This excerpt taken from the PCG 8-K filed Oct 28, 2005.
Changes in, or liabilities under, the Utilitys permits, authorizations or licenses could adversely affect PG&E Corporations and the Utilitys financial condition and results of operations.
The Utility is also required to comply with the terms of various permits, authorizations and licenses. These permits, authorizations and licenses may be revoked or modified by the agencies that granted them if facts develop that differ significantly from the facts assumed when they were issued. In addition, discharge permits and other approvals and licenses are often granted
for a term that is less than the expected life of the associated facility. Licenses and permits may require periodic renewal, which may result in additional requirements being imposed by the granting agency. In connection with a license renewal, the FERC may impose new license conditions that could, among other things, require increased expenditures or result in reduced electricity output and/or capacity at the facility.
If the CPUC, the FERC, the NRC, or other regulatory agency having jurisdiction, makes a finding that the Utility did not comply with applicable rules, tariffs and orders, the Utility could be required to make customer refunds, pay penalties, or incur other non-recoverable expenses, which could have a material adverse effect on PG&E Corporations and the Utilitys financial condition and results of operations. Also, if the Utility is unable to obtain, renew or comply with these governmental permits, authorizations or licenses, or the Utility is unable to recover any increased costs of complying with additional license requirements or any other associated costs in its rates in a timely manner, PG&E Corporations and the Utilitys financial condition and results of operations could be materially adversely affected.