Suppliers, vendors, contractors, and information technology providers have access to systems
that support our operations and maintain customer and employee data. A breach of these third-party systems could adversely affect the business as if it was a breach of our own system. Also, because our generation and distribution systems are part of
an interconnected system, a disruption caused by a cyber incident at another utility, electric generator, system operator, or commodity supplier could also adversely affect our business, operating results, and financial condition.
In addition, our generation plants, our electrical distribution facilities, and our gas pipeline and storage facilities, in particular, may be
targets of physical security threats or terrorist activities that could disrupt our ability to produce or distribute some portion of our products. We have increased security as a result of past events and may be required by regulators or by the
future threat environment to make investments in security that we cannot currently predict.
Failure to maintain the security of
personally identifiable information could adversely affect us.
In connection with our business, we collect and retain personally identifiable information of our customers, shareholders, and employees. Customers, shareholders, and
employees expect that we will adequately protect their personal information. The regulatory environment surrounding information security and privacy is increasingly demanding. A significant theft, loss, or fraudulent use of customer, shareholder,
employee, or Company data by cybercrime or otherwise, could adversely impact our reputation, and could result in significant costs, fines, and litigation.
Construction and capital improvements to our power facilities, distribution systems and Gas Storage and Pipelines business subject us to
risk.
We are managing ongoing, and planning future, significant construction and capital improvement projects at our multiple power generation and distribution facilities, at our gas distribution system, and at our Gas Storage and Pipelines
business. Many factors that could cause delays or increased prices for these complex projects are beyond our control, including the cost of materials and labor, subcontractor performance, timing and issuance of necessary permits or approvals
(including required certificates from regulatory agencies), construction disputes, impediments to acquiring
rights-of-way
or land rights on a timely basis and on
acceptable terms, cost overruns, and weather conditions. Failure to complete these projects on schedule and on budget for any reason could adversely affect our financial performance, operations, or expected investment returns at the affected
facilities, businesses and development projects.
Operation of a nuclear facility subjects us to risk.
Ownership of an
operating nuclear generating plant subjects us to significant additional risks. These risks include, among others, plant security, environmental regulation and remediation, changes in federal nuclear regulation, increased capital expenditures to
meet industry requirements, and operational factors that can significantly impact the performance and cost of operating a nuclear facility compared to other generation options. Insurance maintained by us for various nuclear-related risks may not be
sufficient to cover our costs in the event of an accident or business interruption at the nuclear generating plant, which may affect our financial performance.
In addition, our nuclear decommissioning trust fund, to finance the
decommissioning of the nuclear generating plant, may not be sufficient to fund the cost of decommissioning. A decline in market value of assets held in decommissioning trust funds due to poor investment performance or other factors may increase the
funding requirements for these obligations. Any increase in funding requirements may have a material impact on our liquidity, financial position, or results of operations.
The supply and/or price of energy commodities and/or related services may impact our financial results.
We are dependent on coal
for much of our electrical generating capacity as well as uranium for our nuclear operations. Our access to natural gas supplies is critical to ensure reliability of service for utility gas customers. Our
non-utility
businesses are also dependent upon supplies and prices of energy commodities and services. Price fluctuations, fuel supply disruptions and changes in transportation costs could have a negative
impact on the amounts we charge utility customers for electricity and gas and on the profitability of our
non-utility
businesses. Our hedging strategies and regulatory recovery mechanisms may be insufficient
to mitigate the negative
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