CenterPoint Energy 2015 Annual Report Download - page 38

• modifyorreplaceexistingandproposedequipment;and
• cleanordecommissionwastedisposalareas,fuelstorageandmanagementfacilitiesandotherlocationsandfacilities.
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regulatedratesorotherwise,oranysuchrecoverymaynotbetimelygranted.Therefore,CenterPointHoustonmaynotbeabletorestore
any loss of, or damage to, anyof its transmission and distribution properties without negative impact on its results of operations, financial condition andcash
flows.
OuroperationsandEnable’soperationsaresubjecttoalloftherisksandhazardsinherentinthegathering,processing,transportationandstorageofnatural
gasandcrudeoil,including:
• damagetopipelinesandplants,relatedequipmentandsurroundingpropertiescausedbyhurricanes,tornadoes,floods,firesandothernaturaldisasters,
actsofterrorismandactionsbythirdparties;
•inadvertentdamagefromconstruction,vehicles,farmandutilityequipment;
• leaksofnaturalgas,NGLs,crudeoilandotherhydrocarbonsorlossesofnaturalgas,NGLsandcrudeoilasaresultofthemalfunctionofequipmentor
facilities;
• ruptures,firesandexplosions;and
• otherhazardsthatcouldalsoresultinpersonalinjuryandlossoflife,pollutionandsuspensionofoperations.
WeandOGEcurrentlyhavegeneralliabilityandpropertyinsuranceinplacetocovercertainofEnable’sfacilitiesinamountsthatweconsiderappropriate.
Suchpoliciesaresubjecttocertainlimitsanddeductibles.Theseriskscouldresultinsubstantiallossesduetopersonalinjuryand/orlossoflife,severedamageto
and destruction of property, plant and equipment and pollution or other environmental damage. These risks may also result in curtailment or suspension of
Enable’soperations.AnaturaldisasterorotherhazardaffectingtheareasinwhichEnableoperatescouldhaveamaterialadverseeffectonEnable’soperations.
Enableisnotfullyinsuredagainstallrisksinherentinitsbusiness.Enablecurrentlyhasgeneralliabilityandpropertyinsuranceinplacetocovercertainofits
facilities in amounts that Enable considers appropriate. Such policies are subject to certain limits and deductibles. Enable does not have business interruption
insurancecoverageforallofitsoperations.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
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