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Other Risks and Considerations <br />There are other events or developments that could impact the transactions contemplated <br />in the PPA and Member Contract including: <br />future regulatory changes, including actions of the State legislature, Public Utility <br />Commission of Texas and ERCOT affecting the competitive electric utility industry; <br />future technological advances in electric generation and transmission such as <br />development of new electric generation resources, including new nuclear power <br />plants, higher efficiency coal and natural gas generation plants, high efficiency <br />electric transmission and/or advances in alternative sources of electricity (wind, solar <br />and etc.); <br />discovery of additional large scale natural gas reserves or the development of large <br />scale liquefied natural gas ("LNG") facilities in the United States to utilize overseas <br />LNG supplies and transportation facilities and/or a sustained long-term decrease of <br />the price of natural gas; <br />future environmental regulation of coal-fired electric generation facilities generally <br />could impact the transaction contemplated in the PPA, including New Governmental <br />Charges; and <br />financial markets react to various factors that CAPP can neither predict nor control. <br />Savings protections related to the PPA are dependent upon financing and debt <br />issuance costs that in turn will be influenced by interest rates that will depend upon <br />risk perceptions of financial markets. CAPP can offer no assurances regarding what <br />rates will be applicable when debt is issued or ultimately repaid. <br />MEMBER CONTRACT <br />Effect on a Citv=s Debt/Bonding Capacity <br />There is a possibility that the contract could have negative credit rating implications on <br />Participating Members. <br />General discussions with the various credit rating agencies have occurred and will <br />continue taking place to inform them of the transaction so they can make educated credit rating <br />decisions regarding the Participating Members. It is possible that the capacity payment (debt <br />obligation) of the Participating Members under the Member Contract will adversely impact any <br />given Participating Member's bonding capacity and credit rating by any or all of the rating <br />agencies. Each rating agency will have questions and analysis regarding the structure and there <br />has been no definitive answer regarding how each rating agency will view this obligation. It is <br />possible that each rating agency may view this obligation differently. <br />at 0 0 0 01 IS <br />