PG&E 2007 Annual Report Download - page 39

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“would,” “could,” “goal,” “potential,” and similar expressions.
PG&E Corporation and the Utility are not able to predict all
the factors that may affect future results. Some of the factors
that could cause future results to differ materially from those
expressed or implied by the forward-looking statements, or
from historical results, include, but are not limited to:
• the Utility’s ability to manage capital expenditures and
operating costs within authorized levels and recover costs
through rates in a timely manner;
• the outcome of regulatory proceedings, including pend-
ing and future ratemaking proceedings at the CPUC and
the FERC;
• the adequacy and price of electricity and natural gas sup-
plies, and the ability of the Utility to manage and respond
to the volatility of the electricity and natural gas markets;
• the effect of weather, storms, earthquakes, fi res, fl oods,
disease, other natural disasters, explosions, accidents,
mechanical breakdowns, acts of terrorism, and other events
or hazards on the Utility’s facilities and operations, its
customers, and third parties on which the Utility relies;
• the potential impacts of climate change on the Utility’s
electricity and natural gas businesses;
• changes in customer demand for electricity and natural gas
resulting from unanticipated population growth or decline,
general economic and fi nancial market conditions, changes
in technology, including the development of alternative
energy sources, or other reasons;
• operating performance of the Utility’s Diablo Canyon
nuclear generating facilities (“Diablo Canyon”), the
occurrence of unplanned outages at Diablo Canyon, or
the temporary or permanent cessation of operations at
Diablo Canyon;
• whether the Utility can maintain the cost effi ciencies it has
recognized from its completed initiatives to improve its
business processes and customer service, improve its perfor-
mance following the October 2007 implementation of new
work processes and systems, and identify and successfully
implement additional cost-saving measures;
• whether the Utility incurs substantial unanticipated expense
to improve the safety and reliability of its electric and
natural gas distribution systems;
• whether the Utility achieves the CPUC’s energy effi ciency
targets and recognizes any incentives the Utility may earn
in a timely manner;
• the impact of changes in federal or state laws, or their
interpretation, on energy policy and the regulation of
utilities and their holding companies;
• the impact of changing wholesale electric or gas market
rules, including new rules of the California Independent
System Operator (“CAISO”) to restructure the California
wholesale electricity market;
• how the CPUC administers the conditions imposed on
PG&E Corporation when it became the Utility’s holding
company;
• the extent to which PG&E Corporation or the Utility
incurs costs and liabilities in connection with litigation
that are not recoverable through rates, from insurance,
or from other third parties;
• the ability of PG&E Corporation and/or the Utility
to access capital markets and other sources of credit
in a timely manner on favorable terms;
• the impact of environmental laws and regulations
and the costs of compliance and remediation;
• the effect of municipalization, direct access, community
choice aggregation, or other forms of bypass; and
• the impact of changes in federal or state tax laws, policies,
or regulations.
For more information about the more signifi cant risks
that could affect the outcome of these forward-looking
statements and PG&E Corporation’s and the Utility’s
future fi nancial condition and results of operations, see the
discussion under the heading “Risk Factors” below. PG&E
Corporation and the Utility do not undertake an obligation
to update forward-looking statements, whether in response to
new information, future events, or otherwise.