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Risks
1. Increasing Customer Attrition: Chesapeake Utilities faces competition from other established energy providers. If competitors increase their customer base, this may lead to attrition of Chesapeake Utilities’ customers.
2. Natural Disasters: Natural disasters such as floods, hurricanes, earthquakes, and other extreme weather can cause destruction of pipelines, breaking of equipment, and other types of damage to Chesapeake Utilities’ operations. These events can result in service disruptions, repair costs, and increased customer churn.
3. Rising Regulation: As energy companies continue to move toward a cleaner, more sustainable energy mix, Chesapeake Utilities may face greater scrutiny and regulation from state and federal agencies. This could lead to increased costs and a longer timeline for approval of projects.
4. Cyber Security Risk: Chesapeake Utilities stores proprietary and confidential customer data, which is prone to potential cyber security risks. A cyber attack affecting this data could potentially result in customer churn, as well as financial and legal liabilities.