Above-average adjusted debt to capital, relative to the sector, of 70%, the continuing effect of a series of losses two decades ago; A general rate freeze in place through 2012 that implies that the company is unable to pass certain costs to customers; Excess-generation status, which makes consolidated cash flows sensitive to wholesale power prices, especially as the short-term sales revenues will be credited against the purchased power and fuel adjustment clause revenues; and High exposure to coal-based generation that poses asset concentration risk and added environmental compliance costs. Regulated electric and gas utility operations; Low-cost coal-fired generation that is sufficient to meet the majority of the company's retail loads, resulting in low exposure to natural gas volatility and stable
