Cornerstone Phase 4 Update for Stakeholders October 19, 2011 Customer Information System Replacement Project Update Cornerstone Phase 4 Update for Stakeholders October 19, 2011 Intent of the Presentation Provide a high level overview of why we should replace CIS? Why should we replace it now? The final numbers in terms of Total Costs and Total Benefits are still in development. Numbers (i.e. Project Cost and Benefits) will be brought forward for the May BT 1

Phase 4 – Current Status On Track Board Approval TODAY Go Live 2011 2012 2013 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Blueprint (6 months) Realization (7 months) Final Prep (5 Months) Verification and Stabilization (4 months) The CIS project is nearing the end of the Blueprint phase. The project schedule is “on track” to the baseline plan Benefits confirmation is being completed as a part of blueprint Forecast at completion remains at: $179.8M (including contingency)

Phase 4 - Project Milestones Date Description Status Implementation Kickoff June 1, 2011 Context: Officially start the implementation phase. Measure: Project team structure has been assembled. Project methodology has been documented and agreed to by all parties. Project leadership team / sponsors assign accountability to the project team. Complete Blueprint phase October 31, 2011 Context: The CIS project design has been completed. 1. Hydro One has reviewed and accepted the design documents and solution. 2. Project governance has compared the design criteria against requirements, timeline, cost and benefits and confirmed that the exit criteria to the Realization phase has been met. In-Progress Realization April 30, 2012 Context: The CIS solution development has been completed and tested. Development of solution is completed. Systems integration testing has been completed. Business processes changes have been completed. On track To complete Oct 31 On track To start Nov 1

Phase 4 - Project Milestones Date Description Status Final Preparation October 9, 2012 Context: Testing, Training and Sustainment Readiness completed Measure: User acceptance testing completed and signed off by LOB. System data conversion and migration activities have been tested / audited and confirmed ready for Go Live weekend. The Sustainment organization has signed off the Operational Readiness Tests and Commissioning final documents are completed. Training material has been developed and training is tracking to plan. Go-Live Context: Go-Live – cutover the CIS solution into production. Conversion Activities are completed in accordance with the plan Transactional activity begins within new CIS and legacy systems are moved to read only. Users are able to function within the new system. Adequate support is available to aid users through the transition. Verification and Stabilization February 15, 2013 Context: The transition to the sustainment organization for all aspects of support outlined in the services agreement with Inergi. Hydro One has completed the CIS System Acceptance. The user change management organization is in place and supporting impacted users. Inergi Commissioning final documents are completed. On track To Start May 1, 2012 On track To go Live Oct 9, 2012 On track To complete Feb 15, 2013 4

CIS Solution Overview By the Numbers 15 Current systems to be retired 40 Existing systems to be integrated with the new CIS Solution 68 Detailed Business Process Designs (BPDs) 2700 Business Requirements to be met 1500 Employees directly impacted by the transformation across Hydro One, Vertex & Inergi (11 lines of business, 27 departments) 5 5 5

CIS Business Functions Customer Information and Contact Management Conservation and Demand Management Customer Service Service Order Management Service Order and Work Management Meter Device Management Meter Data Acquisition and Storage Metering Bill Calculation and Printing Complex Billing (Interval Metered) Remittance Processing Credit and Collections Billing and Payment Wholesale Market Settlements Retailer Enrollment and Billing Retail and Wholesale Market

CIS Systems Customer Service Service Order and Work Management Telephony Web Inbound Correspondence IVR/ CTI Auto- dialler eCustomer / TOU Portal Fax Mail Email Reporting Customer Service CRM Interaction Centre iCare Exception Management Application Business Objects Work Mgmt Service Order and Work Management PCAD ORMS FMS Meter MDUS & WEB HES Business Warehouse Metering IESO MDMR Radix Billing and Payment Device Mgmt Rates and Billing Collections & Financials Billing and Payment AMI Integration EDM & Complex Billing ERP Data Marts Formatting Archiving Market Retail and Wholesale Market Intercompany Data Exchange - IDE(X) EDM

80+ Interfaces to be built and tested

Project Costs On Track