Exhibit 3 Objectives-Impact Matrix Objective Attribute Event 5 Worst Case 4 Severe 3 Major 2 Moderate 1 Minor Net Income Net Income Shortfall (after tax, in one year) >$150M $75M$150M $25M$75M $5M$25M <$5M Credit Worthiness Change in financial ratios or risk Event of default; Unable to raise any capital due to credit rating. Credit rating downgrade to below investment grade; Unable to raise full amount required capital. Credit rating downgrade. Hydro One Inc. put on credit "watch". Credit rating agencies and FINANCIAL bondholders express concern. Value of the Enterprise Loss in Value of Hydro One Loss of >25% Value Loss of 1025% Value Loss of 5-10% Value Loss of 1-5% Value Loss of <1% Value Public Profile Negative media attention; Opinion leader and public Criticism National media attention; Opinion leaders/customers nearly unanimous in public criticism. Provincial media attention; Most opinion leaders/ customers publicly critical. Significant local attention; Several opinion leaders/ customers publicly critical. Letter(s) to Minister of Energy. Letter(s) to Senior Management. REPUTATION Shareholder confidence Owner/ shareholder involvement in Hydro One operations Complete loss of confidence; CEO and Board replaced by the owner. Extensive loss of confidence; CEO or several Sr. Managers replaced. Credit Rating agencies and bondholders express concern. Confidence in question; owner requests significant changes to business plan. Some concern with management decisions; occasional requests from owner for details. Employee confidence Employee Dissatisfaction Widespread departures of key staff with scarce skills or knowledge. Sharp, sustained drop in employee survey results; departures of key staff with scarce skills or knowledge. Sharp decline in employee survey results; sharp increase in grievances. Modest decline in employee survey results; modest increase in grievances. Less than planned improvements in employee survey results. REGULATORY RELATIONSHIP Meet License Conditions Loss of Credibility with Regulators General loss of Credibility; Intrusive Involvement. Some loss of Credibility; Excessive Involvement. Some Concerns re: Competence; Difficult Demands. Increase in Reporting Detail and Frequency. Balanced; some challenges. Reliable Delivery of Electricity Outages on the Hydro One system Outage affects: >100,000 Customers Distribution or >1000MW Transmission for more than seven days. Outage affects: 40k-100k Customers Distribution or 4001000 MW Transmission for 47 days. Outage affects: 10k40k Customers Distribution or 100400MW Transmission for 24 days. Outage affects: 1k10k Customers Distribution or 10100MW Transmission for 424 hrs. Outage affects: <1000 customers distribution or <10mw transmission for <4 hrs. oeb service quality indices failure to meet achieve 25% of overall expected performance. 67% 80% 90% 95% direct customers, local companies, generators increase in customer dissatisfaction with hydro one numerous initiate action such as bypass relocation; ldcs default on bill payments; generator reluctance locate ontario leads shortages. exponential lawsuits and collateral damage believed be caused by one; complaints provincial government dramatically. associations step up lobbying efforts stricter penalties against one. "large" experiences significant production losses due actions inaction; high level (ceo, coo, etc.) calls ceos office.number>50%) increase in call centre volumes and complaints received by field staff. Call centre volumes increase noticeably (25%); noticeable increase in complaints received by field staff. Sharp deterioration in customer satisfaction as per survey responses. Moderate deterioration in customer satisfaction as per survey responses. Unit Cost Reduction Failure to Reduce Unit Costs (incl. overhead & non-billable time) Unit Costs increase by >25% Unit Costs increase by 15% 25% Unit Costs increase by 10% - 15% Unit Costs increase by 5% 10% Unit costs not reduced COMPETITIVENESS Work Program Accomplishment Work Program Shortfall >10 Critical Projects late or; <50% of noncritical work completed. 5-10 Critical Projects late or 50%70% of noncritical work completed. 35 Critical Projects late or 70%85% of non critical work completed. 1-3 Critical Projects late or >85% of non critical work completed. No Critical Projects late >85% of non critical work completed. Employee: Workforce Availability/ Safety Change in availability (%) in one year; Accident Severity Rate. Key functions/locations unavailable > 1 week; Employee fatality or major permanent disability. Key functions/locations unavailable > 1day; Employee critical injury. Accident Severity Rate > 50% above target. Accident Severity Rate > 25% above target. Accident Severity Rate above target. Environmental Performance Adverse Environmental Impact Widespread offsite impacts e.g., regional or municipal water supply. Multiple local offsite impacts e.g., multiple residential properties or private water supplies. Significant local offsite impact e.g., a public thoroughfare; Significant spill/release with impact on Hydro One Inc. property only Minor local offsite impact e.g., a single residential property or private water supply). Minor impact on Hydro One Inc. property only. SAFETY AND ENVIRONMENT Public Safety Public Injuries with Hydro One at fault. Fatality or major permanent disability. Significant increase in number of injuries. Moderate increase in number of injuries. Small increase in number of injuries. No change. Source:

Read the case study: Pay specific attention to Exhibit 3 on p.14 of the case study as it provides a breakdown of Hydro One's Objectives, Key Performance Indicators (KPI's), Risk Events and scaled Impact Descriptions. NB: Note the link from Objective to KPI to Risk Event in Exhibit 3. Replicate Exhibit 3 for your organisation, department or unit (as chosen above) by doing the following: 2.On Template E, there are three worksheets Complete the following on each sheet. Objective-Impact Matrix (40) Identify and describe your Organisation/Department/Unit's Objectives and Key Performing Indicators (KPI's). For each Objective, list the potential RISKS (future events or change incircumstances) that may prevent your organisation/department/unit from achieving the