Oglethorpe Power

Risks

• Our participation in the construction of Vogtle Units No. 3 and No. 4 could have a material impact on our financial condition and results of operations.
• We own and are participating in the construction of nuclear facilities which give rise to environmental, regulatory, financial and other risks.
• We could be adversely affected if we or third parties operating certain of our co-owned facilities are unable to continue to operate our facilities in a successful manner.
• If we are unable to obtain an adequate supply of fuel, our ability to operate our facilities could be limited.
• We, the co-owners or the operating agent for our co-owned coal plants may retire one or more of our coal-fired generation units in advance of our currently assumed retirement dates which could result in rate recovery challenges.
• The operational life of some of our generating facilities exposes us to potential costs to continue to meet efficiency, reliability and environmental compliance standards.
• Our access to, and cost of, capital could be adversely affected by various factors, including market conditions, limitations on the availability of federally-guaranteed loans and our credit ratings. Significant constraints on our access to, or increases in our cost of, capital may limit our ability to execute our business plan by impacting our ability to fund capital investments and could adversely affect our financial condition and results of operations.
• Our capital expenditures, particularly in relation to the additional units under construction at Plant Vogtle, are projected to be significant and will continue to increase our debt, which is constraining certain of our financial metrics and may also adversely affect our credit ratings which would likely increase our borrowing costs and could decrease our access to capital.
• Changes in fuel prices could have an adverse effect on our cost of electric service.
• Our ability to meet our financial obligations could be adversely affected if our members fail to perform their contractual obligations to us.
• Our costs of compliance with environmental laws and regulations are significant and have increased in recent years. Potential new or stricter environmental laws and regulations, including those designed to address air and water quality, greenhouse gas emissions, including carbon dioxide, coal combustion residuals and other matters, may result in significant increases in compliance costs or operational restrictions.
• Technology and information systems utilized by us, our members and third parties with whom we do business are subject to risk of failure, loss of access or cybersecurity breaches which could affect our ability to operate and expose us to litigation, regulatory action and reputational harm.
• We and our members continue to be subject to risks related to the COVID-19 pandemic.
• We are subject to the risk that counterparties may fail to perform their contractual obligations which could adversely affect us.
• Regardless of our financial condition, investors’ ability to trade our debt securities may be limited by the absence of an active trading market and there is no assurance that any trading market will develop or continue to remain active.