32689--3/10/2006--EMPIRE_DISTRICT_ELECTRIC_CO

related topics
{cost, regulation, environmental}
{gas, price, oil}
{operation, natural, condition}
{cost, operation, labor}
{loss, insurance, financial}
{capital, credit, financial}
{regulation, change, law}
{condition, economic, financial}
Any reduction in our credit ratings could materially and adversely affect our business, financial condition and results of operations. We are exposed to market risk in our fuel procurement strategy and may incur losses from these activities. We are subject to regulation in the jurisdictions in which we operate. A combination of increases in customer demand, decreases in output from our power plants and/or the failure of performance by purchased power contract counterparties could have a material adverse effect on our results of operations. We are exposed to increases in costs and reductions in revenue which we cannot control and which may adversely affect our business, financial condition and results of operations. We have recently experienced, and may continue to experience, coal delivery shortfalls which could require us to reduce the output of our coal-fired generating facilities and lead to increases in our fuel and purchased power costs. We are subject to environmental laws and the incurrence of environmental liabilities which may adversely affect our business, financial condition and results of operations. Future acquisitions, including the contemplated acquisition of the Missouri natural gas distribution operations of Aquila, Inc., are subject to integration and other risks.

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