1099534--3/7/2006--EME_HOMER_CITY_GENERATION

related topics

{cost, regulation, environmental}

{loss, insurance, financial}

{debt, indebtedness, cash}

EME Homer City's ability to make payments of lease rent under the facility leases is subject to market risks related to wholesale energy prices. EME Homer City's financial results can be affected by changes in fuel prices, fuel transportation cost increases, and interruptions in fuel supply. EME Homer City may not be able to hedge market risks effectively. EME Homer City is exposed to credit and performance risk from third parties under supply and transportation contracts. EME Homer City is subject to extensive energy industry regulation. EME Homer City is subject to extensive environmental regulation and permitting requirements that may involve significant and increasing costs. Competition could adversely affect EME Homer City's business. Restrictions in the participation agreements and facility leases limit or prohibit EME Homer City from entering into some transactions that it otherwise might enter into. Restrictions in the financing documents binding on EME Homer City and its affiliates limit the ability of EME Homer City to enter into specified transactions that it otherwise might enter into. The Homer City facilities may be affected by general operating risks and hazards customary in the power generation industry. EME Homer City may not have adequate insurance to cover all these hazards.

Full 10-K form ▸

1099534--3/7/2006--EME_HOMER_CITY_GENERATION_LP