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Table of Contents
<br />Changes in utility regulation and tariffs could adversely affect our business.
<br />Our business is affected by regulations and tariffs that govern the activities and rates of utilities. For example, utility companies are commonly allowed by regulatory authorities
<br />to charge fees to some business customers for disconnecting from the electric grid or for having the capacity to use power from the electric grid for back-up purposes. These fees
<br />could increase the cost to our customers of taking advantage of our services and make them less desirable, thereby harming our business, financial condition, and operating
<br />results. Many of our current generating projects are operated as qualifying facilities. FERC regulations under the FPA confer upon these facilities' key rights to interconnection
<br />with local utilities and can entitle qualifying facilities to enter into power purchase agreements with local utilities, from which the qualifying facilities benefit. Changes to these
<br />federal laws and regulations could increase our regulatory burdens and costs and could reduce our revenues. State regulatory agencies could award renewable energy
<br />certificates or credits that our electric generation facilities produce to our power purchasers, thereby reducing the power sales revenues we otherwise would earn. In addition,
<br />modifications to the pricing policies of utilities could require renewable energy systems to charge lower prices in order to compete with the price of electricity from the electric
<br />grid and may reduce the economic attractiveness of certain energy efficiency measures.
<br />Some of the demand -reduction services we provide for utilities and institutional clients are subject to regulatory tariffs imposed under federal and state utility laws. In addition,
<br />the operation of, and electrical interconnection for, our renewable energy projects are subject to federal, state, or provincial interconnection and federal reliability standards that
<br />are also set forth in utility tariffs. These tariffs specify rules, business practices, and economic terms to which we are subject. The tariffs are drafted by the utilities and approved
<br />by the utilities' state and federal regulatory commissions. These tariffs change frequently, and it is possible that future changes will increase our administrative burden or
<br />adversely affect the terms and conditions under which we render service to our customers.
<br />Compliance with environmental laws could adversely affect our operating results.
<br />Costs of compliance with federal, state, provincial, local and other foreign existing and future environmental regulations could adversely affect our cash flow and profitability.
<br />We are required to comply with numerous environmental laws and regulations and to obtain numerous governmental permits in connection with energy efficiency and
<br />renewable energy projects. In addition, we may become subject to additional legislation and regulation regarding climate change, and we may incur significant additional costs
<br />to comply with existing and new requirements. If we fail to comply with these requirements, we could be subject to civil or criminal liability, damages, and fines. Existing
<br />environmental regulations could be revised or reinterpreted, and new laws and regulations could be adopted or become applicable to us or our projects, and future changes in
<br />environmental laws and regulations, including those intended to combat climate change, could occur. These factors may materially increase the amount we must invest to bring
<br />our projects into compliance and impose additional expense on our operations. In addition, private lawsuits or enforcement actions by federal, state, provincial, and/or foreign
<br />regulatory agencies may materially increase our costs. Certain environmental laws make us potentially liable on a joint and several basis for the remediation of contamination at
<br />or emanating from properties or facilities we currently or formerly owned or operated or properties to which we arranged for the disposal of hazardous substances. Such liability
<br />is not limited to the cleanup of contamination we actually caused. Although we seek to obtain indemnities against liabilities relating to historical contamination at the facilities
<br />we own or operate, we cannot provide any assurance that we will not incur liability relating to the remediation of contamination, including contamination we did not cause. We
<br />may not be able to obtain or maintain, from time to time, all required environmental regulatory approvals. A delay in obtaining any required environmental regulatory approvals
<br />or failure to obtain and comply with them could adversely affect our business and operating results.
<br />Our activities and operations are subject to numerous health and safety laws and regulations, and if we violate such regulations, we could face penalties and fines
<br />We are subject to numerous health and safety laws and regulations in each of the jurisdictions in which we operate. These laws and regulations require us to obtain and maintain
<br />permits and approvals and implement health and safety programs and procedures to control risks associated with our projects. Compliance with those laws and regulations can
<br />require us to incur substantial costs. Moreover, if our compliance programs are not successful, we could be subject to penalties or to revocation of our permits, which may
<br />require us to curtail or cease operations of the affected projects. Violations of laws, regulations and permit requirements may also result in criminal sanctions or injunctions.
<br />Health and safety laws, regulations and permit requirements may change or become more stringent. Any such changes could require us to incur materially higher costs than we
<br />currently have. Our costs of complying with current and future health and safety laws, regulations and permit requirements, and any liabilities, fines or other sanctions resulting
<br />from violations of them, could adversely affect our business, financial condition, and operating results.
<br />We are subject to various privacy and consumer protection laws.
<br />Our privacy policy is posted on our website, and any failure by us or our vendor or other business partners to comply with it or with federal, state, or international privacy, data
<br />protection or security laws or regulations could result in regulatory or litigation -related actions against us, legal liability, fines, damages and other costs. We may also incur
<br />substantial expenses and costs in
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