Fiscal period ending 2025-12-31 versus 2024-12-31
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The regulatory compliance picture worsened meaningfully with the addition of several specific new exposures — Ohio SB 2, a New Jersey executive order, AI data center interconnection rules, and PJM capacity auction price collar mechanics through 2030 — each creating material uncertainty around rate recovery and cost allocation. Partially offsetting this, the HB 6-related state regulatory investigations were removed following completion of DPA obligations in July 2024, narrowing legal exposure to the residual securities class action. On balance, the new regulatory headwinds outweigh the litigation relief, but neither shift is severe enough to move the overall picture beyond minor.
1 company-specific
· 1 eased/removed
Company-specific changes
Revised
New specific regulatory risks added: Ohio SB 2 (2025), NJ Executive Order (2026), AI data center interconnection rules, and PJM capacity auction price collar extending through 2030 with potential backstop auction. These create material new uncertainties around rate recovery and cost allocation.
Risks Associated with the Execution of Our Strategic Initiatives and the Regulation of Our Distribution and Transmission Businesses If our cost saving initiatives do not achieve the expected…
Eased / removed
Revised
HB 6 state regulatory investigations removed from risk factor heading and discussion. DPA obligations completed July 2024. Litigation focus narrowed to securities class action only.
Risks Associated with Damage to Our Reputation and Securities Class-Action Litigation Securities class-action litigation against us could have a material adverse effect on our reputation, business…