Otter Tail (OTTR) risk factors, FY2024 10-K

Other

1. 01RISK FACTORS AND CAUTIONARY STATEMENTS

OPERATIONAL RISKS

1. 02Our strategy includes large capital investments, which are subject to risks
2. 03Weather impacts, including seasonal fluctuations, could adversely affect our operating results
3. 04Longer term shifts in climate patterns may impact our customers' demand for electricity, interrupt our business operations and damage our facilities; reduce the availability of natural resources, such as water; and cause disruptions in our supply chains
4. 05Our operations are subject to environmental, health and safety laws and regulations
5. 06We are periodically subject to actual and threatened claims, litigation, investigations and other proceedings, including proceedings by governments and regulatory authorities, involving utilities regulation, competition and antitrust, product quality matters, and liability claims
6. 07A cyber incident, security breach or system failure could adversely affect our business and operating results
7. 08The loss of or significant reduction in revenue from any of our key customers could have an adverse effect on our operating results
8. 09The inability to attract and retain a qualified workforce could have an adverse effect on our operations

FINANCIAL RISKS

1. 10We are subject to capital market and interest rate risks
2. 11A decrease in our credit ratings could increase our borrowing costs and result in additional contractual costs
3. 12Our pension and other postretirement benefit plans are subject to investment and interest rate risks
4. 13We rely on our subsidiaries to provide sufficient earnings and cash flows to allow us to meet our financial obligations and pay dividends to our shareholders
5. 14Changes in tax laws could materially affect our financial condition and operating results
6. 15OTP is subject to federal and state legislation and comprehensive regulation by federal and state regulatory agencies, including the public utility commissions in each of the three states in which OTP operates, and by the FERC
7. 16We may be unable to fully recover costs of our co-owned coal-fired generating facilities
8. 17Environmental regulation could require us to incur substantial capital expenditures, increased operating costs or make it no longer economically viable to operate some of our facilities
9. 18Actions to address climate change and greenhouse gas emissions could materially impact us
10. 19General economic and industry conditions impact our business
11. 20Violations of extensive legal and regulatory compliance requirements could have a negative impact on our business and results of operations
12. 21Our generation, transmission and distribution facilities could be vulnerable to cyber and physical attack
13. 22Our generation, transmission and distribution facilities are subject to operational risks, which include circumstances that could result in injuries, loss of life, property damage and fires
14. 23Joint ownership of coal-fired generation facilities could impact our ability to manage changing regulations and economic conditions
15. 24We are subject to risks associated with energy and capacity markets
16. 25We are subject to risks associated with the procurement and transportation of fuel to our coal and natural gas-powered generation facilities
17. 26We are impacted by our customers' strategies, operational decisions and conditions in the end markets they serve
18. 27The price and availability of raw materials could adversely impact our operating results
19. 28Competition from domestic and foreign manufacturers could affect the revenues and earnings of our manufacturing businesses
20. 29Our business may be adversely affected if we are not able to maintain our manufacturing, engineering and technological expertise
21. 30External factors beyond our control could cause fluctuations in demand for and pricing of our PVC pipe products
22. 31Changes in PVC resin prices could negatively affect our plastics business
23. 32Our plastics operations are highly dependent on a limited number of vendors and a limited supply of PVC resin and other materials
24. 33We compete against other manufacturers of PVC pipe and manufacturers of alternative products
25. 34Changes in economic conditions and economic policies could negatively impact our businesses
26. 35If we are unable to achieve the organic growth we expect, our financial performance may be adversely affected
27. 36The effects of a major public health crisis, such as an epidemic or pandemic, and measures taken to reduce and slow the spread of the disease could adversely impact our business