PG&E 2008 Annual Report Download - page 39

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• 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, the Utility, and counter-
parties to access capital markets and other sources of credit
in a timely manner on acceptable terms, especially given
the recent deteriorating conditions in the economy and
fi nancial markets;
• 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 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 in
the section entitled “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 other factors.
• 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,
including the ability of the Utility and its counterparties
to post or return collateral;
• 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 Diablo Canyon, the availability
of nuclear fuel, 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 savings it has
recognized from operating effi ciencies it has achieved, and
identify and successfully implement additional sustainable
cost-saving measures;
• whether the Utility incurs substantial expense to
improve the safety and reliability of its electric and
natural gas 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;