CenterPoint Energy 2015 Annual Report Download - page 40

beensoassumedorindemnifiedagainst,andprovidedweorReliantEnergyhadnotbeenreleasedfromtheliabilityinconnectionwiththetransfer,CenterPoint
Houstoncouldberesponsibleforsatisfyingtheliability.
InconnectionwithoursaleofTexasGenco,theseparationagreementwasamendedtoprovidethatTexasGencowouldnolongerbeliablefor,andwewould
assumeandagreetoindemnifyTexasGencoagainst,liabilitiesthatTexasGencooriginallyassumedinconnectionwithitsorganizationtotheextent,andonlyto
theextent,thatsuchliabilitiesarecoveredbycertaininsurancepoliciesheldbyus.
Weoroursubsidiarieshavebeennamed,alongwithnumerousothers,asadefendantinlawsuitsfiledbyanumberofindividualswhoclaiminjurydueto
exposure to asbestos. Some of the claimants have worked at locations owned by us, but most existing claims relate to facilities previously owned by our
subsidiaries.Weanticipatethatadditionalclaimslikethosereceivedmaybeassertedinthefuture.Underthetermsofthearrangementsregardingseparationofthe
generatingbusinessfromusandoursaleofthatbusinesstoanaffiliateofNRG,ultimatefinancialresponsibilityforuninsuredlossesfromclaimsrelatingtothe
generatingbusiness hasbeenassumed bythe NRGaffiliate,but wehaveagreed tocontinue todefendsuch claimstothe extenttheyare coveredbyinsurance
maintainedbyus,subjecttoreimbursementofthecostsofsuchdefensebytheNRGaffiliate.
Cyber-attacks, physical security breaches, acts of terrorism or other disruptions could adversely impact our results of operations, financial condition and
cash flows or the results of operations, financial condition and cash flows of Enable.
Weand Enable aresubjectto cyber andphysicalsecurity risks relatedtobreaches in thesystemsand technology used(i)to manage operationsandother
businessprocessesand(ii)toprotectsensitiveinformationmaintainedinthenormalcourseofbusiness.Theoperationofourelectrictransmissionanddistribution
systemisdependentonnotonlyphysicalinterconnectionofourfacilities,butalsooncommunicationsamongthevariouscomponentsofoursystem.Aswedeploy
smartmetersandtheintelligentgrid,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 orother commodities from Enable’s gathering, processing andpipeline facilities, are
dependentoncommunicationsamongEnable’sfacilitiesandwiththird-partysystemsthatmaybedeliveringnaturalgasorothercommoditiesintoorreceiving
naturalgasandotherproductsfromEnable’s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orEnable’sabilityto
conduct operations and control 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operationsandcriticalbusinessfunctions,adverselyaffectreputation,andsubjectusorEnabletopossiblelegalclaimsand
liability.NeitherwenorEnableisfullyinsuredagainstallcyber-securityrisks,anyofwhichcouldhaveamaterialadverseeffectoneitherour,orEnable’s,results
ofoperations,financialconditionandcashflows.Inaddition,electricaldistributionandtransmissionfacilitiesandgasdistributionandpipelinesystemsmaybe
targetsofterroristactivitiesthatcoulddisrupteitherourorEnable’sabilitytoconductourrespectivebusinessesandhaveamaterialadverseeffectoneitherouror
Enable’sresultsofoperations,financialconditionandcashflows.
Failure to maintain the security of personally identifiable information could adversely affect us.
In connection with our business we collect and retain personally identifiable information of our customers, shareholders and employees. Our customers,
shareholders and employees expect that we will adequately protect their personal information, and the United States regulatory environment surrounding
informationsecurityandprivacyisincreasinglydemanding.Asignificanttheft,lossorfraudulentuseofcustomer,shareholder,employeeorCenterPointEnergy
databycyber-crimeorotherwisecouldadverselyimpactourreputationandcouldresultinsignificantcosts,finesandlitigation.
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thatimpairourinformationtechnologyinfrastructureordisruptnormalbusinessoperations;
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