13372--3/15/2007--NSTAR_ELECTRIC_CO

related topics
{operation, natural, condition}
{cost, regulation, environmental}
{gas, price, oil}
{cost, contract, operation}
{competitive, industry, competition}
{capital, credit, financial}
{condition, economic, financial}
NSTAR Electric's operations are highly regulated, and any adverse regulatory changes could have a significant impact on the Company's results of operations and its financial position. Potential municipalization or technological developments may adversely affect our regulated electricity business. Changes in environmental laws and regulations affecting our business could increase our costs or curtail our activities. The Company may be required to conduct environmental remediation activities for power generating sites and other potentially unidentified sites. NSTAR Electric is subject to operational risk that could cause us to incur substantial costs and liabilities. Increases in interest rates due to financial market conditions or changes in our credit ratings, could have an adverse impact on our access to capital markets at favorable rates, or at all, and could otherwise increase our costs of doing business. Our business is sensitive to variations in weather and have seasonal variations. In addition, severe-storm related disasters could adversely affect the Company. Economic downturn, and increased costs of energy supply, could adversely affect energy consumption and could adversely affect our results of operation. Our electric business may be impacted if generation supply or its transmission availability is limited or unreliable.

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