784977--2/27/2008--PORTLAND_GENERAL_ELECTRIC_CO

related topics

{cost, contract, operation}

{operation, natural, condition}

{condition, economic, financial}

{capital, credit, financial}

{financial, litigation, operation}

{customer, product, revenue}

{cost, regulation, environmental}

PGE is subject to the risk that the OPUC will not allow sufficient recovery of the Company s costs and thus not provide a reasonable rate of return to shareholders. PGE faces regulatory and litigation risk with respect to recovery of the Company s investment in the closed Trojan Nuclear Plant. The effects of weather on electricity usage can adversely affect operating results. Unplanned 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. Weather conditions that reduce stream flows could adversely affect the Company s hydro production and increase the Company s generation or power purchase costs required to meet the shortfall. Wholesale energy markets are subject to forces that are often not predictable and which can result in price volatility, deterioration of liquidity, and general market disruption, adversely affecting PGE s costs and ability to manage its energy portfolio and procure required energy supply. Sustained downturns in the economy in its service territory could reduce demand for electricity and adversely affect the Company s results of operations. 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 the Company s operations that could increase operating costs, reduce generating capacity and adversely affect PGE s results of operations. Adverse changes in the Company s credit ratings may negatively affect its access to the capital markets and cost of funds. Failure of the Company s wholesale suppliers to perform their contractual obligations could adversely affect the Company s ability to deliver electricity and increase the Company s costs. The construction of new generating facilities, or modifications to existing facilities, may be subject to risks that result in disallowance of certain costs for recovery in prices, reduced plant efficiency, or higher operating 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. Legislative efforts to reduce carbon emissions, in response to concerns related to climate change and global warming, could lead to increased capital and operating costs and have an adverse impact on the Company s operations and operating results. PGE is subject to various legal and regulatory proceedings, the outcome of which is uncertain, and resolution adverse to PGE could adversely affect the Company s cash flows, financial condition or results of operations. 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 hydroelectric license renewals may require large capital expenditures. Storms and other natural disasters could damage the Company s facilities and disrupt its delivery of electricity resulting in significant property loss or repair costs and customer dissatisfaction. PGE is subject to political processes that may adversely affect its business.

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784977--2/27/2008--PORTLAND_GENERAL_ELECTRIC_CO_/OR/