Centerpoint Energy (CNP) risk factors, FY2024 10-K

Other

1. 01Electric Generation, Transmission and Distribution (CenterPoint Energy and Houston Electric)
2. 02Indiana Electric’s execution of its generation transition plan, including its IRP, is subject to various risks, including timely recovery of capital investments and increased costs and risks related to the timing and cost of development and/or construction of new generation facilities
3. 03Houston Electric’s receivables are primarily concentrated in a small number of REPs, and any delay or default in payments of these receivables could adversely affect Houston Electric’s financial condition, results of operations and cash flows
4. 04Hurricane Beryl caused severe disruptions to our operations, customers and markets in certain of our service territories and could have a material adverse impact on our financial condition, results of operations, cash flows and liquidity
5. 05Increases in the cost or reduction in supply of solar energy system components due to tariffs or trade restrictions imposed by the U.S. government may have an adverse effect on our business, financial condition and results of operations
6. 06The occurrence of extreme weather events, including winter storms and record hot temperatures, or other causes could lead to additional reforms to the Texas electric market, some measure of which, if implemented, could have an adverse impact on Houston Electric
7. 07Access to natural gas supplies and pipeline transmission and storage capacity are essential components of reliable service for Natural Gas’ customers
8. 08Natural Gas is subject to fluctuations in natural gas prices, which could affect the ability of its suppliers and customers to meet their obligations or may impact its operations, which could adversely affect CERC’s financial condition, results of operations and cash flows
9. 09Natural Gas must compete with alternate energy sources, which could result in less natural gas delivered and have an adverse impact on CenterPoint Energy’s and CERC’s financial condition, results of operations and cash flows
10. 10Rate regulation of Registrants’ Electric and Natural Gas businesses may delay or deny their ability to earn an expected return and fully and timely recover their costs
11. 11We face risks related to project siting, financing, construction, permitting, governmental approvals, public opposition, and the negotiation of project development agreements that may impede our development and operating activities
12. 12We are involved in numerous legal proceedings, the outcomes of which are uncertain, and resolutions adverse to us could negatively affect our financial results
13. 13We are subject to operational and financial risks and liabilities arising from environmental laws and regulations, including regulation of CCR, climate change legislation and certain local initiatives that seek to limit fossil fuel usage
14. 14CenterPoint Energy is subject to operational and financial risks and liabilities associated with its sustainability and related activities, including the implementation of and efforts to achieve its GHG emissions reduction goals
15. 15We are subject to regulatory compliance and proceedings, which could result in higher costs for system improvements, as well as fines or other sanctions
16. 16Our businesses may be adversely affected by the intentional misconduct of our employees
17. 17Disruptions to the global supply chain may lead to higher prices for goods and services and impact our operations, which could have an adverse impact on our ability to execute our capital plan and on our financial condition, results of operations and cash flows
18. 18If we are unable to arrange future financings on acceptable terms, our ability to finance our capital expenditures or refinance outstanding indebtedness could be limited
19. 19CenterPoint Energy’s previously owned Energy Systems Group business has performance and warranty obligations, some of which are guaranteed by CenterPoint Energy
20. 20An impairment of goodwill, long-lived assets or equity method investments or a fair value adjustment could reduce our earnings
21. 21Our potential business strategies and strategic initiatives, including merger and acquisition activities and the disposition of assets or businesses, may not be completed or perform as expected, adversely affecting our financial condition, results of operations and cash flows
22. 22Changing demographics, poor investment performance of pension plan assets and other factors adversely affecting the calculation of pension liabilities could unfavorably impact our financial condition, results of operations and liquidity
23. 23We may be significantly affected by changes in federal income tax laws and regulations, including any comprehensive federal tax reform legislation
24. 24The Registrants’ businesses have safety risks
25. 25Cyberattacks, physical security breaches, acts of terrorism or other disruptions could adversely impact our reputation, financial condition, results of operations and cash flows
26. 26Compliance with and changes in cybersecurity laws and regulations have a cost and operational impact on our business, and failure to comply with such requirements could adversely impact our reputation, financial condition, results of operations and cash flows
27. 27Failure to maintain the security of personal information could adversely affect us
28. 28We may not be successful in our adoption, development and deployment of AI, which could adversely affect our business, reputation, or financial results

General and Other Risks

1. 29Our revenues and results of operations are seasonal
2. 30Climate change and other weather and natural disaster impacts could adversely impact financial results from our businesses and our results of operations
3. 31damage caused to our assets, loss of service to our customers or liability imposed as a result of wildfires could negatively impact our financial condition, results of operations and cash flows
4. 32We are exposed to risks related to changes in demand and energy consumption that could adversely impact financial results from our businesses and our results of operations
5. 33Aging infrastructure may lead to increased costs and disruptions in operations that could negatively impact our financial results
6. 34Our financial condition, results of operations and cash flows may be adversely affected if we are unable to successfully operate our facilities or perform certain corporate functions
7. 35Our businesses will continue to have to adapt to technological change and may not be successful or may have to incur significant expenditures to adapt to technological change
8. 36Our insurance coverage may not be sufficient. Insufficient insurance coverage and increased insurance costs could adversely impact our financial condition, results of operations and cash flows
9. 37Global or regional health pandemics, epidemics or similar public health threats could negatively impact our business, outlook, financial condition, results of operations and liquidity
10. 38Our success depends upon our ability to attract, effectively transition, motivate and retain key employees and identify and develop talent to succeed senior management
11. 39Failure to attract and retain an appropriately qualified workforce and maintain good labor relations could adversely impact the operations of our facilities and our results of operations