system capability reinforcement projects; partially offset by

•investments placed in-service for Ontario’s broadband initiative; and

•assets placed in-service for the Advanced Metering Infrastructure (AMI) 2.0 system.

Distribution assets placed in-service decreased by $172 million, or 25.7%, for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to similar factors noted above, as well as investments placed in-service for the Orillia Operation Centre in the prior year and, lower volume of wood pole replacements.

Capital Investments

The following table presents Hydro One’s capital investments during the three and six months ended June 30, 2026 and 2025:

			Three months ended June 30												Six months ended June 30
(millions of dollars)			2026			2025			Change						2026			2025			Change
Transmission
Sustaining			224			277			(19.1		%)				443			549			(19.3		%)
Development			241			192			25.5		%				404			370			9.2		%
Other			(18)			21			(185.7		%)				31			30			3.3		%
			447			490			(8.8		%)				878			949			(7.5		%)
Distribution
Sustaining			188			297			(36.7		%)				307			440			(30.2		%)
Development			160			101			58.4		%				286			196			45.9		%
Other			13			22			(40.9		%)				50			56			(10.7		%)
			361			420			(14.0		%)				643			692			(7.1		%)
Other			4			3			33.3		%				6			7			(14.3		%)
Total capital investments			812			913			(11.1		%)				1,527			1,648			(7.3		%)

Transmission Capital Investments

Transmission capital investments decreased by $43 million, or 8.8%, in the second quarter of 2026 compared to the second quarter of 2025, primarily due to:

•lower volume of station refurbishments and equipment replacements; and

•investments in the Waasigan Transmission Line, the St. Clair Transmission Line, and the Northeast Power Line Projects; partially offset by

•higher spend on other major development projects.

Transmission capital investments decreased by $71 million, or 7.5%, in the six months ended June 30, 2026, compared to the same period in 2025, primarily due to similar factors noted above.

Distribution Capital Investments

Distribution capital investments decreased by $59 million, or 14.0%, in the second quarter of 2026 compared to the second quarter of 2025, primarily due to:

•lower spend on storm-related asset replacements; partially offset by

•investments in Ontario’s broadband initiative; and

•investments in the AMI 2.0 system.

6

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

Distribution capital investments decreased by $49 million, or 7.1%, in the six months ended June 30, 2026, compared to the same period in 2025, primarily due to similar factors noted above as well as lower volume of wood pole replacements.

Major Transmission Capital Investment Projects

The following tables summarize the status of significant transmission projects as at June 30, 2026:

Development Projects

Project Name

Location

Type

Anticipated In-Service Date

Estimated Cost1

Capital Cost To Date

(year)

(millions of dollars)

Waasigan Transmission Line2

Thunder Bay-Atikokan-Dryden   Northwestern Ontario

New transmission line and   station expansion

2027

1,140

661

St. Clair Transmission Line

Southwestern Ontario

New transmission line and   station expansion

2027

435

288

Centennial Transmission Station3

Southwestern Ontario

New transmission station and   connection; and new transmission line

2027

403

244

Holt Transmission Station

Bowmanville Central Ontario

New transmission station and   connection

2027

137

47

Keith Intertie Upgrade

Windsor    Southwestern Ontario

Transmission station upgrade

2028

109

11

Northeast Power Line

Northeastern Ontario

New transmission line and   station expansion

2029

1,855

44

Durham Kawartha Power Line

Eastern Ontario

New transmission line and   station expansion

2029

433

45

Welland Thorold Power Line

Niagara    Southern Ontario

New transmission line and   station expansion

2029

311

34

Orléans Area Reinforcement

Ottawa    Eastern Ontario

Transmission line upgrade

2029

101

11

Longwood to Lakeshore Transmission Line

Southwestern Ontario

New transmission line and   station expansion

2030

1,166

75

North Shore Link4

Northeastern Ontario

New transmission line and   station expansion

TBD

TBD

31

Wawa Timmins Power Line4

Northeastern Ontario

New transmission line and   station expansion

TBD

TBD

16

Windsor Lakeshore      Transmission Line5

Southwestern Ontario

New transmission line and   station expansion

TBD

TBD

6

Sudbury Barrie     Transmission Line6

Northern-Central Ontario

New transmission line and   station expansion

TBD

TBD

5

Second Longwood to Lakeshore Transmission Line5

Southwestern Ontario

New transmission line and   station expansion

TBD

TBD

3

Bowmanville to East Greater    Toronto Area Power Line7

Southern Ontario

New transmission line and   station expansion

TBD

TBD

2

Greenstone Transmission Line

Northwestern Ontario

New transmission line and   station expansion

TBD

TBD

2

Waterloo Wellington Power Line8

Southwestern Ontario

New transmission line and new transmission station

TBD

TBD

1

Red Lake Transmission Line9

Northwestern Ontario

New transmission line and station expansion

TBD

TBD

1

1 Estimated costs are presented gross of any potential contribution from external parties.

2 The Waasigan Transmission Line Project includes construction of new transmission lines as well as station enhancements to support energization of the new lines. The estimated cost relates to the development and construction phases of the project and the anticipated in-service date reflects anticipated completion in 2027. The first phase of the project is anticipated to be in-serviced in 2026.

3 This Project consists of two phases, which includes the construction of a transmission station and a transmission line to meet the needs of, and is anticipated to be largely funded by, an industrial customer. Phase 1 of the Centennial Transmission Station Project includes a new transmission station in St. Thomas and an approximately 2 km, 230 kV double-circuit transmission line between the new transmission station and an existing transmission station in the city. Phase 1 of the project is anticipated to be in service by the end of 2026. The second phase, an approximately 20 km, 230 kV double-circuit transmission line from London to St. Thomas, is anticipated to be in service by the end of 2027.

4 The capital cost to date relates to costs incurred in the development phase of the project. The scope and timing of these Northeastern transmission reinforcements are currently under review. The Independent Electricity System Operator (IESO) has recommended a target in-service date of 2030 for the Wawa Timmins Power Line, and of 2029 for the North Shore Link transmission project.

5 The capital cost to date relates to costs incurred in the development phase of the projects. The scope and timing of these Southwestern Ontario transmission reinforcement projects are currently under review. The IESO has recommended a target in-service date by 2032 for the Windsor Lakeshore Transmission Line.

6 Pertains to the First Sudbury Barrie Transmission Line. The scope and timing of the line is currently under review. The IESO has recommended a target in-service date by 2032.

7 The Bowmanville to East Greater Toronto Area Power Line was previously referred to as the Bowmanville to Parkway Transmission Line.

8 The IESO has recommended a target in-service date of 2031 for the Waterloo Wellington Power Line and the Wellington Transmission Station in the Township of Puslinch. The Waterloo Wellington Power Line was previously referred to as the Wellington to Preston Transmission Line.

9 The project comprises a double-circuit 230 kV transmission line that runs from Dryden Transformer Station to Ear Falls, continuing to Red Lake Switching Station, with associated station work at Dryden Transformer Station and Ear Falls Transformer Station.

7

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

Sustainment Projects

Project Name			Location			Type			Anticipated In-Service Date			Estimated Cost1			Capital Cost To Date
									(year)			(millions of dollars)
Middleport Transmission Station      Circuit Breaker Replacement2			Middleport   Southwestern Ontario			Station sustainment			2026			184			173
Lennox Transmission Station      Circuit Breaker Replacement2			Napanee   Southeastern Ontario			Station sustainment			2026			160			155
Esplanade x Terauley      Underground Cable Replacement			Toronto   Southern Ontario			Line sustainment			2026			117			103
Bridgman Transmission Station      Refurbishment			Toronto   Southern Ontario			Station sustainment			2026			108			96
Bruce A Transmission Station      Switchyard Replacement			Tiverton   Southwestern Ontario			Station sustainment			2027			555			447
Otto Holden Transmission Station      Refurbishment			Mattawa   Northeast Ontario			Station sustainment			2028			128			91
Merivale Transmission Station      Replacement and Upgrades3			Ottawa   Eastern Ontario			Station sustainment and   upgrade			2029			271			216
Synchronous Optical Network      Telecommunication Replacement			Ontario			Telecommunication sustainment			2029			137			21
Essa Transmission Station Circuit       Breaker Replacement			Barrie   Central Ontario			Station sustainment			2030			116			19

1 Estimated costs are presented gross of any potential contribution from external parties.

2 The Middleport Transmission Station Circuit Breaker Replacement and the Lennox Transmission Station Circuit Breaker Replacement Projects were completed in Q2 2026.

3 The coordinated project includes both an asset replacement and station expansion. The anticipated in-service dates are between 2026 to 2029.

8

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

Future Capital Investments

The Company estimates future capital investments based on management’s expectations of the amount of capital expenditures that will be required to provide transmission and distribution services that are efficient, reliable, and provide value for customers, consistent with the OEB’s Renewed Regulatory Framework. The Company includes projects when there is a high degree of confidence that the project will go forward and when there is a thorough estimate of the expected expenditures.

On August 28, 2025, the Company submitted a Z-Factor application which sought recovery of the incremental revenue requirement associated with $223 million of storm-related costs, including capital and asset removal costs, incurred for a severe storm that began on March 28, 2025. On April 7, 2026, the OEB issued its Decision and Order for the Z-Factor application, denying the recovery of $69 million in incremental revenue requirement.

The 2026 and 2027 capital estimates have been updated during the three months ended June 30, 2026 to reflect the estimated costs of the Northeast Power Line and the Longwood to Lakeshore Transmission Line projects filed with the OEB on May 19, 2026 through leave-to-construct applications, as well as the Durham Kawartha Power Line project filed with the OEB on June 12, 2026 through a leave-to-construct application (see section “Other Developments” for further details).

The Company had updated its plan in the first quarter, for required Broadband investments, consistent with the detailed construction schedule submitted to the Province.

The following tables summarize Hydro One’s annual projected capital investments for 2026 and 2027 by business segment and by category:

By business segment: (millions of dollars)															2026			2027
Transmission1															2,432			3,333
Distribution															1,383			1,377
Other															39			32
Total capital investments2															3,854			4,742

By category: (millions of dollars)															2026			2027
Sustainment															1,426			1,064
Development1															2,263			3,526
Other3															165			152
Total capital investments2															3,854			4,742

1 Figures include investments in certain development projects of Hydro One Networks not included in the investment plan approved by the OEB in the Joint Rate Application (JRAP) decision in 2022.

2 Since the first quarter of 2022, the Minister of Energy and Mines (formerly the Minister of Energy) (Minister) has directed the OEB to amend Hydro One Networks’ transmission licence to require it to develop and seek approvals for twelve priority transmission lines in Ontario. The future capital investments presented do not include capital expenditures, nor development costs, associated with the following two priority Southwestern Ontario transmission line projects: Second Longwood to Lakeshore Transmission Line and Windsor Lakeshore Transmission Line; nor the following two priority Northeastern and Eastern Ontario transmission line projects: North Shore Link and Wawa Timmins Power Line; nor the Bowmanville to East Greater Toronto Area Power Line, Greenstone, Sudbury Barrie, and the Red Lake Transmission Lines. Hydro One is currently evaluating the scope and timing of these eight lines.

3 “Other” capital expenditures include investments in fleet, real estate, IT, and operations technology and related functions.

SUMMARY OF SOURCES AND USES OF CASH

Hydro One’s primary sources of cash flows are funds generated from operations, capital market debt issuances and bank credit facilities that are used to satisfy Hydro One’s capital resource requirements, including the Company’s capital expenditures, servicing and repayment of debt, and dividend payments.

			Three months ended June 30									Six months ended June 30
(millions of dollars)			2026			2025						2026			2025
Net cash from operating activities			686			605						1,080			1,115
Net cash from financing activities			648			170						469			37
Net cash used in investing activities			(728)			(827)						(1,455)			(1,797)
Net change in cash and cash equivalents			606			(52)						94			(645)

9

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

Net cash from operating activities

Net cash from operating activities increased by $81 million for the three months ended June 30, 2026, compared to the same period in 2025. The increase was mainly attributable to:

•higher pre-tax earnings; and

•changes in regulatory account balances; partially offset by

•changes in net working capital primarily attributable to timing differences in the settlement of receivables and payables, and lower cost of power payable to the IESO driven by lower purchased volumes, partially offset by higher accrued liabilities, and higher unearned revenue related to capital contributions.

Net cash from operating activities decreased by $35 million for the six months ended June 30, 2026, compared to the same period in 2025. The decrease was mainly attributable to:

•changes in net working capital primarily attributable to lower accrued liabilities, lower cost of power payable to the IESO driven by lower purchased volumes, and timing differences in the settlement of payables, partially offset by timing differences in the settlement of receivables, and higher unearned revenue related to capital contributions; and

•changes in regulatory account balances; partially offset by

•higher pre-tax earnings.

Net cash from financing activities

Net cash from financing activities increased by $478 million and $432 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. This was impacted by various factors, including the following:

Sources of cash

•the Company issued $1,373 million of long-term debt in the three and six months ended June 30, 2026, compared to $nil issued in the same periods last year.

•the Company received proceeds of $925 million and $1,725 million from the issuance of short-term notes in the three and six month periods ended June 30, 2026, respectively, compared to $2,065 million and $3,140 million received in the same periods last year.

Uses of cash

•the Company repaid $1,425 million and $1,725 million of short-term notes in the three and six month periods ended June 30, 2026, respectively, compared to $1,350 million and $1,965 million repaid in the same periods last year.

•the Company repaid $nil and $500 million of long-term debt in the three and six month periods ended June 30, 2026, respectively, compared to $350 million and $750 million paid in the same periods last year.

•common share dividends paid in the three and six month periods ended June 30, 2026 were $212 million and $412 million, respectively, compared to dividends of $200 million and $388 million paid in the same periods last year.

Net cash used in investing activities

Net cash used in investing activities decreased by $99 million and $342 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The decrease in the second quarter was primarily due to lower capital expenditures, partially offset by higher additions to future use assets. The year-to-date decrease was primarily due to similar factors noted above as well as the investment in EWT LP (see section “Other Developments - EWT LP”) in the prior year.

LIQUIDITY AND FINANCING STRATEGY

Short-term liquidity is provided through FFO,3 Hydro One Inc.’s commercial paper program, and the Company’s consolidated bank credit facilities. Under the commercial paper program, Hydro One Inc. is authorized to issue up to $2,300 million in short-term notes with a term to maturity of up to 365 days.

As at June 30, 2026, Hydro One Inc. had $100 million in commercial paper borrowings outstanding, compared to $100 million outstanding at December 31, 2025. The Company also has committed, unsecured, and revolving credit facilities (Operating Credit Facilities) with a total available balance of $3,900 million as at June 30, 2026. The Operating Credit Facilities include a pricing adjustment which can increase or decrease Hydro One’s cost of borrowing based on its performance on certain sustainability performance measures, which are related to Hydro One's sustainability goals. On June 1, 2026, Hydro One Inc. increased the committed amount under the Operating Credit Facilities by $600 million and extended the maturity date of the Operating Credit Facilities from 2030 to 2031. No amounts were drawn on the Operating Credit Facilities as at June 30, 2026 or December 31, 2025. The Company may use the Operating Credit Facilities for working capital and general corporate purposes. The short-term liquidity under the commercial paper program, the Operating Credit Facilities, available cash on hand and anticipated levels of FFO3 are expected to be sufficient to fund the Company’s operating requirements.

3 See section “Non-GAAP Financial Measures”.

10

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

As at June 30, 2026, the Company had long-term debt outstanding in the principal amount of $19,965 million, which included $425 million of long-term debt issued by Hydro One and $19,540 million of long-term debt issued by Hydro One Inc. The majority of long-term debt issued by Hydro One Inc. has been issued under its Medium-Term Note (MTN) Program. The Company's total long-term debt consists of notes and debentures that mature between 2026 and 2064, and as at June 30, 2026 had a weighted-average term to maturity of approximately 13.0 years (December 31, 2025 - 13.7 years) and a weighted-average coupon rate of 4.2% (December 31, 2025 - 4.2%).

In March 2026, Hydro One Inc. filed a short form base shelf prospectus in connection with its MTN Program, which expires in April 2029.

On August 19, 2024, Hydro One filed a short form base shelf prospectus (Universal Base Shelf Prospectus) with securities regulatory authorities in Canada. The Universal Base Shelf Prospectus allows Hydro One to offer, from time to time in one or more public offerings, debt, equity or other securities, or any combination thereof, during the 25-month period ending in September 2026. As at June 30, 2026, no securities have been issued under the Universal Base Shelf Prospectus. A new Universal Base Shelf Prospectus is expected to be filed in the third quarter of 2026.

On November 29, 2024, Hydro One Holdings Limited (HOHL) filed a short form base shelf prospectus (HOHL U.S. Debt Shelf Prospectus) with securities regulatory authorities in Ontario and the U.S., that expires in December 2026. The HOHL U.S. Debt Shelf Prospectus allows HOHL to offer, from time to time in one or more public offerings, debt securities, unconditionally guaranteed by Hydro One. As at June 30, 2026, no securities have been issued under the HOHL U.S. Debt Shelf Prospectus.

On August 18, 2025, Hydro One Inc. filed a short form base shelf prospectus (HOI U.S. Debt Shelf Prospectus) with securities regulatory authorities in Ontario and the U.S. The HOI U.S. Debt Shelf Prospectus allows Hydro One Inc. to offer, from time to time in one or more public offerings, U.S. debt securities, during the 25-month period ending on September 18, 2027. As at June 30, 2026, US$1,000 million senior notes have been issued under the HOI U.S. Debt Shelf Prospectus (2025 - US$nil). To mitigate the foreign currency risk due to exchange rate fluctuations between the U.S. dollar and the Canadian dollar, the Company entered into a series of cross-currency swap agreements, to convert U.S. dollar-denominated principal and interest cash flows into fixed Canadian dollar-denominated cash flows.

Compliance

As at June 30, 2026, the Company was in compliance with all financial covenants and limitations associated with the outstanding borrowings and credit facilities.

OTHER OBLIGATIONS

Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on the Company’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

11

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

Summary of Contractual Obligations and Other Commercial Commitments

The following table presents a summary of Hydro One’s debt and other major contractual obligations and commercial commitments:

As at June 30, 2026 (millions of dollars)			Total			Less than 1 year			1-3 years			3-5 years			More than 5 years
Contractual obligations (due by year)
Long-term debt - principal repayments			19,965			425			1,725			3,170			14,645
Long-term debt - interest payments			11,307			832			1,610			1,466			7,399
Short-term notes payable			100			100			—			—			—
Pension contributions1			559			75			160			179			145
Outsourcing and other agreements			128			51			58			2			17
Environmental and asset retirement obligations			101			12			5			4			80
Lease obligations			75			15			21			10			29
Total contractual obligations			32,235			1,510			3,579			4,831			22,315
Other commercial commitments (by year of expiry)
Operating Credit Facilities			3,900			—			—			3,900			—
Letters of credit2			175			175			—			—			—
Guarantees3			535			535			—			—			—
Total other commercial commitments			4,610			710			—			3,900			—

1 Contributions to the Hydro One Pension Plan are based on actuarial reports, including valuations performed at least every three years, and actual or projected levels of pensionable earnings, as applicable. The most recent actuarial valuation was performed effective December 31, 2024 and filed on September 23, 2025.

2 Letters of credit consist of $166 million letters of credit related to retirement compensation arrangements, a $2 million letter of credit provided to the IESO for prudential support, and $7 million in letters of credit for various operating purposes.

3 Guarantees consist of $475 million prudential support provided to the IESO by Hydro One Inc. on behalf of its subsidiaries, as well as $60 million of guarantees provided by Hydro One to ONroute relating to OCN LP (OCN Guarantee).

REGULATION

Ontario Integrated Energy Plan

On June 12, 2025, the Ontario government released its first integrated energy plan (IEP), Energy for Generations, which aims to leverage electricity, natural gas, hydrogen, storage and other energy sources to provide Ontario with affordable, secure, reliable and clean energy to power growth and jobs across the province. The IEP establishes a planning horizon out to 2050, including the acceleration of the development of transmission infrastructure and the modernization of the distribution grid. As part of the IEP, the government announced the advancement of several transmission projects, including those aimed to enhance transmission capacity between Northern and Southern Ontario, east of Toronto, in Southwestern Ontario and in Northern Ontario.

The IEP also addressed the need for additional transmission capacity in the Red Lake Area in Northwestern Ontario. In August 2025, the IESO released the Northwest Region Integrated Regional Resource Plan Addendum (Addendum). The Addendum recommends the urgent development of the Red Lake Transmission Line, a double-circuit 230 kV transmission line that will run from Dryden Transformer Station to Ear Falls Transformer Station, and another double-circuit 230 kV transmission line that will run from Ear Falls Transformer Station to Red Lake Switching Station, along with associated station facilities, to meet growing capacity needs after 2028. The project is expected to be in service by the early 2030s. On October 29, 2025, the Ministry of Energy and Mines (Ministry) announced a proposal to bring forward an Order in Council (to be recommended by the Minister) to declare the projects as priority and a companion directive, that would, if approved, direct the OEB to amend Hydro One Networks’ transmitter licence to require it to undertake development work and seek all necessary approvals to construct the projects. The consultation period for the proposal closed on December 13, 2025.

On April 23, 2026 the Minister notified the OEB that the two lines were declared priority projects, and issued a directive to the OEB to amend Hydro One Networks’ transmission license, to require it to develop and seek approvals for the projects. On April 28, 2026, further to the Minister’s Directive, the OEB amended Hydro One Networks’ electricity transmission license to allow it to develop and seek approvals for the projects in accordance with the recommendations of the IESO.

IESO’s Transmitter Selection Framework

On July 31, 2025, the IESO announced the launch of the Transmitter Selection Framework (TSF) Registry. Registration enables transmitters to participate in future competitive IESO transmission procurements. Hydro One submitted an application to be included in the TSF Registry. On May 20, 2026, Hydro One was approved as a TSF Registrant by the IESO.

Next Generation Rate Framework Consultation

On January 8, 2026, the OEB announced a new policy consultation to develop an updated rate-setting framework for electricity distributors. The consultation will bring together existing OEB consultations under a new comprehensive policy consultation

12

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

known as the Next Generation Rate Framework (Framework) consultation. The OEB plans to build on the Renewed Regulatory Framework that was established in 2012, given the significant changes in the energy and policy landscape. The OEB consulted on the scope of the review in January and February 2026, including reviewing all aspects of its current ratemaking policies to ensure that they continue to facilitate the cost-effective and efficient implementation of the government's policy objectives.

Building Broadband Faster Act, 2021

A regulation regarding electricity infrastructure and designated broadband projects under the Ontario Energy Board Act, 1998 (OEBA) (O.Reg. 410/22) came into force on April 21, 2022, and on March 28, 2023, the Province amended the OEBA (O.Reg. 410/22) with respect to performance timelines associated with designated broadband projects.

On October 31, 2024, the Ministry of Infrastructure (MOI) announced that it has developed a program to deliver up to $400 million in subsidies to internet service providers (ISPs) for work associated with designated broadband projects. The program is intended to enable ISPs to successfully and safely attach their material and equipment to the Company’s poles to bring connectivity to rural communities as part of a designated broadband project. A portion of the subsidies will be used to reimburse Hydro One Networks on behalf of ISPs for their share of enablement costs incurred to facilitate the program to date (see section “Related Party Transactions”). On April 27, 2026, the Ministry increased the maximum subsidies to $482 million.

OTHER DEVELOPMENTS

EWT LP

On March 4, 2025, Hydro One Networks completed the acquisition of an approximate 48% interest in the EWT LP for approximately $261 million in cash, including closing adjustments. The partnership owns the East-West Tie Line, a 450-kilometre, 230-kV double-circuit transmission line spanning between Wawa and Thunder Bay, along the north shore of Lake Superior. In February 2026, Bamkushwada Limited Partnership, a group of First Nation Partners, exercised its right to acquire additional interest in EWT LP. Following the transaction, Hydro One’s ownership in EWT LP was diluted to 40%.

Supporting Critical Transmission Infrastructure in Southwestern Ontario

On March 31, 2022, the Minister (formerly the Minister of Energy) directed the OEB to amend Hydro One Networks' licence to require it to develop and seek approvals for four priority transmission line projects to meet growing electricity demand in Southwestern Ontario, including the Longwood to Lakeshore Transmission Line. On April 7, 2022, further to the Minister’s Directive, the OEB amended Hydro One Networks’ electricity transmission licence to require it to develop and seek approvals for the projects in accordance with the recommendations of the IESO.

On May 19, 2026, Hydro One Networks filed a leave-to-construct application seeking OEB approval for the Longwood to Lakeshore Transmission Line, a single-circuit 500 kV transmission line between the Longwood Transformer Station in the Municipality of Strathroy-Caradoc and the Lakeshore Transformer Station in the Municipality of Lakeshore.

Supporting Critical Transmission Infrastructure in Northwestern Ontario

On April 16, 2024, the OEB issued its Decision and Order granting Hydro One Networks leave to construct the Waasigan Transmission Line Project, with standard conditions of approval.

On March 20, 2026, Waasigan Transmission Limited Partnership (WTLP) was formed to own and operate the transmission line, and Waasigan Transmission GP Inc. (WTGP) was formed as the General Partner of WTLP. On July 20, 2026, Hydro One Networks, on behalf of WTGP, requested certain approvals from the OEB, including obtaining an electricity transmission licence for WTGP, as a general partner on behalf of WTLP, and approval for Hydro One Networks to sell assets related to the Waasigan Transmission Line Project to WTGP, as a general partner on behalf of WTLP.

Supporting Critical Transmission Infrastructure in Northeastern and Eastern Ontario

On July 10, 2023, the Ministry announced a proposal to take certain actions to facilitate the timely development of three priority transmission line projects across Northeastern and Eastern Ontario, including the Northeast Power Line and the Durham Kawartha Power Line. On October 23, 2023, the Minister (formerly the Minister of Energy) directed the OEB to amend Hydro One Networks’ licence to require it to develop and seek approvals for the three projects. On November 14, 2023, further to the Minister’s Directive, the OEB amended Hydro One Networks’ electricity transmission licence to require it to develop and seek approvals for the projects in accordance with the recommendations of the IESO.

On May 19, 2026, Hydro One Networks filed a leave-to-construct application seeking the OEB’s approval for the Northeast Power Line, a single-circuit 500 kV transmission line between Hanmer Transformer Station in the Greater Sudbury Area, and the Mississagi Transformer Station, near Wharncliffe. On June 12, 2026, Hydro One Networks filed a leave-to-construct application seeking the OEB’s approval for the Durham Kawartha Power Line, a new double-circuit, 230 kV transmission line between Clarington Transformer Station in the Municipality of Clarington, and Dobbin Transformer Station in Peterborough County.

13

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

Orléans Area Reinforcement Project

The IESO-led regional planning process for the Greater Ottawa Region identified growing electricity demand in the Orléans area. In 2022, the Greater Ottawa Regional Planning Technical Working Group recommended that additional electricity supply be provided to meet forecast load growth, including a new 230 kV supply from Hawthorne Transformer Station to Orléans Transformer Station. On May 29, 2026, Hydro One Networks Inc. filed a leave-to-construct application seeking the OEB’s approval for the Orléans Area Reinforcement Project consistent with the regional planning recommendations. The Project includes the construction of a new 115 kV transmission line within an existing transmission corridor between Hawthorne Transformer Station and Orléans Transformer Station, located in the Greater Ottawa Area. The project also includes converting an existing 115 kV transmission line between the two stations to a standard 230 kV transmission line. See section "Major Transmission Capital Investment Projects” for additional information.

Collective Agreements

On March 23, 2026, Hydro One and the Canadian Union of Skilled Workers (CUSW) commenced collective bargaining. The prior Hydro One - CUSW collective agreement expired on April 30, 2026. On April 24, 2026, Hydro One and CUSW reached a tentative agreement for a renewal collective agreement. On June 11, 2026, the agreement was ratified by the CUSW-represented employees for a term from May 1, 2026, to April 30, 2030.

Bill C-15, Budget 2025 Implementation Act, No.1

On March 26, 2026, Bill C‑15, An Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025, received Royal Assent.

Impact

Federal budget measures enacted as part of Bill C-15 included time-limited investment incentives permitting Hydro One to claim enhanced capital cost allowance of up to three times the first-year rate for eligible capital investments acquired after 2024 and placed in-service before 2034. The re-introduction of accelerated capital cost allowance temporarily reduces the Company’s ETR and results in the recognition of a tax regulatory liability for the amounts that have not been reflected in OEB‑approved rates.

Estimated ETR Change

The re‑introduction of accelerated capital cost allowance is expected to lower the Company’s ETR to a range of approximately 11% to 15% during the current rate period (until 2027).

HYDRO ONE BOARD OF DIRECTORS AND EXECUTIVE OFFICERS

Board of Directors

Effective February 19, 2026, Debbie (Deb) Hutton was appointed to the Board.

Effective June 9, 2026, Perrin Beatty was elected to the Board.

Directors Helga Reidel and Mitch Panciuk did not stand for re-election at the Annual Meeting of Shareholders on June 9, 2026.

Executive Officers

Effective June 9, 2026, David Lebeter retired from his role as President and Chief Executive Officer (CEO). Effective the same day, Megan Telford was appointed as President and CEO. David Lebeter will remain with Hydro One as a Special Advisor until October 10, 2026.

NON-GAAP FINANCIAL MEASURES

Hydro One uses a number of non-GAAP financial measures to assess its performance. The Company presents FFO or “funds from operations” to reflect a measure of the Company’s cash flow; revenues, net of purchased power, to reflect the impact of revenue on net income; and net debt to reflect a measure of the Company’s financial leverage.

Hydro One also uses financial ratios that are non-GAAP ratios such as the net debt to capitalization ratio and annualized FFO to net debt ratio to reflect a measure of the Company’s financial leverage, and the earnings coverage ratio to reflect a measure of liquidity.

14

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

FFO

FFO is defined as net cash from operating activities, adjusted for changes in non-cash balances related to operations and distributions to noncontrolling interest. Management believes that FFO is helpful as a supplemental measure of the Company’s operating cash flows as it excludes timing-related fluctuations in non-cash operating working capital and cash flows not attributable to common shareholders. As such, management believes that FFO provides a consistent measure of the cash generating performance of the Company’s assets.

The following table provides a reconciliation of reported GAAP results to non-GAAP results on a consolidated basis.

									Three months ended June 30									Six months ended June 30
(millions of dollars)						2026			2025						2026			2025
Net cash from operating activities									686			605						1,080			1,115
Changes in non-cash balances related to operations									23			14						337			192
Distributions to noncontrolling interest									(3)			(2)						(6)			(7)
FFO									706			617						1,411			1,300

Revenues, Net of Purchased Power

Revenues, net of purchased power, is defined as revenues less the cost of purchased power; distribution revenues, net of purchased power, is defined as distribution revenues less the cost of purchased power. These measures are used internally by management to assess the impacts of revenue on net income and are considered useful because they exclude the cost of power that is fully recovered through revenues and therefore net income neutral.

The following tables provide a reconciliation of reported GAAP revenues to non-GAAP revenues, net of purchased power, on a consolidated basis.

Quarter ended (millions of dollars)			Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Sep 30, 2024
Revenues			2,302			2,648			2,268			2,299			2,066			2,408			2,095			2,192
Less: Purchased power			1,071			1,424			1,287			1,080			899			1,220			1,060			1,047
Revenues, net of purchased power			1,231			1,224			981			1,219			1,167			1,188			1,035			1,145

Quarter ended (millions of dollars)			Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Sep 30, 2024
Distribution revenues			1,619			1,970			1,757			1,605			1,434			1,761			1,583			1,551
Less: Purchased power			1,071			1,424			1,287			1,080			899			1,220			1,060			1,047
Distribution revenues, net of purchased power			548			546			470			525			535			541			523			504

Net Debt

The Company uses net debt as an alternative measure of outstanding debt. Management considers net debt as an important measure in assessing the financial leverage of the Company. Net debt is used by management to assess the Company’s overall debt position and financial leverage.

The following table provides a reconciliation of net debt as reported in the Company’s Consolidated Financial Statements.

As at (millions of dollars)									Jun 30, 2026			Dec 31, 2025
Short-term notes payable									100			100
Less: cash and cash equivalents									(643)			(549)
Long-term debt (current portion)									425			925
Long-term debt (long-term portion)									19,503			18,092
Net Debt									19,385			18,568

Net Debt to Capitalization Ratio

The Company believes that the net debt to capitalization ratio is an important non-GAAP ratio as a measure of the Company’s financial leverage. Net debt to capitalization ratio has been calculated as net debt, as described above, divided by net debt plus total shareholders’ equity, but excluding any amounts related to noncontrolling interest. Management believes that the net debt to capitalization ratio is helpful as a measure of the proportion of debt in the Company's capital structure.

As at (millions of dollars)									Jun 30, 2026			Dec 31, 2025
Net debt (A)									19,385			18,568
Shareholders' equity (excluding noncontrolling interest)									12,995			12,648
Net debt plus shareholders' equity (B)									32,380			31,216

Net Debt to capitalization ratio (A/B) 59.9 % 59.5 %

15

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

Annualized FFO to Net Debt

Management believes that the annualized FFO to net debt ratio is helpful as a measure of the Company’s financial leverage. Annualized FFO to net debt ratio has been calculated as FFO (see section “Non-GAAP Financial Measures - FFO”) on a rolling twelve-month period divided by net debt at the period end date (see section “Non-GAAP Financial Measures – Net Debt”). Management believes the annualized FFO to net debt ratio is helpful as a measure of the company’s ability to pay off its debt using the Company’s net operating income.

The following table provides a reconciliation of reported GAAP results to non-GAAP results on a consolidated basis.

Twelve months and period ended (millions of dollars)			Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Sep 30, 2024
Annualized FFO (A)			2,741			2,652			2,630			2,489			2,450			2,356			2,275			2,238
Net Debt (B)			19,385			19,080			18,568			18,346			18,030			17,615			16,963			16,679

Annualized FFO to Net Debt (A/B) 14.1 % 13.9 % 14.2 % 13.6 % 13.6 % 13.4 % 13.4 % 13.4 %

Earnings Coverage Ratio

Earnings coverage ratio is defined as earnings before income taxes, financing charges and equity income (loss) attributable to shareholders, divided by the sum of financing charges and capitalized interest, and is calculated on a rolling twelve-month basis. The Company believes that the earnings coverage ratio is an important non-GAAP measure in the management of its liquidity.

Quarter ended (millions of dollars)			Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Sep 30, 2024
Net income attributable to common shareholders			370			391			233			421			327			358			200			371
Income tax expense			69			41			30			60			61			68			17			56
Financing charges			181			176			175			172			169			163			158			158
Equity income (loss)			4			(11)			3			6			—			—			—			—
Earnings before income taxes, financing charges and equity income (loss) attributable to common shareholders			616			619			435			647			557			589			375			585

Twelve months ended (millions of dollars)

Jun 30, 2026

Dec 31, 2025

Earnings before income taxes, financing charges and equity income (loss) attributable to common shareholders (A)

2,317

2,228

Quarter ended (millions of dollars)			Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Sep 30, 2024
Financing charges			181			176			175			172			169			163			158			158
Capitalized interest			31			29			29			30			27			24			24			24
Financing charges and capitalized interest			212			205			204			202			196			187			182			182

Twelve months ended (millions of dollars)			Jun 30, 2026			Dec 31, 2025
Financing charges and capitalized interest (B)			823			789
Earnings coverage ratio = A/B			2.8			2.8

16

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

RELATED PARTY TRANSACTIONS

The Province is a shareholder of Hydro One with approximately 47.1% ownership as at June 30, 2026. The Ministry and MOI are related parties to Hydro One because they are controlled by the Province. The IESO, Ontario Power Generation Inc. (OPG), Ontario Electricity Financial Corporation (OEFC), and the OEB are related parties to Hydro One because they are controlled or significantly influenced by the Ministry. Hydro One also has transactions in the normal course of business with various government ministries and organizations in Ontario that fall under the purview of the Province. The following is a summary of the Company’s related party transactions during the three and six months ended June 30, 2026 and 2025:

(millions of dollars)						Three months ended June 30						Six months ended June 30
Related Party			Transaction			2026			2025			2026			2025
Province			Dividends paid			100			94			194			182
Ministry			Broadband subsidy1,2			17			—			27			—
MOI			Broadband subsidy1,2			—			6			—			19
IESO			Power purchased			625			456			1,754			1,374
			Revenues for transmission services			660			613			1,319			1,234
			Amounts related to electricity rebates			376			233			826			508
			Distribution revenues related to rural rate protection			64			64			127			127
			Distribution revenues related to Wataynikaneyap Power LP			25			33			50			66
			Distribution revenues related to supply of electricity to remote northern communities			13			13			26			25
			Funding received related to Conservation and Demand Management programs			—			—			1			—
OPG			Power purchased			3			3			20			14
			Transmission revenues related to provision of services and supply of electricity			1			—			1			1
			Distribution revenues related to provision of services and supply of electricity			1			1			4			4
			Other revenues related to provision of services and supply of electricity			—			1			1			1
			Capital contribution received from OPG			5			6			7			16
			Costs related to the purchase of services			—			1			—			1
OEFC			Power purchased from power contracts administered by the OEFC			—			—			2			1
OEB			OEB fees			4			3			8			6

1 During 2025, Ministry replaced MOI in making broadband subsidy payments to Hydro One.

2 On October 31, 2024, the MOI announced that it has developed a program to deliver up to $400 million in subsidies to ISPs for work associated with designated broadband projects. Effective April 2026, this was increased by the Ministry to up to $482 million.

RISK MANAGEMENT AND RISK FACTORS

Hydro One is subject to numerous risks and uncertainties. Critical to Hydro One’s success is the identification, management, and to the extent possible, mitigation of these risks. Hydro One’s Enterprise Risk Management program assists decision-makers throughout the organization with the management of key business risks, including new and emerging risks and opportunities.

A discussion of the material risks relating to Hydro One and its business that the Company believes would be the most likely to influence an investor’s decision to purchase Hydro One’s securities can be found under the heading “Risk Management and Risk Factors” in the 2025 MD&A.

DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING

Management is responsible for establishing and maintaining adequate disclosure controls and procedures and internal control over financial reporting as defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings. Internal control, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives and due to its inherent limitations, may not prevent or detect all misrepresentations.

There were no changes in the Company’s internal control over financial reporting during the three months ended June 30, 2026 that materially affected, or are reasonably likely to materially affect, the Company’s disclosure controls and procedures and internal control over financial reporting.

17

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

NEW ACCOUNTING PRONOUNCEMENTS

The following table presents Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) that are applicable to Hydro One:

Recently Adopted Accounting Guidance

Guidance

Date issued

Description

ASU Effective Date

Impact on Hydro One

ASU 2025-05

July 2025

The amendments allow all entities to use a practical expedient when estimating expected credit losses for current accounts receivable and contract assets under Topic 606, by assuming that current conditions as of the balance sheet date remain unchanged over the asset’s life. Additionally, entities other than public business entities that elect this expedient may adopt an accounting policy to consider post–balance sheet date collection activity in their credit loss estimates.

Annual and interim periods beginning after December 15, 2025.

No impact upon adoption

Recently Issued Accounting Guidance Not Yet Adopted

Guidance

Date issued

Description

ASU Effective Date

Impact on Hydro One

ASU 2023-06

October 2023

The amendments represent changes to clarify or improve disclosure or presentation requirements of a variety of subtopics in the FASB Codification. Many of the amendments allow users to more easily compare entities subject to the U.S. Securities and Exchange’s (SEC) existing disclosures with those entities that were not previously subject to the SEC’s requirements. Also, the amendments align the requirements in the Codification with the SEC’s regulations. Applicable to all entities, if by June 30, 2027 the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entity.

Two years subsequent to the date on which the SEC’s removal of that related disclosure becomes effective.

Under assessment

ASU 2024-03

November 2024

The amendments require public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods, which are not generally presented in the current financial statements.

Annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027.

Under assessment

ASU 2025-03

May 2025

The amendments require entities to apply the guidance for identifying the accounting acquirer in transactions where a business that qualifies as a Variable Interest Entity is acquired through the exchange of equity interests.

Annual and interim periods beginning after December 15, 2026.

No impact upon adoption

ASU 2025-06

September 2025

The amendments modernize accounting for internal-use software by removing outdated development stage references and introducing a capitalization threshold based on management authorization and project completion probability.

Annual and interim periods beginning after December 15, 2027.

Under assessment

ASU 2025-09

November 2025

The amendments expand hedge-accounting eligibility and better align the guidance with common risk‑management practices. Key updates allow grouping forecasted transactions with similar exposure, simplify hedging of choose‑your‑rate variable‑rate debt, and broaden eligibility for hedging nonfinancial components. The guidance modernizes treatment of certain option‑based derivatives and resolves mismatches in dual hedge relationships.

Annual and interim periods beginning after December 15, 2026.

Under assessment

18

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

Guidance

Date issued

Description

ASU Effective Date

Impact on Hydro One

ASU 2025-10

December 2025

The amendments establish authoritative GAAP for government grants, setting recognition, measurement, presentation, and disclosure requirements.

Annual and interim periods beginning after December 15, 2028.

Under assessment

ASU 2025-11

December 2025

The amendments clarify interim reporting by establishing a complete list of required GAAP interim disclosures. They introduce a disclosure principle requiring entities to report material events occurring after the annual reporting period. The Update also clarifies types of interim reports and the form and content of interim financial statements. Overall, the changes enhance clarity and consistency without altering existing disclosure requirements.

Interim reporting periods within annual reporting periods beginning after December 15, 2027.

Under assessment

ASU 2025-12

December 2025

The amendments clarify existing guidance, correct errors, and introduce minor improvements to numerous Codification Topics, thereby making the requirements easier for entities to understand and apply.

Annual and interim periods beginning after December 15, 2026.

Under assessment

ASU 2026-02

May 2026

The amendments establish authoritative guidance on the accounting and disclosure of environmental credits and environmental credit obligations. The guidance establishes a consistent framework for recognizing, measuring, presenting, and disclosing environmental credits and related compliance obligations arising from regulatory compliance programs. Overall, the changes improve comparability, transparency, and consistency in financial reporting.

Annual and interim periods beginning after December 15, 2027.

Under assessment

HYDRO ONE HOLDINGS LIMITED - CONSOLIDATING SUMMARY FINANCIAL INFORMATION

Hydro One Limited fully and unconditionally guarantees the payment obligations of its wholly-owned subsidiary HOHL issuable under the short form base shelf prospectus dated November 29, 2024. Accordingly, the following consolidating summary financial information is provided in compliance with the requirements of section 13.4 of National Instrument 51-102 - Continuous Disclosure Obligations providing for an exemption for certain credit support issuers. The tables below contain consolidating summary financial information as at June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026 and June 30, 2025 for: (i) Hydro One Limited; (ii) HOHL; (iii) the subsidiaries of Hydro One Limited, other than HOHL, on a combined basis; (iv) consolidating adjustments; and (v) Hydro One Limited and all of its subsidiaries on a consolidated basis, in each case for the periods indicated. Such summary financial information is intended to provide investors with meaningful and comparable financial information about Hydro One Limited and its subsidiaries. This summary financial information should be read in conjunction with Hydro One Limited's most recently issued annual and interim financial statements. This summary financial information has been prepared in accordance with U.S. GAAP, as issued by the FASB.

Three months ended June 30 (millions of dollars)			Hydro One Limited						HOHL						Subsidiaries of Hydro One Limited, other than HOHL						Consolidating Adjustments						Total Consolidated Amounts of Hydro One Limited
			2026			2025			2026			2025			2026			2025			2026			2025			2026			2025
Revenue			213			206			—			—			2,534			2,343			(445)			(483)			2,302			2,066
Net Income (Loss) Attributable to Common Shareholders			221			213			—			—			598			568			(449)			(454)			370			327

Six months ended June 30 (millions of dollars)			Hydro One Limited						HOHL						Subsidiaries of Hydro One Limited, other than HOHL						Consolidating Adjustments						Total Consolidated Amounts of Hydro One Limited
			2026			2025			2026			2025			2026			2025			2026			2025			2026			2025
Revenue			413			394			—			—			5,473			5,002			(936)			(922)			4,950			4,474
Net Income (Loss) Attributable to Common Shareholders			430			409			—			—			1,218			1,141			(887)			(865)			761			685

19

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

As at June 30, 2026 and December 31, 2025 (millions of dollars)			Hydro One Limited						HOHL						Subsidiaries of Hydro One Limited, other than HOHL						Consolidating Adjustments						Total Consolidated Amounts of Hydro One Limited
			Jun. 2026			Dec. 2025			Jun. 2026			Dec. 2025			Jun. 2026			Dec. 2025			Jun. 2026			Dec. 2025			Jun. 2026			Dec. 2025
Current Assets			940			940			—			—			3,828			4,172			(2,412)			(2,938)			2,356			2,174
Non-Current Assets			3,321			3,295			—			—			62,099			59,529			(26,702)			(25,327)			38,718			37,497
Current Liabilities			1,079			1,075			—			—			3,972			5,420			(2,380)			(2,905)			2,671			3,590
Non-Current Liabilities			425			425			—			—			43,795			40,475			(18,935)			(17,565)			25,285			23,335

FORWARD-LOOKING STATEMENTS AND INFORMATION

The Company’s oral and written public communications, including this document, often contain “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of applicable U.S. securities laws (collectively, “forward-looking information”). Statements containing forward-looking information are made pursuant to the “safe harbour” provisions of applicable Canadian and U.S. securities laws. Forward-looking information in this document is based on current expectations, estimates, forecasts and projections about the Company’s business, the industry, regulatory and economic environments in which it operates, and includes beliefs and assumptions made by the management of the Company. Such statements include, but are not limited to, statements regarding: the Company’s corporate strategy; the Company’s transmission and distribution rate and revenue requirement applications including the JRAP and its proposed investment plan, resulting and related decisions as well as resulting rates, recovery and expected impacts and timing; expectations about the Company’s liquidity and capital resources and operational requirements; sustainability goals; the Operating Credit Facilities; expectations regarding the Company’s financing activities, including the Company’s expectation that a new Universal Base Shelf Prospectus will be filed in the third quarter of 2026; expectations that the re-introduction of an accelerated capital cost allowance will lower the Company’s ETR to 11% to 15% during the current rate period (to 2027); the Company’s maturing debt; expectations and impact of the Company’s credit ratings; the Company’s ongoing and planned projects (including construction of transmission stations and lines) and expected capital investments and plans, including expected scope, approvals, results, costs, funding sources, increased transfer capacities, potential job creation and in-service and completion dates; cross-currency swap agreements; contractual obligations and other commercial commitments; future pension plan contributions, including estimates of total Company pension contributions; the expected advancement and construction of various transmission stations and transmission lines in connection with the Province’s integrated energy plan and the target in-service dates; collective agreements and bargaining; dividends; non-GAAP financial measures; internal controls over financial reporting and disclosure; the MTN Program; and accounting-related guidance and expected impacts. Words such as “expect,” “anticipate,” “intend,” “attempt,” “may,” “plan,” “will,” “would,” “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. Hydro One does not intend, and it disclaims 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 or for Hydro One specifically; favourable decisions from the OEB and other regulatory bodies concerning outstanding and future rate and other applications; no unexpected delays in obtaining required regulatory approvals; no unforeseen changes in rate orders or rate setting methodologies for the Company’s distribution and transmission businesses; no unfavourable changes in environmental regulation; continued use of U.S. GAAP; a stable regulatory environment; no significant changes to the Company's current credit ratings; no unforeseen impacts of new accounting pronouncements; no changes to expectations regarding electricity consumption; no unforeseen changes to economic and market conditions; completion of operating and capital projects that have been deferred; and no significant event occurring outside the ordinary course of business. These assumptions are based on information currently available to the Company, including information obtained from third-party sources. Actual results may differ materially from those predicted by such forward-looking statements. While Hydro One does not know what impact any of these differences may have, the Company’s business, results of operations, financial condition and credit stability may be materially adversely affected if any such differences occur. 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:

•regulatory risks and risks relating to Hydro One’s revenues, including risks relating to actual performance against forecasts, competition with other transmitters and other applications to the OEB, the rate-setting models for transmission and distribution, the recoverability of capital expenditures, obtaining rate orders or recoverability of total compensation costs;

•risks associated with the Province’s share ownership of Hydro One and other relationships with the Province, including potential conflicts of interest that may arise between Hydro One, the Province and related parties, risks associated with the Province’s exercise of further legislative and regulatory powers, risks relating to the ability of the Company to attract and retain qualified executive talent or the risk of a credit rating downgrade for the Company and its impact on the Company’s funding and liquidity;

20

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)

For the three and six months ended June 30, 2026 and 2025

•risks relating to the location of the Company’s assets on Reserve lands, that the Company’s operations and activities may give rise to the Crown’s duty to consult and potentially accommodate Indigenous communities, and the risk that Hydro One may incur significant costs associated with transferring assets located on Reserves;

•the risk that the Company may be unable to comply with regulatory and legislative requirements or that the Company may incur additional costs for compliance that are not recoverable through rates;

•the risk of exposure of the Company’s facilities to the effects of severe weather conditions, natural disasters, man-made events or other unexpected occurrences for which the Company is uninsured or for which the Company could be subject to claims for damage;

•risks associated with information system security and maintaining complex information technology and OT system infrastructure, including system failures or risks of cyber-attacks or unauthorized access to corporate information technology and OT systems;

•the risk of non-compliance with environmental regulations and inability to recover environmental expenditures in rate applications and the risk that assumptions that form the basis of the Company’s recorded environmental liabilities and related regulatory assets may change;

•the risk of labour disputes and inability to negotiate or renew appropriate collective agreements on acceptable terms consistent with the Company’s rate decisions;

•the risk that the Company may not be able to execute plans for capital projects necessary to maintain the performance of the Company’s assets or to carry out projects in a timely manner or the risk of increased competition for the development of large transmission projects or legislative changes affecting the selection of transmitters;

•risks associated with asset condition, capital projects and innovation, including public opposition to or delays or denials of the requisite approvals and accommodations for the Company’s planned projects;

•risks related to the Company’s work force demographic and its potential inability to attract and retain qualified personnel;

•the risk that the Company is not able to arrange sufficient cost-effective financing to repay maturing debt and to fund capital expenditures, the risk of a downgrade in the Company’s credit ratings or risks associated with investor interest in ESG performance and reporting;

•risks associated with fluctuations in interest rates and failure to manage exposure to credit and financial instrument risk;

•risks associated with economic uncertainty and financial market volatility;

•the risk of failure to mitigate significant health and safety risks;

•the risk of not being able to recover the Company’s pension expenditures in future rates and uncertainty regarding the future regulatory treatment of pension, other post-employment benefits and post-retirement benefits costs;

•the impact of the ownership by the Province of lands underlying the Company’s transmission system;

•the risk associated with legal proceedings that could be costly, time-consuming or divert the attention of management and key personnel from the Company’s business operations;

•the impact if the Company does not have valid occupational rights on third-party owned or controlled lands and the risks associated with occupational rights of the Company that may be subject to expiry;

•risks relating to adverse reputational events or political actions relating to Hydro One and the electricity industry;

•the potential that Hydro One may incur significant expenses to replace functions currently outsourced if agreements are terminated or expire before a new service provider is selected;

•risks relating to acquisitions, including the failure to realize the anticipated benefits of such transactions at all, or within the time periods anticipated, and unexpected costs incurred in relation thereto;

•risks relating to an outbreak of infectious disease;

•the inability to continue to prepare financial statements using U.S. GAAP; and

•the risk related to the impact of any new accounting pronouncements.

Hydro One cautions 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 entitled “Risk Management and Risk Factors” in this MD&A.

In addition, Hydro One cautions the reader that information provided in this MD&A regarding the Company’s outlook on certain matters, including potential future investments, is provided in order to give context to the nature of some of the Company’s future plans and may not be appropriate for other purposes.

Additional information about Hydro One, including the Company’s Annual Information Form, is available on SEDAR+ at www.sedarplus.com, the U.S. Securities and Exchange Commission’s EDGAR website at www.sec.gov/edgar.shtml, and the Company’s website at www.HydroOne.com/Investors.

21

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS – FULL CERTIFICATE

I, Megan Telford, President and Chief Executive Officer, Hydro One Limited, certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Hydro One Limited (the “issuer”) for the interim period ended June 30, 2026.

2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

a.designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)    designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1    Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Internal Control – Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission.

5.2     N/A

5.3     N/A

6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2026 and ended on June 30, 2026 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date:						August 12, 2026
						/s/ Megan Telford
						President and Chief Executive Officer

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS – FULL CERTIFICATE

I, Harry Taylor, Executive Vice President, Chief Financial and Regulatory Officer, Hydro One Limited, certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Hydro One Limited (the “issuer”) for the interim period ended June 30, 2026.

2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

a.designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)    designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1    Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Internal Control – Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission.

5.2    N/A

5.3    N/A

6.    Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2026 and ended on June 30, 2026 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date:						August 12, 2026
						/s/ Harry Taylor
						Executive Vice President, Chief Financial and Regulatory Officer

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 795.2 KB
• EX-99.2 EX-99.2 669.1 KB
• EX-99.3 EX-99.3 12.0 KB
• EX-99.4 EX-99.4 12.2 KB