110019--3/30/2006--NORTHWEST_PIPELINE

related topics

{capital, credit, financial}

{cost, regulation, environmental}

{gas, price, oil}

{regulation, change, law}

{financial, litigation, operation}

{debt, indebtedness, cash}

{acquisition, growth, future}

{operation, natural, condition}

{system, service, information}

{operation, international, foreign}

{tax, income, asset}

{interest, director, officer}

{cost, operation, labor}

{competitive, industry, competition}

{regulation, government, change}

Risks Inherent to our Industry and Business Decreases in the volume of natural gas contracted or transported through our pipeline system for any of the reasons described below will adversely affect our business. Expiration of firm transportation agreements. Decreases in natural gas production. Decreases in demand of natural gas. Our transporting activities involve numerous risks that might result in accidents and other operating risks and costs Costs of environmental liabilities and complying with existing and future environmental regulations could exceed our current expectations. Risks Related to Strategy and Financing Our debt agreements impose restrictions on us that may adversely affect our ability to operate our business. Our lack of investment grade credit ratings increases our costs of doing business in many ways and increases our risks from market disruptions and further credit downgrades. Williams can exercise substantial control over our dividend policy and our business and operations and may do so in a manner that is adverse to our or your interests. The financial condition and liquidity of Williams affects our access to capital, our credit standing and our financial condition. Despite Williams restructuring efforts, we may not attain investment grade ratings We are exposed to the credit risk of our customers in the ordinary course of our business. Risks Related to Regulations that Affect our Industry Our transmission and storage operations are subject to government regulations and rate proceedings that could have an adverse impact on the profitability of these operations. The outcome of pending rate cases to set the rates we can charge customers on our pipeline might result in rates that lower our return on the capital that we have invested in our pipeline. Legal and regulatory proceedings and investigations relating to the energy industry and capital markets have adversely affected our business and many continue to do so. Risks Related to Accounting Standards Potential changes in accounting standards might cause us to revise our financial results and disclosure in the future, which might change the way analysts measure our business or financial performance. Risks Related to Employees, Outsourcing of Non-Core Support Activities. Institutional knowledge residing with current employees or former Williams employees now employed by Williams outsourcing service providers might not be adequately preserved. Failure of the outsourcing relationship might negatively impact our ability to conduct our business. Williams ability to receive services from outsourcing provider locations outside of the United States might be impacted by cultural differences, political instability, or unanticipated regulatory requirements in jurisdictions outside the United States.

Full 10-K form ▸

110019--3/30/2006--NORTHWEST_PIPELINE_CORP