EIX » Topics » EMEs projects may be affected by general operating risks and hazards customary in the power generation industry. EME may not have adequate insurance to cover all these hazards.

These excerpts taken from the EIX 10-K filed Mar 2, 2009.
EME’s projects may be affected by general operating risks and hazards customary in the power generation industry. EME may not have adequate insurance to cover all these hazards.
 
The operation of power generation facilities involves many operating risks, including:
 
•   performance below expected levels of output, efficiency or availability;
 
•   interruptions in fuel supply;
 
•   disruptions in the transmission of electricity;
 
•   curtailment of operations due to transmission constraints;
 
•   breakdown or failure of equipment or processes;
 
•   imposition of new regulatory, permitting, or environmental requirements, or violations of existing requirements;
 
•   employee work force factors, including strikes, work stoppages or labor disputes;
 
•   operator/contractor error; and
 
•   catastrophic events such as terrorist activities, fires, tornadoes, earthquakes, explosions, floods or other similar occurrences affecting power generation facilities or the transmission and distribution infrastructure over which power is transported.
 
These and other hazards can cause significant personal injury or loss of life, severe damage to and destruction of property, plant and equipment, contamination of or damage to the environment, and suspension of operations. The occurrence of one or more of the events listed above could decrease or eliminate revenues generated by EME’s projects or significantly increase the costs of operating them, and could also result in EME’s being named as a defendant in lawsuits asserting claims for substantial damages, potentially including environmental cleanup costs, personal injury, property damage, fines and penalties. Equipment and plant warranties, guarantees and insurance may not be sufficient or effective under all circumstances to cover lost revenues or increased expenses. A decrease or elimination in revenues generated by the facilities or an increase in the costs of operating them could decrease or eliminate funds available to meet EME’s obligations as they become due and could have a material adverse effect on EME. A default under a financing obligation of a project entity could result in a loss of EME’s interest in the project.
 
EME’s projects may be affected by general operating risks and hazards customary in the power generation industry. EME may not have adequate insurance to cover all these hazards.
 
The operation of power generation facilities involves many operating risks, including:
 
•   performance below expected levels of output, efficiency or availability;
 
•   interruptions in fuel supply;
 
•   disruptions in the transmission of electricity;
 
•   curtailment of operations due to transmission constraints;
 
•   breakdown or failure of equipment or processes;
 
•   imposition of new regulatory, permitting, or environmental requirements, or violations of existing requirements;
 
•   employee work force factors, including strikes, work stoppages or labor disputes;
 
•   operator/contractor error; and
 
•   catastrophic events such as terrorist activities, fires, tornadoes, earthquakes, explosions, floods or other similar occurrences affecting power generation facilities or the transmission and distribution infrastructure over which power is transported.
 
These and other hazards can cause significant personal injury or loss of life, severe damage to and destruction of property, plant and equipment, contamination of or damage to the environment, and suspension of operations. The occurrence of one or more of the events listed above could decrease or eliminate revenues generated by EME’s projects or significantly increase the costs of operating them, and could also result in EME’s being named as a defendant in lawsuits asserting claims for substantial damages, potentially including environmental cleanup costs, personal injury, property damage, fines and penalties. Equipment and plant warranties, guarantees and insurance may not be sufficient or effective under all circumstances to cover lost revenues or increased expenses. A decrease or elimination in revenues generated by the facilities or an increase in the costs of operating them could decrease or eliminate funds available to meet EME’s obligations as they become due and could have a material adverse effect on EME. A default under a financing obligation of a project entity could result in a loss of EME’s interest in the project.
 
EME’s
projects may be affected by general operating risks and hazards
customary in the power generation industry. EME may not have
adequate insurance to cover all these hazards.



 



The operation of power generation facilities involves many
operating risks, including:


 






















































































•  
performance below expected levels of output, efficiency or
availability;
 
•  
interruptions in fuel supply;
 
•  
disruptions in the transmission of electricity;
 
•  
curtailment of operations due to transmission constraints;
 
•  
breakdown or failure of equipment or processes;
 
•  
imposition of new regulatory, permitting, or environmental
requirements, or violations of existing requirements;
 
•  
employee work force factors, including strikes, work stoppages
or labor disputes;
 
•  
operator/contractor error; and
 
•  
catastrophic events such as terrorist activities, fires,
tornadoes, earthquakes, explosions, floods or other similar
occurrences affecting power generation facilities or the
transmission and distribution infrastructure over which power is
transported.


 



These and other hazards can cause significant personal injury or
loss of life, severe damage to and destruction of property,
plant and equipment, contamination of or damage to the
environment, and suspension of operations. The occurrence of one
or more of the events listed above could decrease or eliminate
revenues generated by EME’s projects or significantly
increase the costs of operating them, and could also result in
EME’s being named as a defendant in lawsuits asserting
claims for substantial damages, potentially including
environmental cleanup costs, personal injury, property damage,
fines and penalties. Equipment and plant warranties, guarantees
and insurance may not be sufficient or effective under all
circumstances to cover lost revenues or increased expenses. A
decrease or elimination in revenues generated by the facilities
or an increase in the costs of operating them could decrease or
eliminate funds available to meet EME’s obligations as they
become due and could have a material adverse effect on EME. A
default under a financing obligation of a project entity could
result in a loss of EME’s interest in the project.


 




EME’s
projects may be affected by general operating risks and hazards
customary in the power generation industry. EME may not have
adequate insurance to cover all these hazards.



 



The operation of power generation facilities involves many
operating risks, including:


 






















































































•  
performance below expected levels of output, efficiency or
availability;
 
•  
interruptions in fuel supply;
 
•  
disruptions in the transmission of electricity;
 
•  
curtailment of operations due to transmission constraints;
 
•  
breakdown or failure of equipment or processes;
 
•  
imposition of new regulatory, permitting, or environmental
requirements, or violations of existing requirements;
 
•  
employee work force factors, including strikes, work stoppages
or labor disputes;
 
•  
operator/contractor error; and
 
•  
catastrophic events such as terrorist activities, fires,
tornadoes, earthquakes, explosions, floods or other similar
occurrences affecting power generation facilities or the
transmission and distribution infrastructure over which power is
transported.


 



These and other hazards can cause significant personal injury or
loss of life, severe damage to and destruction of property,
plant and equipment, contamination of or damage to the
environment, and suspension of operations. The occurrence of one
or more of the events listed above could decrease or eliminate
revenues generated by EME’s projects or significantly
increase the costs of operating them, and could also result in
EME’s being named as a defendant in lawsuits asserting
claims for substantial damages, potentially including
environmental cleanup costs, personal injury, property damage,
fines and penalties. Equipment and plant warranties, guarantees
and insurance may not be sufficient or effective under all
circumstances to cover lost revenues or increased expenses. A
decrease or elimination in revenues generated by the facilities
or an increase in the costs of operating them could decrease or
eliminate funds available to meet EME’s obligations as they
become due and could have a material adverse effect on EME. A
default under a financing obligation of a project entity could
result in a loss of EME’s interest in the project.


 




These excerpts taken from the EIX 10-K filed Feb 27, 2008.
EME’s projects may be affected by general operating risks and hazards customary in the power generation industry. EME may not have adequate insurance to cover all these hazards.
 
The operation of power generation facilities involves many operating risks, including:
 
•   performance below expected levels of output, efficiency or availability;
 
•   interruptions in fuel supply;
 
•   disruptions in the transmission of electricity;
 
•   curtailment of operations due to transmission constraints;
 
•   breakdown or failure of equipment or processes;
 
•   imposition of new regulatory, permitting, or environmental requirements, or violations of existing requirements;
 
•   employee work force factors, including strikes, work stoppages or labor disputes;
 
•   operator/contractor error; and
 
•   catastrophic events such as terrorist activities, fires, tornadoes, earthquakes, explosions, floods or other similar occurrences affecting power generation facilities or the transmission and distribution infrastructure over which power is transported.
 
These and other hazards can cause significant personal injury or loss of life, severe damage to and destruction of property, plant and equipment, contamination of or damage to the environment, and suspension of operations. The occurrence of one or more of the events listed above could decrease or eliminate revenues generated by EME’s projects or significantly increase the costs of operating them, and could also result in EME’s being named as a defendant in lawsuits asserting claims for substantial damages, potentially including environmental cleanup costs, personal injury, property damage, fines and penalties. Equipment and plant warranties, guarantees and insurance may not be sufficient or effective under all circumstances to cover lost revenues or increased expenses. A decrease or elimination in revenues generated by the facilities or an increase in the costs of operating them could decrease or eliminate funds available to meet EME’s obligations as they become due and could have a material adverse effect on EME. A default under a financing obligation of a project entity could result in a loss of EME’s interest in the project.
 
EME’s
projects may be affected by general operating risks and hazards
customary in the power generation industry. EME may not have
adequate insurance to cover all these hazards.



 



The operation of power generation facilities involves many
operating risks, including:


 






















































































•  
performance below expected levels of output, efficiency or
availability;
 
•  
interruptions in fuel supply;
 
•  
disruptions in the transmission of electricity;
 
•  
curtailment of operations due to transmission constraints;
 
•  
breakdown or failure of equipment or processes;
 
•  
imposition of new regulatory, permitting, or environmental
requirements, or violations of existing requirements;
 
•  
employee work force factors, including strikes, work stoppages
or labor disputes;
 
•  
operator/contractor error; and
 
•  
catastrophic events such as terrorist activities, fires,
tornadoes, earthquakes, explosions, floods or other similar
occurrences affecting power generation facilities or the
transmission and distribution infrastructure over which power is
transported.


 



These and other hazards can cause significant personal injury or
loss of life, severe damage to and destruction of property,
plant and equipment, contamination of or damage to the
environment, and suspension of operations. The occurrence of one
or more of the events listed above could decrease or eliminate
revenues generated by EME’s projects or significantly
increase the costs of operating them, and could also result in
EME’s being named as a defendant in lawsuits asserting
claims for substantial damages, potentially including
environmental cleanup costs, personal injury, property damage,
fines and penalties. Equipment and plant warranties, guarantees
and insurance may not be sufficient or effective under all
circumstances to cover lost revenues or increased expenses. A
decrease or elimination in revenues generated by the facilities
or an increase in the costs of operating them could decrease or
eliminate funds available to meet EME’s obligations as they
become due and could have a material adverse effect on EME. A
default under a financing obligation of a project entity could
result in a loss of EME’s interest in the project.


 




This excerpt taken from the EIX 10-K filed Feb 28, 2007.

EME’s projects may be affected by general operating risks and hazards customary in the power generation industry. EME may not have adequate insurance to cover all these hazards.

The operation of power generation facilities involves many operating risks, including:

 

 

performance below expected levels of output or efficiency;

 

 

interruptions in fuel supply;

 

 

disruptions in the transmission of electricity;

 

 

curtailment of operations due to transmission constraints;

 

 

breakdown or failure of equipment or processes;

 

 

imposition of new regulatory, permitting, or environmental requirements, or violations of existing requirements;

 

 

employee work force factors, including strikes, work stoppages or labor disputes;

 

 

operator/contractor error; and

 

 

catastrophic events such as terrorist activities, fires, tornadoes, earthquakes, explosions, floods or other similar occurrences affecting power generation facilities or the transmission and distribution infrastructure over which power is transported.

These and other hazards can cause significant personal injury or loss of life, severe damage to and destruction of property, plant and equipment, contamination of or damage to the environment, and suspension of operations. The occurrence of one or more of the events listed above could decrease or

 

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Table of Contents

eliminate revenues generated by EME’s projects or significantly increase the costs of operating them, and could also result in EME’s being named as a defendant in lawsuits asserting claims for substantial damages, potentially including environmental cleanup costs, personal injury, property damage, fines and penalties. Equipment and plant warranties and insurance may not be sufficient or effective under all circumstances to cover lost revenues or increased expenses. A decrease or elimination in revenues generated by the facilities or an increase in the costs of operating them could decrease or eliminate funds available to meet EME’s obligations as they become due and could have a material adverse effect on EME. A default under a financing obligation of a project entity could result in a loss of EME’s interest in the project.

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