Mge Energy (MGEE) risk factors, FY2024 10-K

Regulatory Risk

1. 01We are subject to extensive government regulation in our business, which affects our costs and responsiveness to changing events and circumstances
2. 02Our utility revenues are subject to regulatory proceedings and/or negotiated settlements, which can affect our ability to recover, and the timing of recovery of, costs that we incur in our operations
3. 03We could be subject to higher costs and potential penalties resulting from mandatory reliability standards
4. 04We are subject to changing environmental laws and regulations that may affect our costs and business plans
5. 05Imposing or modifying limits on the operations of our facilities in order to meet restrictions on air emissions, water use or water discharges
6. 06We may be subject to future laws, regulations, or actions associated with public concern with fossil-fuel generation, greenhouse gases, and the effects of global climate change
7. 07We face risk regarding the recovery of fuel and purchased power costs
8. 08Changes in federal income tax policy or our inability to use or generate tax credits may adversely affect our financial condition, results of operations, and cash flows, as well as our credit ratings
9. 09We are affected by weather, which affects customer demand and can affect the operation of our facilities
10. 10Our revenues and the timing of the recovery of our costs could be adversely affected by improvements in power generation, storage, and use technology
11. 11We are affected by local, national, and worldwide economic activity
12. 12Our operations could be adversely affected by global climate change
13. 13The ability to obtain an adequate supply of coal could limit the ability to operate the co-owned coal-fired facilities from which we receive a significant portion of our electric supply
14. 14Result in potentially higher costs for replacement purchased power as well as potential lost market sales opportunities
15. 15Our ability to manage our purchased power costs is influenced by a number of uncontrollable factors
16. 16Failure to perform on the part of any party from which we purchase capacity or energy, whether due to equipment failures or other causes
17. 17The equipment and facilities in our operational system are subject to risks that may adversely affect our financial performance
18. 18Our operations and confidential information are subject to the risk of physical or cyber attacks, which could have an adverse effect on our business and performance
19. 19Catastrophic and unpredictable events, including, but not limited to, terrorist or other physical attacks, could have a material adverse effect on our business
20. 20We face risk in connection with the completion of significant capital projects
21. 21Our stated long-term goals are based on various assumptions and beliefs that may not prove to be achievable in the time frame projected
22. 22Failure to attract and retain an appropriately qualified workforce could affect our operations

Financial Risk

1. 23We are exposed to commodity price risk relating to our purchases of natural gas, electricity, coal, oil, and environmental allowances
2. 24Interest rate movements and market performance affects our employee benefit plan costs
3. 25We are exposed to interest rate risk
4. 26We are exposed to counterparty credit risk primarily through our regulated energy business
5. 27As a holding company, we are dependent on upstream cash flows from our subsidiaries for the payment of dividends on our common stock
6. 28Disruptions in the financial markets or changes to our credit ratings may affect our ability to finance at a reasonable cost and in accordance with our planned schedule