Despite the action, we believe PEC may continue to face uncertainty and adversity related to many factors facing utilities throughout the state, including an uncertain regulatory environment and exposure to ERCOT-related risks. We believe PEC and its primary power provider, Lower Colorado River Authority (LCRA), as with many other Texas utilities, could continue to face challenges associated with asset winterization costs, the ERCOT market’s relative price volatility (especially pertaining to inflated ancillary service charges as well as heightened gas price volatility and supply reliability risks), extreme temperature and demand fluctuations, and weaker grid interconnectivity as compared with grids in other states. Rating pressure exists to the extent PEC or LCRA is unable to manage the risks associated with participation in the ERCOT market, if our view of PEC’s economic base and competitiveness deteriorates, or if PEC’s predominantly carbon-based power supply exposes it to extraordinary costs, including regulatory mandates.