Allegheny Power 2010 Annual Report Download - page 29

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14
• our profitability is impacted by our affiliated companies’ continued authorization to sell power at market-based
rates;
• there are uncertainties relating to our participation in RTOs;
• a significant delay in or challenges to various elements of ATSI’s consolidation into PJM, including but not
limited to, the intervention of parties to the regulatory proceedings could have a negative impact on our results
of operations and financial condition;
• energy conservation and energy price increases could negatively impact our financial results;
• our business and activities are subject to extensive environmental requirements and could be adversely affected
by such requirements;
• the EPA is conducting NSR investigations at a number of our generating plants, the results of which could
negatively impact our results of operations and financial condition;
• costs of compliance with environmental laws are significant, and the cost of compliance with future
environmental laws, including limitations on GHG emissions could adversely affect cash flow and profitability;
• the physical risks associated with climate change may impact our results of operations and cash flows;
• remediation of environmental contamination at current or formerly owned facilities;
• availability and cost of emission credits could materially impact our costs of operations;
• mandatory renewable portfolio requirements could negatively affect our costs;
• we are and may become subject to legal claims arising from the presence of asbestos or other regulated
substances at some of our facilities;
• the continuing availability and operation of generating units is dependent on retaining the necessary licenses,
permits, and operating authority from governmental entities, including the NRC;
• future changes in financial accounting standards may affect our reported financial results;
• increases in taxes and fees;
• interest rates and/or a credit rating downgrade could negatively affect our financing costs, our ability to access
capital and our requirement to post collateral;
• we must rely on cash from our subsidiaries and any restrictions on our utility subsidiaries’ ability to pay
dividends or make cash payments to us may adversely affect our financial condition;
• we cannot assure common shareholders that future dividend payments will be made, or if made, in what
amounts they may be paid;
• disruptions in the capital and credit markets may adversely affect our business, including the availability and
cost of short-term funds for liquidity requirements, our ability to meet long-term commitments, our ability to
hedge effectively our generation portfolio, and the competitiveness and liquidity of energy markets; each could
adversely affect our results of operations, cash flows and financial condition; and
• questions regarding the soundness of financial institutions or counterparties could adversely affect us.