Entergy and the Utility operating companies could be adversely affected by various events beyond their control, including, without limitation, public health crises, natural disasters, geopolitical tensions and other political instability, or other catastrophic events. Any of the foregoing, whether occurring locally, nationally, or globally, and the resulting effects thereof could lead to disruption of the general economy, impacts on the customers of the Utility operating companies, and disruption of the operations of Entergy’s subsidiaries, due to, among other things:
- supply chain, vendor, and contractor disruptions, including shortages or delays in the availability of key components, parts, and supplies such as electronic components and solar panels;
- delays in completion of capital or other construction projects, maintenance, and other operations activities, including prolonged or delayed refueling and maintenance outages;
- adverse impacts on liquidity and cash flows, including through declining sales, reduced revenues, delays in receipts of customer payments, or increased bad debt expense;
- delays in regulatory proceedings;
- regulatory outcomes that require the Utility operating companies to postpone planned investments and otherwise reduce costs due to, for example, the impact of a public health crises or such other catastrophic events on their customers;
Part I Item 1A, 1B, and 1C
Entergy Corporation, Utility operating companies, and System Energy
Part I Item 1A, 1B, and 1C
Entergy Corporation, Utility operating companies, and System Energy
- workforce availability challenges, including, for example, from infections, health, or safety issues resulting from a public health crisis;
- increased storm recovery costs;
- increased cybersecurity risks as a result of many employees telecommuting;
- volatility in the credit or capital markets (and any related increased cost of capital or any inability to access the capital markets or draw on available credit facilities on favorable terms), which could in turn, cause a decrease in the value of its defined benefit pension or decommissioning trust funds;
- adverse impacts on Entergy’s credit metrics or ratings;
- governmental mandates in response to any such event; or
- other adverse impacts on their ability to execute on business strategies and initiatives.
To the extent any of these events occur, the business, results of operations, and financial condition of Entergy and the Utility operating companies could be adversely affected.