784977--2/25/2010--PORTLAND_GENERAL_ELECTRIC_CO

related topics

{cost, contract, operation}

{capital, credit, financial}

{gas, price, oil}

{operation, natural, condition}

{condition, economic, financial}

{financial, litigation, operation}

{debt, indebtedness, cash}

{customer, product, revenue}

Recovery of PGE s costs is subject to regulatory review and approval, and the inability to recover costs may adversely affect the Company s results of operations. The current economic downturn has reduced the demand for electricity and has impaired the financial soundness of many customers, which has adversely affected PGE s results of operations and could continue to do so. The construction of new generating facilities, or modifications to existing facilities, is subject to risks that could result in the disallowance of certain costs for recovery in prices, reduced plant efficiency, or higher operating costs. Adverse changes in PGE s credit ratings could negatively affect its access to the capital markets and its cost of borrowed funds. Current capital and credit market conditions may adversely affect the Company s access to capital, cost of capital, and ability to execute its business plan as currently scheduled. Adverse market performance could result in reductions in the fair market value of benefit plan assets and increase the Company s liabilities related to such plans. Sustained depreciation of the fair value of the plans assets could result in significant increases in funding requirements, adversely affecting PGE s liquidity and results of operations. Market prices for power and natural gas are subject to forces that are often not predictable and which can result in price volatility, and general market disruption, adversely affecting PGE s costs and ability to manage its energy portfolio and procure required energy supply, ultimately affecting the Company s liquidity and results of operations. PGE is subject to various legal and regulatory proceedings, the outcome of which is uncertain, and resolution unfavorable to PGE could adversely affect the Company s results of operations, financial condition or cash flows. Legislative or regulatory efforts to reduce greenhouse gas emissions could lead to increased capital and operating costs and have an adverse impact on the Company s operations or results of operations. Forced outages at PGE s generating plants can increase the cost of power required to serve customers because the cost of replacement power purchased in the wholesale market generally exceeds the Company s cost of generation. Under certain circumstances, one or more of the banks participating in PGE s credit facilities could decline to fund an advance requested by the Company or could withdraw from participation in the credit facilities. Weather conditions that reduce stream flows, or unfavorable wind conditions, could adversely affect generation expected from PGE s hydro and wind resources and increase the Company s cost of generation or purchased power required to meet this energy gap. The effects of weather on electricity usage can adversely affect operating results. Measures required to comply with state and federal regulations related to emissions from thermal electric generating plants could result in increased capital expenditures and changes to PGE s operations that could increase operating costs, reduce generating capacity and adversely affect the Company s results of operations. Failure of PGE s wholesale suppliers to perform their contractual obligations could adversely affect the Company s ability to deliver electricity and increase the Company s costs. Capital expenditures and changes in operations required to comply with both existing and new environmental laws related to fish and wildlife could adversely affect PGE s results of operations. Storms and other natural disasters could damage the Company s facilities and disrupt delivery of electricity resulting in significant property loss, repair costs, and reduced customer satisfaction. PGE s business is subject to extensive regulation that affects the Company s operations and costs. PGE has an aging workforce with a significant number of employees approaching retirement age. Conditions that may be imposed in connection with the renewal of hydroelectric licenses could require large capital expenditures.

Full 10-K form ▸

784977--2/25/2010--PORTLAND_GENERAL_ELECTRIC_CO_/OR/