885568--3/20/2008--OLD_DOMINION_ELECTRIC

related topics

{cost, regulation, environmental}

{capital, credit, financial}

{loss, insurance, financial}

{debt, indebtedness, cash}

{customer, product, revenue}

We rely substantially on purchases of energy from other power suppliers. Changes in fuel and purchased power costs could increase our operating costs. Regulation of carbon emissions and other greenhouse gases may significantly increase our costs and result in our purchasing additional energy in the market. Adverse changes in our credit ratings could negatively impact our ability to access capital and may require us to provide credit support for some of our obligations. Adverse changes in the credit ratings of entities providing credit support to our obligations under a lease of our interest in Clover Unit 1 could require us to replace this credit support during a period in which extension of credit by highly rated financial institutions may be difficult or costly to obtain and could require the purchase of a substantial amount of qualifying securities. Other Environmental regulation may limit our operations or increase our costs or both. Our financial condition is largely dependent upon our members. The use of hedging instruments could impact our liquidity. Counterparties under power purchase arrangements may fail to perform their obligations to us. We are subject to risks associated with owning an interest in a nuclear generation facility.

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885568--3/20/2008--OLD_DOMINION_ELECTRIC_COOPERATIVE