The company faces risks from extensive regulation, potential rate plan failures, facility damage, cyberattacks, employee/contractor issues, environmental consequences (including climate change costs), dividend/interest dependence on subsidiaries, tax law changes, capital market access needs, wholesale energy market disruptions, commodity cost increases, health epidemics, supply chain disruptions, and inflation. Aged accounts receivables and increased interest rates also pose liquidity risks.
Financial Upside
The company anticipates gains from higher electric rate bases, new steam rate plans, investment income (especially from Mountain Valley Pipeline), and potential gains from the sale of the Clean Energy Businesses. Increased electric load and potential for new transmission projects also offer upside.
