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Hydro One pays a $5 million annual fee to the OEFC for indemnification against adverse claims in excess of $10 million paid by the OEFC with respect to certain of Ontario Hydro’s businesses transferred to Hydro One on April 1, 1999. 

PILs and payments in lieu of property taxes are paid to the OEFC, and dividends are paid to the Province. 

Sales to and purchases from related parties occur at normal market prices or at a proxy for fair value based on the requirements of the OEB’s Affiliate Relationships Code. Outstanding balances at period end are interest free and settled in cash. 

At December 31, 2013, the Company held $250 million in Province of Ontario Floating-Rate Notes with a fair value of $251 million (2012 – $251 million). 

The amounts due to and from related parties as a result of the transactions referred to above are as follows: 

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1  Included in due to related parties at December 31, 2013 are amounts owing to the IESO in respect of power purchases of $217 million (2012 – $199 million). 

## 21. CONSOLIDATED STATEMENTS OF CASH FLOWS 

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

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## Capital Expenditures 

The following table illustrates the reconciliation between investments in property, plant and equipment and the amount presented in the Consolidated Statements of Cash Flows after factoring in the net change in related accruals: 

<img src='content_image/289819.jpg'>

