1006402--2/8/2007--CE_CASECNAN_WATER_&_ENERGY_CO_INC

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{operation, natural, condition}
{regulation, change, law}
{customer, product, revenue}
The Company is dependent upon a single customer for substantially all of its operating revenue. Company assets are subject to significant operating uncertainties. Variability in rainfall and water flows have a significant impact on Company operating revenue. Company assets are subject to potentially catastrophic geologic or environmental risks. The Company is subject to risk of loss from civil strife, acts of war, terrorist activities, adverse changes in monetary exchange rates, changes in law, policies or regulation, including tax law, or failure to timely obtain necessary approvals or permits and other risks arising from foreign sovereignty over areas in which the Company conducts operations.

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