The companies face risks related to obtaining rate relief for various costs (fuel, operating, etc.), customer demand fluctuations (weather, energy efficiency), fuel price volatility, regulatory approvals for projects, tax code changes, and potential environmental remediation costs. Litigation, cybersecurity threats, and counterparty credit risk are also mentioned. Pension and OPEB plan costs, and employee-related benefit costs are also potential risks.
Financial Upside
The companies anticipate increased revenues from higher rate bases, investments in renewable energy, and potential tax benefits from renewable tax credits. They also expect higher cash flows from operating activities due to these factors. New customer agreements and potential grant funding for projects are also positive factors.
