HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS

For the three and six months ended June 30, 2025 and 2024

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, 2025, as well as the Company’s audited consolidated financial statements and MD&A for the year ended December 31, 2024. 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, 2025, based on information available to management as of August 12, 2025.

CONSOLIDATED FINANCIAL HIGHLIGHTS AND STATISTICS

	Three months ended June 30						Six months ended June 30
(millions of dollars, except as otherwise noted)	2025		2024		Change		2025		2024		Change
Revenues	2,066		2,031		1.7	%	4,474		4,197		6.6	%
Purchased power	899		940		(4.4	%)	2,119		2,036		4.1	%
Revenues, net of purchased power1	1,167		1,091		7.0	%	2,355		2,161		9.0	%
Operation, maintenance and administration (OM&A) costs	320		319		0.3	%	652		641		1.7	%
Depreciation, amortization and asset removal costs	288		263		9.5	%	552		517		6.8	%
Financing charges	169		157		7.6	%	332		305		8.9	%
Income tax expense	61		57		7.0	%	129		108		19.4	%
Net income attributable to common shareholders of Hydro One	327		292		12.0	%	685		585		17.1	%
Basic earnings per common share (EPS)	$0.54		$0.49		10.2	%	$1.14		$0.98		16.3	%
Diluted EPS	$0.54		$0.49		10.2	%	$1.14		$0.97		17.5	%
Net cash from operating activities	605		746		(18.9	%)	1,115		1,208		(7.7	%)
Funds from operations (FFO)1	617		523		18.0	%	1,300		1,125		15.6	%
Annualized FFO to Net Debt1	13.6	%	13.6	%	0.0	%	13.6	%	13.6	%	0.0	%
Capital investments	913		818		11.6	%	1,648		1,491		10.5	%
Assets placed in-service	591		526		12.4	%	1,014		766		32.4	%
Transmission: Average monthly Ontario 60-minute peak demand(MW)	20,836		20,749		0.4	%	21,008		20,274		3.6	%
Distribution: Electricity distributed to Hydro One customers (GWh)	7,231		6,970		3.7	%	16,555		15,583		6.2	%

As at	June 30, 2025		December 31, 2024
Net Debt to capitalization ratio1	59.3	%	58.4	%

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, an approximate 90% interest in Chatham x Lakeshore Limited Partnership (CLLP), an approximate 66% interest in B2M Limited Partnership (B2M LP) and an approximate 55% interest in Niagara Reinforcement Limited Partnership (NRLP). The Company’s approximately 90% interest in CLLP was reduced to approximately 80% in July 2025. The Transmission segment also includes Hydro One Networks’ approximate 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).

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 (2024 - a joint venture) 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.

1

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

For the six months ended June 30, 2025 and 2024, Hydro One's segments accounted for the Company's total revenues, as follows:

Six months ended June 30	2025		2024
Transmission	28	%	27	%
Distribution	71	%	72	%
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, 2025 and 2024 as follows:

Six months ended June 30	2025		2024
Transmission	53	%	53	%
Distribution	46	%	46	%
Other	1	%	1	%

As at June 30, 2025 and December 31, 2024, Hydro One’s segments accounted for the Company’s total assets as follows:

As at	June 30, 2025		December 31, 2024
Transmission	60	%	59	%
Distribution	39	%	38	%
Other	1	%	3	%

RESULTS OF OPERATIONS

Net Income

Net income attributable to common shareholders of Hydro One for the quarter ended June 30, 2025 of $327 million is an increase of $35 million, or 12.0%, compared to the same period in 2024. 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 2025 rates and higher energy consumption.

•lower OM&A, when excluding net income neutral items, primarily resulting from lower work program expenditures, including lower vegetation management expenditures, partially offset by lower insurance proceeds received in the period compared to the prior year and higher asset write-offs.

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

•higher financing charges attributable to an increase in long-term debt outstanding, 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, 2025 of $685 million is $100 million, or 17.1%, higher than the same period in 2024. Year-to-date results were impacted by similar factors as noted above as well as higher average monthly peak demand in the first quarter of the year. Higher OM&A on a year-to-date basis was also impacted by higher information technology-related expenditures in the first quarter of the year.

EPS

EPS of $0.54 and $1.14 for the three and six months ended June 30, 2025, respectively, compares to EPS of $0.49 and $0.98 in the same periods of 2024. The increase in EPS was primarily driven by higher earnings year-over-year, as discussed above.

1See section “Non-GAAP Financial Measures”.

2

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

Revenues

	Three months ended June 30				Six months ended June 30
(millions of dollars, except as otherwise noted)	2025	2024	Change		2025	2024	Change
Transmission	622	583	6.7	%	1,258	1,136	10.7	%
Distribution	1,434	1,436	(0.1	%)	3,195	3,041	5.1	%
Other	10	12	(16.7	%)	21	20	5.0	%
Total revenues	2,066	2,031	1.7	%	4,474	4,197	6.6	%
Transmission	622	583	6.7	%	1,258	1,136	10.7	%
Distribution revenues, net of purchased power1	535	496	7.9	%	1,076	1,005	7.1	%
Other	10	12	(16.7	%)	21	20	5.0	%
Total revenues, net of purchased power1	1,167	1,091	7.0	%	2,355	2,161	9.0	%
Transmission: Average monthly Ontario 60-minute peak demand(MW)	20,836	20,749	0.4	%	21,008	20,274	3.6	%
Distribution: Electricity distributed to Hydro One customers (GWh)	7,231	6,970	3.7	%	16,555	15,583	6.2	%

1 See section “Non-GAAP Financial Measures”.

Transmission Revenues

Transmission revenues increased by 6.7% compared to the quarter ended June 30, 2024, primarily due to:

•higher revenues resulting from OEB-approved 2025 rates; and

•CLLP revenues following the in servicing of the transmission line in the fourth quarter of 2024 and equity income associated with Hydro One’s investment in EWT LP.

Transmission revenues increased by 10.7% compared to the six months ended June 30, 2024, primarily due to similar factors noted above as well as higher average monthly peak demand in the first quarter of the year.

Distribution Revenues

Distribution revenues decreased by 0.1% compared to the quarter ended June 30, 2024, primarily due to:

•lower purchased power costs, which are fully recovered from ratepayers and thus net income neutral; partially offset by

•higher revenues resulting from OEB-approved 2025 rates;

•higher energy consumption; and

•higher external revenues related to the recovery of storm-related costs incurred on behalf of third parties, which are offset by a corresponding increase to OM&A and therefore net income neutral.

Distribution revenues increased by 5.1% compared to the six months ended June 30, 2024, primarily due to:

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

•higher revenues resulting from OEB-approved 2025 rates;

•higher energy consumption; and

•higher external revenues related to the recovery of storm-related costs incurred on behalf of third parties, which are offset by a corresponding increase to OM&A and therefore net income neutral.

Distribution revenues, net of purchased power,2 increased by 7.9% and 7.1% compared to the three and six months ended June 30, 2024, primarily due to the reasons noted above.

2 See section “Non-GAAP Financial Measures”.

3

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

OM&A Costs

	Three months ended June 30				Six months ended June 30
(millions of dollars, except as otherwise noted)	2025	2024	Change		2025	2024	Change
Transmission	129	113	14.2	%	258	234	10.3	%
Distribution	163	182	(10.4	%)	344	362	(5.0	%)
Other	28	24	16.7	%	50	45	11.1	%
	320	319	0.3	%	652	641	1.7	%

Transmission OM&A Costs

Transmission OM&A costs were 14.2% higher than the quarter ended June 30, 2024, primarily due to:

•higher corporate support costs attributable to lower capitalized overheads;

•lower insurance proceeds received in the period compared to the prior year; and

•higher asset write-offs.

Transmission OM&A costs were 10.3% higher than the six months ended June 30, 2024, primarily due to the factors noted above, as well as higher work program expenditures, including those attributable to information technology-related expenditures.

Distribution OM&A Costs

Distribution OM&A costs were 10.4% lower than the quarter ended June 30, 2024, primarily due to:

•lower work program expenditures, including vegetation management expenditures;

•lower corporate support costs attributable to higher capitalized overheads; and

•lower allowance for doubtful accounts; partially offset by

•costs related to the storm in March that were recovered from third parties and are offset in revenue, therefore net income neutral.

Distribution OM&A costs were 5.0% lower than the six months ended June 30, 2024, primarily due to similar factors to those noted above.

Depreciation, Amortization and Asset Removal Costs

Depreciation, amortization and asset removal costs increased by $25 million and $35 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024 primarily due to higher assets removal costs resulting from storm restoration efforts and the growth in capital assets as the Company continues to place new assets in-service, partially offset by lower amortization of regulatory assets.

Financing Charges

Financing charges increased by $12 million and $27 million for the three and six months ended June 30, 2025, respectively, primarily due to an increase in outstanding long-term debt and higher weighted-average interest rates as well as lower weighted-average interest rates on short-term investments, partially offset by higher capitalized interest.

Income Tax Expense

Income tax expense of $61 million for the three months ended June 30, 2025 compares to $57 million for the same period in 2024. The $4 million year-over-year increase was primarily due to:

•higher pre-tax earnings; partially offset by

•higher deductible timing differences compared to the prior year.

Income tax expense of $129 million for the six months ended June 30, 2025 compares to $108 million for the same period in 2024. The year-over-year change was primarily due to similar factors to those noted above.

The Company realized an effective tax rate of approximately 15.6% and 15.8% for the three and six months ended June 30, 2025, respectively, compared to approximately 16.2% and 15.5% in the same periods of 2024. The decrease of 0.6% and the increase of 0.3% in the respective periods was primarily attributable to the factors noted above.

4

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

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 12, 2025, Hydro One had 599,777,173 issued and outstanding common shares.

The Company is authorized to issue an unlimited number of preferred shares, issuable in series. As at August 12, 2025, 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 were vested and exercised as at August 12, 2025 was 1,486,593.

Common Share Dividends

In 2025, 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 19, 2025	March 12, 2025	March 31, 2025	$0.3142	188
May 7, 2025	June 11, 2025	June 30, 2025	$0.3331	200
				388

Following the conclusion of the second quarter of 2025, 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 12, 2025	September 10, 2025	September 29, 2025	$0.3331	$200

QUARTERLY RESULTS OF OPERATIONS

Quarter ended (millions of dollars, except EPS and ratio)	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023
Revenues	2,066	2,408	2,095	2,192	2,031	2,166	1,979	1,934
Purchased power	899	1,220	1,060	1,047	940	1,096	990	854
Revenues, net of purchased power1	1,167	1,188	1,035	1,145	1,091	1,070	989	1,080
Net income attributable to common shareholders	327	358	200	371	292	293	181	357
Basic EPS	$0.54	$0.60	$0.33	$0.62	$0.49	$0.49	$0.30	$0.60
Diluted EPS	$0.54	$0.60	$0.33	$0.62	$0.49	$0.49	$0.30	$0.59
Earnings coverage ratio1	2.8	2.8	2.8	2.8	2.8	2.8	2.9	3.0

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

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.

5

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

Assets Placed In-Service

The following table presents Hydro One’s assets placed in-service during the three and six months ended June 30, 2025 and 2024:

	Three months ended June 30				Six months ended June 30
(millions of dollars)	2025	2024	Change		2025	2024	Change
Transmission	147	290	(49.3	%)	334	354	(5.6	%)
Distribution	439	233	88.4	%	669	405	65.2	%
Other	5	3	66.7	%	11	7	57.1	%
Total assets placed in-service	591	526	12.4	%	1,014	766	32.4	%

Transmission Assets Placed In-Service

Transmission assets placed in-service decreased by $143 million, or 49.3%, for the quarter ended June 30, 2025, compared to the same period in 2024, primarily due to:

•timing of assets placed in-service for station refurbishments and replacements primarily related to the Wilson Transmission Station, the Beck 2 Transmission Station, the Sarnia Scott Transmission Station, the Bridgman Transmission Station, and the Edgeware Transmission Station; and

•lower volume of line refurbishments; partially offset by

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

Transmission assets placed in-service decreased by $20 million, or 5.6%, for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to similar factors noted above, partially offset by the timing of assets placed in-service for station refurbishments and replacements including the Mackenzie Transmission Station, and investments placed in-service at South Middle Road Transmission Station.

Distribution Assets Placed In-Service

Distribution assets placed in-service increased by $206 million, or 88.4%, for the quarter ended June 30, 2025, compared to the same period in 2024, primarily due to:

•higher volume of storm-related asset replacements, primarily related to the March ice storm and associated restoration efforts;

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

•timing of system capability reinforcement projects; and

•investments in the Advanced Metering Infrastructure (AMI) 2.0 system; partially offset by

•lower volume of wood pole replacements.

Distribution assets placed in-service increased by $264 million, or 65.2%, for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to similar factors noted above, as well as investments in the Orillia Operation Centre.

Capital Investments

The following table presents Hydro One’s capital investments during the three and six monthsended June 30, 2025 and 2024:

	Three months ended June 30				Six months ended June 30
(millions of dollars)	2025	2024	Change		2025	2024	Change
Transmission
Sustaining	277	315	(12.1	%)	549	603	(9.0	%)
Development	192	140	37.1	%	370	249	48.6	%
Other	21	47	(55.3	%)	30	71	(57.7	%)
	490	502	(2.4	%)	949	923	2.8	%
Distribution
Sustaining	297	159	86.8	%	440	266	65.4	%
Development	101	123	(17.9	%)	196	238	(17.6	%)
Other	22	32	(31.3	%)	56	59	(5.1	%)
	420	314	33.8	%	692	563	22.9	%
Other	3	2	50.0	%	7	5	40.0	%
Total capital investments	913	818	11.6	%	1,648	1,491	10.5	%

6

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

Transmission Capital Investments

Transmission capital investments decreased by $12 million, or 2.4%, in the second quarter of 2025 compared to the second quarter of 2024, primarily due to:

•lower volume of station refurbishments and equipment replacements;

•lower spend on major development projects;

•lower volume of line refurbishments and wood pole replacements; and

•lower spend on spare transformer purchases; partially offset by

•investments in the Waasigan Transmission Line.

Transmission capital investments increased by $26 million, or 2.8%, in the six months ended June 30, 2025, compared to the same period in 2024 primarily due to:

•investments in the Waasigan Transmission Line; partially offset by

•lower volume of station refurbishments and equipment replacements;

•lower volume of line refurbishments and wood pole replacements;

•lower spend on major development projects; and

•lower spend on specified equipment to support long-term projects.

Distribution Capital Investments

Distribution capital investments increased by $106 million, or 33.8%, in the second quarter of 2025 compared to the second quarter of 2024, primarily due to:

•higher spend on storm-related asset replacements, primarily related to the March ice storm and associated restoration efforts; and

•investments in Ontario’s broadband initiative; partially offset by

•lower volume of wood pole replacements;

•lower spend on system capability reinforcement projects; and

•investments in the Orillia Operation Centre, Orleans Operation Centre, and Orillia Distribution Warehouse in the second quarter of the prior year.

Distribution capital investments increased by $129 million, or 22.9%, in the six months ended June 30, 2025, primarily due to similar factors noted above, as well as by lower spend on customer connections.

7

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

Major Transmission Capital Investment Projects

The following table summarizes the status of significant transmission projects as at June 30, 2025:

Project Name	Location	Type	Anticipated In-Service Date	Estimated Cost1	Capital Cost To Date
			(year)	(millions of dollars)
Development Projects:
Centennial Transmission Station2	Southwestern Ontario	New transmission station and   connection	2025	229	126
Islington Transmission Station	Toronto Southern Ontario	New transmission station and   connection	2025	109	78
Waasigan Transmission Line3	Thunder Bay-Atikokan-Dryden   Northwestern Ontario	New transmission line and   station expansion	2027	1,200	325
Holt Transmission Station	Bowmanville Central Ontario	New transmission station and   connection	2027	137	11
St. Clair Transmission Line4	Southwestern Ontario	New transmission line and   station expansion	2028	472	167
Longwood to Lakeshore Transmission Line5	Southwestern Ontario	New transmission line and   station expansion	TBD	TBD	25
Durham Kawartha Power Line6,7	Eastern Ontario	New transmission line and   station expansion	TBD	TBD	14
Northeast Power Line6,7	Northeastern Ontario	New transmission line and   station expansion	TBD	TBD	13
North Shore Link6,7	Northeastern Ontario	New transmission line and   station expansion	TBD	TBD	10
Wawa Timmins Power Line6,7	Northeastern Ontario	New transmission line and   station expansion	TBD	TBD	3
Lakeshore to Windsor      Transmission Line5	Southwestern Ontario	New transmission line and   station expansion	TBD	TBD	1
Second Longwood to Lakeshore Transmission Line5	Southwestern Ontario	New transmission line and   station expansion	TBD	TBD	_
Sustainment Projects:
Bruce B Switching Station      Circuit Breaker Replacement8	Tiverton   Southwestern Ontario	Station sustainment	2025	185	177
Middleport Transmission Station      Circuit Breaker Replacement	Middleport   Southwestern Ontario	Station sustainment	2025	184	167
Lennox Transmission Station      Circuit Breaker Replacement	Napanee   Southeastern Ontario	Station sustainment	2026	152	147
Esplanade x Terauley      Underground Cable Replacement	Toronto   Southern Ontario	Line sustainment	2026	117	80
Bridgman Transmission Station      Refurbishment	Toronto   Southern Ontario	Station sustainment	2026	108	87
Bruce A Transmission Station      Switchyard Replacement	Tiverton   Southwestern Ontario	Station sustainment	2027	555	383
Otto Holden Transmission Station      Refurbishment	Mattawa   Northeast Ontario	Station sustainment	2028	128	45
Merivale Transmission Station      Replacement and Upgrades9	Ottawa   Eastern Ontario	Station sustainment and   upgrade	2029	271	143
Synchronous Optical Network      Telecommunication Replacement	Ontario	Telecommunication sustainment	2029	137	13
Essa Transmission Station Circuit       Breaker Replacement	Barrie   Central Ontario	Station sustainment	2030	116	5

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

2 This Project is part of a two-phase project, 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. This phase of the project is anticipated to be in service by the end of 2025. Scope and timing of the second phase, an approximately 20 km, 230 kV double-circuit transmission line from London to St. Thomas, is currently under review.

3 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.

4 The St. Clair Transmission Line Project includes the line and associated facilities.

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

6 The capital cost to date relates to costs incurred in the development phase of the project. The scope and timing of these Northeastern and Eastern Ontario transmission reinforcements are currently under review. The Wawa Timmins Power Line was previously referred to as the Wawa to Porcupine Transmission Line.

7 The IESO has recommended a target in-service date of 2030 for the Wawa Timmins Power Line, and of 2029 for the Northeast Power Line, North Shore Link, and the Durham Kawartha Power Line.

8 Major portions of the Bruce B Switching Station Circuit Breaker Replacement were completed and placed in-service.

9 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 sixmonthsended June 30, 2025 and 2024

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.

The forecast below does not include the impact of restoration costs associated with a severe storm that began on March 28, 2025 causing significant damage to system infrastructure and outages to customers in the central and eastern regions of the Province, with restoration efforts continuing into the second quarter. On April 29, 2025, the Company notified the OEB that it intends to submit a Z-Factor application to seek recovery of costs incurred for this storm. The Z-Factor application will seek recovery of approximately $225 million in storm-related costs, including capital and asset removal costs. The forecast is expected to be updated pending the outcome of that application.

The following tables summarize Hydro One’s annual projected capital investments for 2025 to 2027 by business segment and by category:

By business segment: (millions of dollars)	2025	2026	2027
Transmission1	2,284	1,760	1,375
Distribution	1,225	1,061	912
Other	33	47	32
Total capital investments2	3,542	2,868	2,319

By category: (millions of dollars)	2025	2026	2027
Sustainment	1,733	1,359	1,065
Development1	1,569	1,336	1,096
Other3	240	173	158
Total capital investments2	3,542	2,868	2,319

1 Figures include investments in certain development projects of Hydro One Networks not included in the investment plan approved by the OEB in the JRAP decision.

2 Since the first quarter of 2022, the Minister of Energy and Electrification (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 eight priority transmission lines in Ontario. The future capital investments presented do not include capital expenditures, nor development costs, associated with the following three priority Southwestern Ontario transmission line projects: Longwood to Lakeshore Transmission Line, Second Longwood to Lakeshore Transmission Line, and Lakeshore to Windsor Transmission Line; nor the following four priority Northeastern and Eastern Ontario transmission line projects: North Shore Link, Northeast Power Line, Durham Kawartha Power Line, and Wawa to Porcupine Transmission Line (see section “Other Developments - Supporting Critical Transmission Infrastructure in Northeastern and Eastern Ontario”). Hydro One is currently evaluating the scope and timing of these seven lines.

3 “Other” capital expenditures include investments in fleet, real estate, information technology, 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)	2025	2024	2025	2024
Net cash from operating activities	605	746	1,115	1,208
Net cash from (used in) financing activities	170	(512)	37	321
Net cash used in investing activities	(827)	(846)	(1,797)	(1,534)
Net change in cash and cash equivalents	(52)	(612)	(645)	(5)

Net cash from operating activities

Net cash from operating activities decreased by $141 million for the three months ended June 30, 2025, compared to the same period in 2024. The decrease was impacted by various factors, including the following:

•decrease in net working capital deficiency primarily attributable to lower non-energy payables and accrued liabilities, lower cost of power payable to the IESO driven by lower commodity rates charges, and higher accounts receivable, partially offset by higher prepaid expense; partially offset by

•higher pre-tax earnings.

9

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

Net cash from operating activities decreased by $93 million for the six months ended June 30, 2025, compared to the same period in 2024. The decrease was mainly attributable to similar factors as noted above.

Net cash from (used in) financing activities

Net cash from financing activities increased by $682 million and decreased by $284 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. This was impacted by various factors, including the following:

Sources of cash

•the Company received proceeds of $2,065 million and $3,140 million from the issuance of short-term notes in the three and six month periods ended June 30, 2025, respectively, compared to $1,095 million and $1,595 million received in the same periods last year.

•the Company did not issue long-term debt in the three and six months ended June 30, 2025, respectively, compared to $nil and $800 million issued in the same period last year.

Uses of cash

•the Company repaid $1,350 million and $1,965 million of short-term notes in the three and six month periods ended June 30, 2025, respectively, compared to $715 million and $995 million repaid in the same periods last year.

•the Company repaid $350 million and $750 million of long-term debt in the three and six month periods ended June 30, 2025, compared to $700 million paid in the same periods last year.

•common share dividends paid in the three and six month periods ended June 30, 2025 were $200 million and $388 million, respectively, compared to dividends of $188 million and $366 million paid in the same periods last year.

Net cash used in investing activities

Net cash used in investing activities decreased by $19 million and increased by $263 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The decrease in the second quarter was primarily due to lower additions to future use assets, partially offset by higher capital investments. The year-to-date period reflects the investment in EWT LP (see section “Other Developments - EWT LP”) and higher capital investments. See section “Capital Investments” for comparability of capital investments made by the Company during the three and six months ended June 30, 2025 compared to 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, 2025, Hydro One Inc. had $1,371 million in commercial paper borrowings outstanding, compared to $200 million outstanding at December 31, 2024. The Company also has committed, unsecured, and revolving credit facilities (Operating Credit Facilities) with a total available balance of $3,300 million as at June 30, 2025. 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, 2025, Hydro One extended the maturity date of the Operating Credit Facilities from 2029 to 2030. No amounts were drawn on the Operating Credit Facilities as at June 30, 2025 or December 31, 2024. 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.

As at June 30, 2025, the Company had long-term debt outstanding in the principal amount of $16,745 million, which included $425 million of long-term debt issued by Hydro One and $16,320 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, as further described below. The Company's total long-term debt consists of notes and debentures that mature between 2025 and 2064, and as at June 30, 2025 had a weighted-average term to maturity of approximately 13.8 years (December 31, 2024 - 13.7 years) and a weighted-average coupon rate of 4.2% (December 31, 2024 - 4.2%).

In February 2024, Hydro One Inc. filed a short form base shelf prospectus in connection with its MTN Program, which expires in March 2026.

3 See section “Non-GAAP Financial Measures”.

10

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

On August 19, 2024, Hydro One filed the Universal Base Shelf Prospectus with securities regulatory authorities in Canada. The short form base shelf prospectus (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, 2025, no securities have been issued under the Universal Base Shelf Prospectus.

On November 29, 2024, Hydro One Holdings Limited (HOHL) filed a short form base shelf prospectus (U.S. Debt Shelf Prospectus) with securities regulatory authorities in Canada and the U.S., that expires in December 2026. The 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, 2025, no securities have been issued under the U.S. Debt Shelf Prospectus.

Compliance

As at June 30, 2025, 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, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

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, 2025 (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	16,745	900	1,600	1,900	12,345
Long-term debt - interest payments	10,058	700	1,323	1,209	6,826
Short-term notes payable	1,371	1,371	—	—	—
Pension contributions1	472	82	166	178	46
Outsourcing and other agreements	113	53	35	12	13
Environmental and asset retirement obligations	99	16	6	3	74
Lease obligations	51	16	27	7	1
Long-term software/meter agreement	14	6	4	4	—
Total contractual obligations	28,923	3,144	3,161	3,313	19,305
Other commercial commitments (by year of expiry)
Operating Credit Facilities	3,300	—	—	3,300	—
Letters of credit2	163	163	—	—	—
Guarantees3	540	540	—	—	—
Total other commercial commitments	4,003	703	—	3,300	—

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.

2 Letters of credit consist of $153 million letters of credit related to retirement compensation arrangements, a $3 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) and $5 million relating to Aux Energy Inc.

REGULATION

OEB Cost of Capital Policy Review

On March 6, 2024, the OEB commenced a hearing on its own motion to consider the methodology for determining the values of the cost of capital parameters and deemed capital structure to be used in the rate-setting process, as well as the methodology for determining the OEB’s prescribed interest rates and matters related to the Incremental Cloud Computing Implementation Costs deferral account, including what type of interest rate, if any, should apply to the account. On March 27, 2025, the OEB issued its Decision and Order, issuing new cost of capital parameters and confirming that the new cost of capital parameters will take effect at a utility’s next rebasing rate application. The OEB’s approach for deemed capital structure remained unchanged at 40% equity and 60% debt, for transmission and distribution electricity utilities. The OEB also concluded that the prescribed interest rate for deferral and variance accounts will continue to apply to the Incremental Cloud Computing Implementation Costs deferral account, and that each utility, in its next rebasing rate application, can propose the treatment of any future cloud

11

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

solutions during the rate term, which could include a new cloud solution deferral account. If no proposal is made during that rebasing rate application, the account will be closed.

Extended Horizons Variance Account

On March 20, 2025, the OEB established a generic deferral and variance account, effective November 18, 2024. This variance account allows rate-regulated electricity distributors to record the incremental revenue requirement impacts resulting from reductions in the forecasted customer capital contributions embedded in distribution rates related to the OEB’s amendments to the Distribution System Code in December, 2024, which extend the connection horizon and revenue horizon for certain customer connections. The Company has not recorded any amounts in this account as at June 30, 2025.

Building Broadband Faster Act, 2021

In March 2021, the Province of Ontario (Province) introduced Bill 257, Supporting Broadband and Infrastructure Expansion Act, 2021, to create a new act entitled the Building Broadband Faster Act, 2021 (BBFA) that is aimed at supporting the timely deployment of broadband infrastructure within unserved and underserved rural Ontario communities. Bill 257 received Royal Assent on April 12, 2021. Bill 257 amended the Ontario Energy Board Act, 1998 (OEBA) to provide the Province with regulation-making authority regarding the development of, access to, or use of electricity infrastructure for non-electricity purposes. The BBFA Guideline and two regulations informing the legislative changes were also published in 2021, with a third regulation on annual wireline attachment rate for telecommunications carriers issued in December 2021. The most recent Order and Decision from the OEB adjusts the annual wireline attachment rate to $39.14 per attacher per pole, effective January 1, 2025.

In March 2022, the Province introduced Bill 93 (Getting Ontario Connected Act, 2022). Bill 93 received Royal Assent on April 14, 2022. Bill 93 amends the BBFA to ensure that organizations that own underground utility infrastructure near a designated high-speed internet project provide timely access to their infrastructure data, which would allow internet service providers to quickly start work on laying down underground high-speed internet infrastructure.

A regulation regarding electricity infrastructure and designated broadband projects under the OEBA (O.Reg. 410/22) came into force on April 21, 2022. On July 7, 2022, the OEB established a deferral account for rate-regulated distributors to record incremental costs associated with carrying out activities pertaining to designated broadband projects. In September 2022, the Company launched its choice-based operating model to provide internet service providers with choices on how to access the Company’s infrastructure in order to effectively execute designated broadband projects. On March 28, 2023, the Province amended the OEBA (O.Reg. 410/22) with respect to performance timelines associated with designated broadband projects.

On August 14, 2023, the third edition of the BBFA Guideline was issued with amendments providing additional guidance to support the implementation of legislative and regulatory requirements, including a framework to support cost sharing for pole attachments and make-ready work.

The Company has developed and adapted an appropriate management framework that meets the government’s objectives, including arrangements to sustain the Company’s revenues and recovery of reasonable associated costs.

On October 31, 2024, the Ministry of Infrastructure 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”).

Affordable Energy Act, 2024 and Ontario Integrated Energy Plan

In January 2024, the Electrification and Energy Transition Panel, an advisory body to the Province, released its report outlining a roadmap for Ontario’s transition to a clean energy economy. In October 2024, the Province released its vision for Ontario’s energy sector, Ontario’s Affordable Energy Future, outlining key objectives to meet growing electricity demand in Ontario. This vision was intended to help guide the Province’s first integrated energy plan (IEP), among other initiatives. In support, Bill 214, Affordable Energy Act, 2024, was introduced and subsequently received Royal Assent on December 4, 2024. The Affordable Energy Act, 2024 amended various statutes, including the Electricity Act and the OEBA, providing a legislative framework to replace the Province’s long-term energy plans (including the 2017 Long-Term Energy Plan), with integrated energy plans. Whereas the focus of the long-term energy plan has been primarily on the electricity system, the integrated energy plan is intended to address all sources of energy. The amendments effected by the Affordable Energy Act, 2024 also allow the Minister, subject to the approval of the Lieutenant Governor in Council, to issue directives to the IESO and OEB setting out implementation requirements relating to the integrated energy plan. From October to December 2024, the Ministry of Energy and Mines (Ministry) (formerly the Ministry of Energy and Electrification) ran a consultation requesting feedback to assist the Province in developing its first plan.

The changes made by the Affordable Energy Act, 2024 to the OEBA, among other things, also provide the Province with the ability to make regulations specifying amendments to the Distribution System Code and the Transmission System Code in relation to certain cost allocation and cost recovery matters relating to the construction, expansion or reinforcement of distribution

12

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

systems or transmission systems, or of connections to those systems. The changes made by the Affordable Energy Act, 2024 also allow regulations to be made exempting persons or things from provisions of the Distribution System Code and the Transmission System Code relating to cost allocation or cost recovery, as well as alternative provisions that apply instead.

On June 12, 2025, the Ontario government released its first 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 new transmission projects, including the following:

•Barrie to Sudbury Transmission Line, a new single circuit 500 kV line between Essa Transformer Station (TS) and Hanmer TS, including any associated station facilities with a target in-service date of 2032, as well as early development work on a second 500 kV line;

•Orangeville to Barrie Reconductoring Project, which involves the reconductoring of Hydro One’s existing 230kV transmission lines between Orangeville TS (Orangeville) and Essa TS (Barrie), with a target in-service date of 2027;

•Bowmanville to Greater Toronto Area (GTA) Transmission Line, a new double-circuit 500 kV line from Bowmanville Switching Station (SS) to an existing 500 kV station in the GTA with a target in-service in the early 2030s;

•Windsor to Lakeshore Transmission Line, a new 230 kV transmission line from Lauzon Transformer Station (Windsor) to Lakeshore Transformer Station (Lakeshore) with a target in-service date of 2032; and

•Greenstone Transmission Line, a new 230 kV transmission line between Longlac TS (Geraldton) to Nipigon Generation Station and connecting into the East-West Tie near Nipigon Bay, and associated station facilities, with a target in-service in 2032.

On June 16, 2025, the Ministry announced a series of proposals to take certain actions to facilitate the timely development of several transmission projects to further the objectives outlined in the IEP.

The Ministry is proposing, subject to required approvals, to declare the five transmission projects as priority projects. The second Barrie to Sudbury Transmission Line is not being proposed to be declared priority at this time.

The Ministry is also proposing to bring forward Orders in Council (to be recommended by the Minister of Energy and Mines (Minister)) and 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 Barrie to Sudbury Transmission Line, the Bowmanville to GTA Transmission Line and the Greenstone Transmission Line, and to undertake development work on the second Barrie to Sudbury Transmission Line. The Minister had previously, on March 31, 2022, directed the OEB to amend Hydro One Networks’ licence to require it to develop and seek approvals for the Windsor to Lakeshore Transmission Line. The Orangeville to Barrie Reconductoring Project does not require designation because this project relates to existing Hydro One Networks transmission infrastructure. The consultation period for the proposals announced on June 16, 2025 closes on August 15, 2025.

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 Networks intends to submit an application to be included in the TSF Registry.

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.

Northern Ontario Voltage Study

In December 2023, the IESO published its Northern Ontario Voltage Study Report (Bulk System Reactive Requirements in Northern Ontario) (the Study), which recommended installation of reactive compensation devices at several stations in Northern Ontario to address both current and future system conditions that are expected once new Northern transmission lines are in-service. This study includes projects being developed by Hydro One, including: the East-West Tie Station Expansion, the Waasigan Transmission Line, the Northeast Power Line (previously referred to as the Hanmer to Mississagi Line), and the North Shore Link (previously referred to as Mississagi to Third Line Line).

In March 2024, the Company received a letter from the IESO recommending Hydro One proceed with the implementation of the reactive devices, in line with the timelines identified by the IESO. The Company has reviewed and assessed the results of the Study and recommendation from the IESO and has incorporated them into the associated projects so as to meet the timelines identified by the IESO.

13

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

Supporting Critical Transmission Infrastructure in Northeastern and Eastern Ontario

On July 10, 2023, the Ministry (formerly the Ministry of Energy) announced a proposal to take certain actions to facilitate the timely development of three transmission projects across Northeastern and Eastern Ontario: North Shore Link, Northeast Power Line, 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 these three priority transmission line 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 these projects in accordance with the recommendations of the IESO.

On August 1, 2024, the Ministry announced a proposal to declare the Wawa to Porcupine line as a priority project and designate Hydro One Networks, in partnership with the Wabun Tribal Council, its members and Missanabie Cree First Nation, as the transmitter. These actions are intended to facilitate the timely development of a new 230 kV, 260 km transmission line in Northeastern Ontario from the Wawa Transformer Station (south of Wawa) to the Porcupine Transformer Station (Timmins area); based on IESO forecasts, the government has identified a targeted in-service date of 2030; planned development work will inform the final construction schedule. The proposal was open for a 45 day consultation period ending September 15, 2024. On November 28, 2024, the Minister directed the OEB to amend Hydro One Networks’ transmission license to require it to develop and seek approvals for this project. On December 23, 2024, further to the Minister’s Directive, the OEB amended Hydro One Networks’ electricity transmission licence to allow it to develop and seek approvals for this Project in accordance with the recommendations of the IESO.

Collective Agreements

On May 4, 2025, Hydro One Inc. reached tentative renewal agreements with the PWU for both its main collective agreement and its Customer Service Operations (CSO) collective agreement which merges the two agreements into one. On June 2, 2025, the agreement was ratified by the PWU membership for a term from October 1, 2025, to March 31, 2028. Hydro One’s current collective agreement with the Society of United Professionals (Society) will expire on September 30, 2025. Bargaining to renew the Society collective agreement began on June 17, 2025 and is ongoing.

The construction building trade unions have collective agreements with the Electrical Power Systems Construction Association (EPSCA). EPSCA is an employers’ association of which Hydro One is a member. All 20 of the EPSCA construction collective agreements, which bind Hydro One, expired on April 30, 2025. EPSCA negotiated five-year renewal agreements, covering the period from May 1, 2025 to April 30, 2030, for all 20 collective agreements.

Bill 2, Protect Ontario Through Free Trade Within Canada Act, and Bill 5, Protect Ontario by Unleashing our Economy Act

On April 16, 2025, the Ontario Government introduced Bill 2, Protect Ontario Through Free Trade Within Canada Act, 2025. The legislation enables the province to, among other things, enter into mutual recognition agreements with other provinces to remove internal trade barriers in the movement of goods, services, and labour.

On April 17, 2025, the Government introduced Bill 5, the Protect Ontario by Unleashing our Economy Act, which aims to streamline the permitting and authorization process for certain projects, including major infrastructure, including thorough proposed changes to the environmental permitting process in Ontario.

These Bills received Royal Assent on June 5, 2025. The Company is assessing the potential impacts of this legislation and associated regulations on Hydro One.

Sustainability Report

The Hydro One 2024 Sustainability Report entitled “A Better and Brighter Future For All” is available on the Company’s website atwww.hydroone.com/sustainability.

The 2024 Sustainability Report highlights the alignment of sustainability with Hydro One’s refreshed corporate strategy to enable the Company to continue to deliver for its customers and all Ontarians. The report discloses the Company’s performance across a range of environmental, social and governance measures from January 1, 2024 to December 31, 2024.

14

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

HYDRO ONE BOARD OF DIRECTORS AND EXECUTIVE OFFICERS

Board of Directors

Effective March 24, 2025, Timothy Hodgson, then Chair of the Board of Directors, commenced an unpaid leave of absence to pursue candidacy in the federal election. The board appointed Susan Wolburgh Jenah as Interim Chair on the same date.

On April 28, 2025, Mr. Hodgson formally resigned from the Board of Directors.

Subsequently, the Board appointed Melissa Sonberg as Chair of the Board, with the appointment taking effect on June 4, 2025.

Director Cherie Brant did not stand for re-election at the Annual and Special Meeting of Shareholders on June 24, 2025.

Executive Officers

Effective February 18, 2025, Gillian Whitebread joined Hydro One as Executive Vice President (EVP), Head of Human Resources. On the same day, Megan Telford’s title became EVP, Strategy and Energy Transition.

Effective July 21, 2025, Megan Telford was appointed as Chief Operating Officer, and Lisa Pearson was appointed as EVP, Corporate Affairs.

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.

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 GAAP (reported) results to non-GAAP (adjusted) results on a consolidated basis.

	Three months ended June 30		Six months ended June 30
(millions of dollars)	2025	2024	2025	2024
Net cash from operating activities	605	746	1,115	1,208
Changes in non-cash balances related to operations	14	(221)	192	(77)
Distributions to noncontrolling interest	(2)	(2)	(7)	(6)
FFO	617	523	1,300	1,125

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, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023
Revenues	2,066	2,408	2,095	2,192	2,031	2,166	1,979	1,934
Less: Purchased power	899	1,220	1,060	1,047	940	1,096	990	854
Revenues, net of purchased power	1,167	1,188	1,035	1,145	1,091	1,070	989	1,080

Quarter ended (millions of dollars)	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023
Distribution revenues	1,434	1,761	1,583	1,551	1,436	1,605	1,459	1,329
Less: Purchased power	899	1,220	1,060	1,047	940	1,096	990	854
Distribution revenues, net of purchased power	535	541	523	504	496	509	469	475

15

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

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, 2025	Dec 31, 2024
Short-term notes payable	1,371	200
Less: cash and cash equivalents	(71)	(716)
Long-term debt (current portion)	900	1,150
Long-term debt (long-term portion)	15,830	16,329
Net Debt	18,030	16,963

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, 2025	Dec 31, 2024
Net debt (A)	18,030	16,963
Shareholders' equity (excluding noncontrolling interest)	12,390	12,089
Net debt plus shareholders' equity (B)	30,420	29,052

Net Debt-to-capitalization ratio (A/B) 59.3 % 58.4 %

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, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023
Annualized FFO (A)	2,450	2,356	2,275	2,238	2,221	2,256	2,150	2,108
Net Debt (B)	18,030	17,615	16,963	16,679	16,308	16,016	15,610	15,370

Annualized FFO to Net Debt (A/B) 13.6 % 13.4 % 13.4 % 13.4 % 13.6 % 14.1 % 13.8 % 13.7 %

16

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

Earnings Coverage Ratio

Earnings coverage ratio is defined as earnings before income taxes and financing charges 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, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023
Net income attributable to common shareholders	327	358	200	371	292	293	181	357
Income tax expense	61	68	17	56	57	51	13	36
Financing charges	169	163	158	158	157	148	147	143
Earnings before income taxes and financing charges attributable to common shareholders	557	589	375	585	506	492	341	536

Twelve months ended (millions of dollars)	Jun 30, 2025	Dec 31, 2024
Earnings before income taxes and financing charges attributable to common shareholders (A)	2,106	1,958

Quarter ended (millions of dollars)	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023
Financing charges	169	163	158	158	157	148	147	143
Capitalized interest	27	24	24	24	22	19	19	20
Financing charges and capitalized interest	196	187	182	182	179	167	166	163

Twelve months ended (millions of dollars)	Jun 30, 2025	Dec 31, 2024
Financing charges and capitalized interest (B)	747	710
Earnings coverage ratio = A/B	2.8	2.8

RELATED PARTY TRANSACTIONS

The Province is a shareholder of Hydro One with approximately 47.1% ownership as at June 30, 2025. The Ministry of Infrastructure (MOI) is a related party to Hydro One because it is 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 of Energy and Mines. 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, 2025 and 2024:

(millions of dollars)		Three months ended June 30		Six months ended June 30
Related Party	Transaction	2025	2024	2025	2024
Province	Dividends paid	94	89	182	173
MOI	Broadband subsidy1	6	—	19	—
IESO	Power purchased	456	482	1,374	1,301
	Revenues for transmission services	613	579	1,234	1,129
	Amounts related to electricity rebates	233	280	508	607
	Distribution revenues related to rural rate protection	64	63	127	126
	Distribution revenues related to Wataynikaneyap Power LP	33	30	66	60
	Distribution revenues related to supply of electricity to remote northern communities	13	12	25	24
	Funding received related to Conservation and Demand Management programs	—	1	—	1
OPG	Power purchased	3	5	14	11
	Transmission revenues related to provision of services and supply of electricity	—	—	1	1
	Distribution revenues related to provision of services and supply of electricity	1	2	4	3
	Other revenues related to provision of services and supply of electricity	1	1	1	1
	Capital contribution received from OPG	6	—	16	1
	Costs related to the purchase of services	1	—	1	—
OEFC	Power purchased from power contracts administered by the OEFC	—	1	1	1
OEB	OEB fees	3	3	6	6

1 See section “Building Broadband Faster Act, 2021”.

17

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

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 2024 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, 2025 that materially affected, or are reasonably likely to materially affect, the Company’s disclosure controls and procedures and internal control over financial reporting.

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:

Accounting Guidance To Be Adopted in 2025

Guidance	Date issued	Description	ASU Effective Date	Impact on Hydro One
ASU 2024-02	March 2024	The amendments contain modifications to the codification that remove various concept statements which may be extraneous and not required to understand or apply the guidance or references used in prior statements to provide guidance in certain topical areas.	Fiscal years beginning after December 15, 2024.	No impact upon adoption
ASU 2023-09	December 2023	The amendments address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information.	Annual periods beginning after December 15, 2024.	Under assessment

18

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

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 (VIE) is acquired through the exchange of equity interests.	Annual and interim periods beginning after December 15, 2026.	Under assessment
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.	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, 2025 and December 31, 2024 and for the three and six months ended June 30, 2025 and June 30, 2024 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
	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
Revenue	206	189	—	—	2,343	2,263	(483)	(421)	2,066	2,031
Net Income (Loss) Attributable to Common Shareholders	213	190	—	—	568	491	(454)	(389)	327	292

19

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

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
	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
Revenue	394	367	—	—	5,002	4,650	(922)	(820)	4,474	4,197
Net Income (Loss) Attributable to Common Shareholders	409	368	—	—	1,141	982	(865)	(765)	685	585

As at June 30, 2025 and December 31, 2024 (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. 2025	Dec. 2024	Jun. 2025	Dec. 2024	Jun. 2025	Dec. 2024	Jun. 2025	Dec. 2024	Jun. 2025	Dec. 2024
Current Assets	940	953	—	—	3,514	4,229	(2,870)	(3,065)	1,584	2,117
Non-Current Assets	3,264	3,226	—	—	55,992	54,743	(23,027)	(23,404)	36,229	34,565
Current Liabilities	1,062	1,061	—	—	6,138	5,468	(2,834)	(3,028)	4,366	3,501
Non-Current Liabilities	425	425	—	—	35,822	36,291	(15,280)	(15,708)	20,967	21,008

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 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; the Company’s maturing debt; the Company’s ongoing and planned projects, initiatives and expected capital investments, including expected approvals, results, costs, funding sources and in-service and completion dates; expectations regarding the Company’s Z-Factor application and impacts of its outcome; contractual obligations and other commercial commitments; the BBFA and expected impacts; expectations regarding the Ministry of Infrastructure’s subsidies program to ISPs and its results; the Company’s assessment of recovery and impacts related to the OEB-established generic variance and deferral accounts; expected impacts of the OEB’s new cost of capital parameters; future pension plan contributions, including estimates of total Company pension contributions; the expected results of the Province’s first integrated energy plan; collective agreements and bargaining; Protect Ontario by Unleashing our Economy Act and expected impacts; the Company’s expectations regarding submitting an application to be included in the TSF Registry; dividends; non-GAAP financial measures; internal controls over financial reporting and disclosure; the MTN Program; the Universal Base Shelf Prospectus; the US Debt Shelf Prospectus; 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

20

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

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;

•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 operational technology (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.

21

HYDRO ONE LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS(continued)

For the three and sixmonthsended June 30, 2025 and 2024

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

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