CenterPoint Energy 2014 Annual Report Download - page 39

fines. Also, the scope of the integrity management program and other related pipeline safety programs could be expanded in the future.
Other Risk Factors Affecting Our Businesses or Our Interests in Enable Midstream Partners, LP
We are subject to operational and financial risks and liabilities arising from environmental laws and regulations.
Our operations are subject to stringent and complex laws and regulations pertaining to the environment. As an owner or operator of natural
gas pipelines and distribution systems, electric transmission and distribution systems, and the facilities that support these systems, we must
comply with these laws and regulations at the federal, state and local levels. These laws and regulations can restrict or impact our business
activities in many ways, such as:
In order to comply with these requirements, we may need to spend substantial amounts and devote other resources from time to time to:
Failure to comply with these laws and regulations may trigger a variety of administrative, civil and criminal enforcement measures,
including the assessment of monetary penalties, the imposition of remedial actions, and the issuance of orders enjoining future operations.
Certain environmental statutes impose strict, joint and several liability for costs required to clean and restore sites where hazardous substances
have been stored, disposed or released. Moreover, it is not uncommon for neighboring landowners and other third parties to file claims for
personal injury and property damage allegedly caused by the release of hazardous substances or other waste products into the environment.
The recent trend in environmental regulation has been to place more restrictions and limitations on activities that may affect the
environment, and thus there can be no assurance as to the amount or timing of future expenditures for environmental compliance or remediation,
and actual future expenditures may be greater than the amounts we currently anticipate.
Our insurance coverage may not be sufficient. Insufficient insurance coverage and increased insurance costs could adversely impact our
results of operations, financial condition and cash flows.
We currently have general liability and property insurance in place to cover certain of our facilities in amounts that we consider appropriate.
Such policies are subject to certain limits and deductibles and do not include business interruption coverage. Insurance coverage may not be
available in the future at current costs or on commercially reasonable terms, and the insurance proceeds received for any loss of, or any damage
to, any of our facilities may not be sufficient to restore the loss or damage without negative impact on our results of operations, financial
condition and cash flows.
In common with other companies in its line of business that serve coastal regions, CenterPoint Houston does not have insurance covering its
transmission and distribution system, other than substations, because CenterPoint Houston believes it to be cost prohibitive. In the future,
CenterPoint Houston may not be able to recover the costs incurred in restoring its transmission and distribution properties following hurricanes
or other disasters through issuance of storm restoration bonds or a change in its
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restricting the way we can handle or dispose of wastes;
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limiting or prohibiting construction activities in sensitive areas such as wetlands, coastal regions, or areas inhabited by endangered
species;
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requiring remedial action to mitigate environmental conditions caused by our operations, or attributable to former operations;
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enjoining the operations of facilities with permits issued pursuant to such environmental laws and regulations; and
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impacting the demand for our services by directly or indirectly affecting the use or price of natural gas.
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construct or acquire new facilities and equipment;
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acquire permits for facility operations;
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modify or replace existing and proposed equipment; and
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clean or decommission waste disposal areas, fuel storage and management facilities and other locations and facilities.