Mr. Omar Javed reports

HYDRO ONE INC. PRICES OFFERING OF $800 MILLION MEDIUM TERM NOTES UNDER SUSTAINABLE FINANCING FRAMEWORK

Hydro One Ltd.'s wholly owned subsidiary, Hydro One Inc., has priced an offering of $800-million of medium-term notes consisting of $550-million aggregate principal amount of 4.39 per cent medium term notes, Series 59, due 2034, and the additional offering of $250-million aggregate principal amount of its 3.93 per cent medium-term notes, Series 53, due 2029. The Series 59 notes will be issued at a price of $99.943 per $100 principal amount, and the additional Series 53 notes will be issued at a price of $99.162 per $100 principal amount plus accrued interest.

The net proceeds from the issuance of the notes (excluding any accrued interest paid to Hydro One Inc. in connection with the reopening of the Series 53 notes) will be approximately $794.5-million. The offering of the notes is expected to close on Jan. 12, 2024. Upon completion of the offering of the notes (after giving effect to the offering of additional Series 53 notes), there will be $550-million aggregate principal amount of Series 53 notes outstanding and $550-million aggregate principal amount of Series 59 notes outstanding.

The offering of notes represents the additional issuance of medium-term notes pursuant to Hydro One's Sustainable Financing Framework dated Jan. 23, 2023. Hydro One Inc. intends to allocate an amount equal to the net proceeds from the sale of the Series 53 notes to finance and/or refinance, in whole or in part, new and/or existing eligible green and social projects that meet the eligibility criteria described in the framework and an amount equal to the net proceeds from the sale of the Series 59 notes to finance and/or refinance, in whole or in part, new and/or existing eligible green projects that meet the eligibility criteria described in the framework. Prior to such allocation, the net proceeds may be initially used, in part or in full, for repayment of indebtedness or investments in bank deposits or other cash equivalents, in each case in accordance with Hydro One's internal liquidity management policies. Although Hydro One Inc. intends to allocate an amount equal to the net proceeds from the sale of the Series 53 notes to eligible green and social projects under the framework and an amount equal to the net proceeds from the sale of the Series 59 notes to eligible green projects under the framework, as the case may be, it will not be an event of default under the trust indenture governing the applicable notes if the company fails to do so.

The notes are being offered on a best effort basis in each of the provinces of Canada through a syndicate of agents. The notes are being offered pursuant to a short form base shelf prospectus of Hydro One Inc. dated June 3, 2022. Hydro One Inc. will be filing pricing supplements to the base shelf prospectus relating to the offering of each series of notes with the securities regulatory authorities in each of the provinces of Canada. The pricing supplements and accompanying base shelf prospectus contain important detailed information about each series of notes being offered. Copies of the pricing supplements relating to each series of notes and the accompanying base shelf prospectus relating to each series of notes may be obtained over the Internet under Hydro One Inc.'s profile at the Canadian Securities Administrators' website at SEDAR+. Investors should read the pricing supplements and accompanying base shelf prospectus before making an investment decision.

Hydro One, through its wholly owned subsidiaries, is Ontario's largest electricity transmission and distribution provider with approximately 1.5 million valued customers, approximately $31.5-billion in assets as at Dec. 31, 2022, and annual revenues in 2022 of approximately $7.8-billion. Its team of approximately 9,300 skilled and dedicated employees proudly build and maintain a safe and reliable electricity system, which is essential to supporting strong and successful communities. In 2022, Hydro One invested approximately $2.1-billion in its transmission and distribution networks, and supported the economy through buying approximately $1.9-billion of goods and services. It is committed to the communities where it lives and works through community investment, sustainability and diversity initiatives. It is designated as a sustainable electricity leader by Electricity Canada. Hydro One's common shares are listed on the Toronto Stock Exchange, and certain of Hydro One's medium-term notes are listed on the New York Stock Exchange.

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