Portland General Electric (POR) risk factors, FY2024 10-K

BUSINESS AND OPERATIONAL RISKS

1. 01The effects of unseasonable or severe weather and other natural phenomena can adversely affect the Company’s financial condition and results of operations, and the effects of climate change could result in more intense, frequent, and extreme weather events
2. 02Cybersecurity attacks, data security breaches, physical attacks and security breaches, acts of terrorism, or other similar events could disrupt PGE’s operations, require significant expenditures, or result in claims against the Company
3. 03Natural or human-caused disasters and other risks could damage the Company’s facilities and disrupt delivery of electricity resulting in significant property loss, repair costs, and reduced customer satisfaction
4. 04Electric utility operations may pose risk to workers, the public, and property, and may have adverse impacts on the environment
5. 05The inability to attract and retain a qualified workforce and to maintain satisfactory collective bargaining agreements without prolonged labor disruptions may adversely affect PGE’s results of operations
6. 06The construction of new facilities and the modifications or replacements of existing facilities are subject to risks that could result in the disallowance of certain costs for recovery in customer prices or higher operating costs

REGULATORY, LEGAL, AND COMPLIANCE RISKS

1. 07PGE is subject to extensive price regulation and relies on recovery of costs, the uncertainty of which could affect the Company’s operations and costs
2. 08PGE is subject to various legal and regulatory proceedings, the outcome of which is uncertain, and resolution unfavorable to PGE could adversely affect its results of operations, financial condition, or cash flows
3. 09Compliance with environmental laws and regulations may result in capital expenditures, increased operating costs and various liabilities, and adverse impacts on the Company’s results of operations
4. 10Changes in federal laws and programs may have an adverse impact on the Company’s financial position, results of operations, and cash flows
5. 11A change in forecasted customer demand for electricity may negatively impact PGE’s business
6. 12Concerns about high prices for PGE’s customers could negatively impact PGE’s financial condition, results of operations, liquidity, and cash flows
7. 13Capital and credit market conditions could adversely affect the Company’s access to capital, cost of capital, and ability to execute its strategic plan
8. 14PGE expects to raise additional capital in the future. PGE may raise additional funds through public or private equity or debt offerings or other financings, as well as additional borrowings under existing credit facilities
9. 15The declaration of future dividends is at the discretion of the Board of Directors and is not guaranteed and, in some circumstances, the payment of dividends may be limited by the terms of PGE’s debt instruments
10. 16Adverse changes in PGE’s credit ratings could negatively affect its access to the capital markets and its cost of borrowed funds
11. 17Under certain circumstances, banks participating in PGE’s syndicated unsecured revolving credit facility could decline to fund advances requested by the Company or could withdraw from participation in the credit facility, which could adversely affect PGE’s liquidity
12. 18The volatility of market prices for power and natural gas could adversely affect PGE’s costs and ability to manage its energy supply, which could negatively impact the Company’s liquidity and results of operations
13. 19Forced outages at generating facilities and battery storage facilities, both PGE-owned or under purchased power agreements, could result in power costs greater than those included in customer prices, in addition to increased repair and maintenance costs
14. 20The capacity provided by the Company’s generating resources and third-party purchased power may not be sufficient to meet its customers’ energy demand requirements and may result in increased GHG emissions
15. 21Advances in energy technology could make PGE’s business less competitive
16. 22PGE owns, through a wholly owned subsidiary, its corporate headquarters building located in Portland, Oregon. A significant change in real estate values could adversely affect PGE’s results of operations
17. 23Rapidly changing stakeholder expectations and standards with respect to PGE’s environmental, social, and governance (ESG) programs could result in increased costs and exposure to incremental risk
18. 24Actions of activist shareholders could have a negative impact on PGE’s business
19. 25PGE’s business activities are concentrated in one region and future performance may be affected by events and factors unique to Oregon or the region