* Q2 profit falls 16 pct
* Revenue rises 3 pct to C$1.09 bln
Aug 12 (Reuters) - Ontario utility Hydro One [HYDRO.UL] posted a 16 percent fall in its second-quarter profit, hurt by higher costs incurred to sustain transmission and distribution systems.
For the quarter ended June 30, the provincially owned electricity transmission company reported net income of C$82 million, down from C$98 million in the same quarter last year.
Quarterly revenue rose 3 percent to C$1.09 billion.
Operating costs increased 10 percent to C$281 million.
Costs related to expand its transmission system rose primarily due to a number of significant inter-area network upgrade projects facilitating new generation or increased transfer capability from other jurisdictions, the company said in a statement. (Reporting by R. Manikandan in Bangalore; Editing by Maju Samuel)