30 unchanged sentences
Month-end low VaR $ 283 $ 222
−Removed: The VaR risk measures in 2021 were primarily comparable to the prior year.
−Removed: The increase in month-end high VaR risk measure in 2021 is driven by a larger net open position, higher forward prices and an increase in market implied volatility as compared to the prior year.
+Added: The month-end high VaR risk measure in 2022 is currently consistent with the prior year.
Interest Rate Risk
24 unchanged sentences
Credit Exposure — Our gross credit exposure (excluding collateral impacts) associated with retail and wholesale trade accounts receivable and net derivative assets arising from commodity contracts and hedging and trading activities totaled $2.237 billion at December 31, 2022.
−Removed: As of December 31, 2021, Retail segment credit exposure totaled approximately $900 million of primarily trade accounts receivable.
−Removed: Cash deposits and letters of credit held as collateral for these receivables totaled $60 million, resulting in a net exposure of $840 million.
+Added: As of December 31, 2022, Retail segment credit exposure totaled approximately $1.233 billion, including $1.211 billion of trade accounts receivable and $22 million related to derivatives.
+Added: Cash deposits and letters of credit held as collateral for these receivables totaled $65 million, resulting in a net exposure of $1.168 billion.
Allowances for uncollectible accounts receivable are established for the potential loss from nonpayment by these customers based on historical experience, market or operational conditions and changes in the financial condition of large business customers.
−Removed: As of December 31, 2021, aggregate Texas, East and Sunset segments credit exposure totaled $1.457 billion including $687 million related to derivative assets and $770 million of accounts receivable, after taking into account master netting agreement provisions but excluding collateral impacts.
−Removed: Including collateral posted to us by counterparties, our net Texas, East and Sunset segments exposure was $1.390 billion, as seen in the following table that presents the distribution of credit exposure by counterparty credit quality at December 31, 2021.
+Added: As of December 31, 2022, aggregate Texas, East, Sunset and Asset Closure segments credit exposure totaled $1.004 billion including $541 million related to derivative assets and $463 million of trade accounts receivable, after taking into account master netting agreement provisions but excluding collateral impacts.
+Added: Including collateral posted to us by counterparties, our net Texas, East, Sunset and Asset Closure segments exposure was $936 million, as seen in the following table that presents the distribution of credit exposure by counterparty credit quality at December 31, 2022.
Credit collateral includes cash and letters of credit but excludes other credit enhancements such as guarantees or liens on assets.
6 unchanged sentences
Significant ( i.e.
−Removed: , 10% or greater) concentration of credit exposure exists with one counterparty, which represented an aggregate $619 million, or 45%, of the total net exposure.
+Added: , 10% or greater) concentration of credit exposure exists with one counterparty, which represented an aggregate $136 million, or 15%, of our total net exposure.
We view exposure to this counterparty to be within an acceptable level of risk tolerance due to the counterparty's credit ratings, the counterparty's market role and deemed creditworthiness and the importance of our business relationship with the counterparty.
21 unchanged sentences
▪ present or prospective wholesale and retail competition;
−Removed: ▪ changes in federal, state and local tax laws, rates and policies, including additional regulation, interpretations, amendments, or technical corrections to the TCJA;
−Removed: ▪ changes in and compliance with environmental and safety laws and policies, including the Coal Combustion Residuals Rule, National Ambient Air Quality Standards, the Cross-State Air Pollution Rule, the Mercury and Air Toxics Standard, regional haze program implementation and GHG and other climate change initiatives;
+Added: ▪ changes in federal, state and local tax laws, rates and policies, including additional regulation, interpretations, amendments, or technical corrections to the TCJA and/or the IRA;
+Added: ▪ changes in and compliance with environmental and safety laws and policies, including the CCR Rule, National Ambient Air Quality Standards, the Cross-State Air Pollution Rule, the Mercury and Air Toxics Standard, regional haze program implementation and GHG and other climate change initiatives;
▪ clearing over-the-counter derivatives through exchanges and posting of cash collateral therewith;
2 unchanged sentences
• general industry trends;
−Removed: • economic conditions, including the impact of any recession or economic downturn;
+Added: • economic conditions, including the impact of any inflationary period, recession or economic downturn;
• investor sentiment relating to climate change and utilization of fossil fuels in connection with power generation could reduce demand for, or increase potential volatility in the market price of, our common stock;
• the severity, magnitude and duration of pandemics, including the COVID-19 pandemic, and the resulting effects on our results of operations, financial condition and cash flows;
−Removed: • the severity, magnitude and duration of extreme weather events (including Winter Storm Uri), drought and limitations on access to water, and other weather conditions and natural phenomena, contingencies and uncertainties relating thereto, most of which are difficult to predict and many of which are beyond our control, and the resulting effects on our results of operations, financial condition and cash flows;
−Removed: • acts of sabotage, wars or terrorist or cybersecurity threats or activities;
+Added: • the severity, magnitude and duration of extreme weather events, drought and limitations on access to water, and other weather conditions and natural phenomena, contingencies and uncertainties relating thereto, most of which are difficult to predict and many of which are beyond our control, and the resulting effects on our results of operations, financial condition and cash flows;
+Added: • acts of sabotage, geopolitical conflicts, wars, or terrorist, cybersecurity, cybercriminal, or cyber-espionage threats or activities;
• risk of contract performance claims by us or our counterparties, and risks of, or costs associated with, pursuing or defending such claims;
1 unchanged sentence
• our ability to attract, retain and profitably serve customers;
−Removed: • restrictions on competitive retail pricing or direct-selling businesses;
+Added: • restrictions on or prohibitions of competitive retail pricing or direct-selling businesses;
• adverse publicity associated with our retail products or direct selling businesses, including our ability to address the marketplace and regulators regarding our compliance with applicable laws;
1 unchanged sentence
• changes in prices of transportation of natural gas, coal, fuel oil and other refined products;
−Removed: • sufficiency of, access to, and costs associated with coal, fuel oil, and natural gas inventories and transportation and storage thereof;
+Added: • sufficiency of, access to, and costs associated with coal, fuel oil, natural gas, and uranium inventories and transportation and storage thereof;
• changes in the ability of counterparties and suppliers to provide or deliver commodities, materials, or services as needed;
14 unchanged sentences
• our ability to generate sufficient cash flow to make principal and interest payments in respect of, or refinance, our debt obligations;
−Removed: • our expectation that we will continue to pay a comparable cash dividend on a quarterly basis;
+Added: • our expectation that we will continue to pay (i) a consistent aggregate cash dividend amount to common stockholders on a quarterly basis and (ii) the applicable semiannual cash dividend to the Series A Preferred Stock and Series B Preferred Stock stockholders, respectively;
+Added: • our expectation that we will continue to make repurchases under, and the possibility that we may fail to realize the anticipated benefits of, our share repurchase program, and the possibility that the program may be suspended, discontinued or not completed prior to its termination;
• our ability to implement and successfully execute upon our strategic and growth initiatives, including the completion and integration of mergers, acquisitions and/or joint venture activity, the identification and completion of sales and divestitures activity, and the completion and commercialization of our other business development and construction projects;
26 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.