CenterPoint Energy 2012 Annual Report Download - page 47

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25
reliance on communication between and among those components increases. Similarly, the distribution of natural gas to our
customers and the gathering, processing and transportation of natural gas from our gathering, processing and pipeline facilities,
are dependent on communications among our facilities and with third-party systems that may be delivering natural gas into or
receiving natural gas and other products from our facilities. Disruption of those communications, whether caused by physical
disruption such as storms or other natural phenomena, by failure of equipment or technology, or by manmade events, such as
cyber-attacks or acts of terrorism, may disrupt our ability to deliver electricity and gas and control these assets. Cyber-attacks
could also result in the loss of confidential or proprietary data or security breaches of other information technology systems that
could disrupt our operations and critical business functions, adversely affect our reputation, and subject us to possible legal claims
and liability, any of which could have a material adverse affect on our results of operations, financial condition and cash flows.
In addition, our electrical distribution and transmission facilities and gas distribution and pipeline systems may be targets of terrorist
activities that could disrupt our ability to conduct our business and have a material adverse affect on our results of operations,
financial condition and cash flows.
Our results of operations, financial condition and cash flows may be adversely affected if we are unable to successfully
operate our facilities or perform certain corporate functions.
Our performance depends on the successful operation of our facilities. Operating these facilities involves many risks, including:
• operator error or failure of equipment or processes;
• operating limitations that may be imposed by environmental or other regulatory requirements;
• labor disputes;
• information technology system failures; and
• catastrophic events such as fires, earthquakes, explosions, floods, droughts, hurricanes, pandemic health events or other
similar occurrences.
Such events may result in a decrease or elimination of revenue from our facilities, an increase in the cost of operating our
facilities or delays in cash collections, any of which could have a material adverse effect on our results of operations, financial
condition and/or cash flows.
Our merger and acquisition activities may not be successful or may result in completed acquisitions that do not perform as
anticipated.
From time to time, we have made and may continue to make acquisitions of businesses and assets. However, suitable acquisition
candidates may not continue to be available on terms and conditions we find acceptable. In addition, any completed or future
acquisitions involve substantial risks, including the following:
• acquired businesses or assets may not produce revenues, earnings or cash flow at anticipated levels;
• acquired businesses or assets could have environmental, permitting or other problems for which contractual protections
prove inadequate;
• we may assume liabilities that were not disclosed to us, that exceed our estimates, or for which our rights to indemnification
from the seller are limited;
• we may be unable to integrate acquired businesses successfully and realize anticipated economic, operational and other
benefits in a timely manner, which could result in substantial costs and delays or other operational, technical or financial
problems; and
• acquisitions, or the pursuit of acquisitions, could disrupt our ongoing businesses, distract management, divert resources
and make it difficult to maintain our current business standards, controls and procedures.
Failure to attract and retain an appropriately qualified workforce could adversely impact our results of operations.
Our business is dependent on our ability to recruit, retain, and motivate employees. Certain circumstances, such as an aging
workforce without appropriate replacements, a mismatch of existing skillsets to future needs, or the unavailability of contract