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EFTA01366499

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Amendment #4 Page 70 of 868 9f ref mil Specifically, hydroelectric power generation facilities requre continuous water flow for their °retailer,. Shifts in weather or climate patterns, seasonal geoptation the timing and rate d meth% mei off and other factors beyond our coned may reduce the water flow to our hydroielectnc facilities In aSclmon water ngts are also generally owned or controlled by gorernment metes that reserve the right to ccrtrol water levels or may encase water-use requirements as a condition of license renewal Any material reduction in the water flow to our hydro-electnc facilities voted lint our dairy to produce and rrerket electncrty from these facilities and could haw a material adverse effect on the results dos operators. Fa example. Beard w cixrently expenencing a hstorc drought that has led to °seamen. blackouts due to the country's reliance on hydroelectric power. The drought has affected the erectncoy production at certain of our hydro-electnc facilities If the ckought continurs in these areas it could rrotenary reduce electricity producoon at certain d our rrydroelectnc fawn es and any additional hydro-electnc facilities we may acquire in the future We base our irwestnent decisions witi respect to each energy facility on the findings of related studies conducted on-see prof to oxistructon Of based on historical cordit oils at exisang facilites In additen we rely on hydrological etudes and data to confirm there is SuffiCtent water now available to generate enough electricity la our hycroelednc ;coeds to be economically ve de and such studee may prove urreliade etrivever, actual climatic conditions a: a tottery site may not conform to tne fircirgs of these studes and therefore, our energy facilities may rot meet anticipated production levels or the rated capacity of our generation assets which could adversey affect our business financial condition and results of operatens are cash flows For example. in selecting aces in incle

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