There are risks associated with the operation of NEP's renewable energy projects and pipelines, including: •breakdown or failure of, or damage to, turbines, blades, blade attachments, solar panels, mirrors, pipelines and other equipment, which could reduce a project’s energy output or a pipeline's ability to transport natural gas at expected levels or result in personal injury or loss of life; •catastrophic events, such as fires, earthquakes, hurricanes, severe weather, tornadoes, ice or hail storms, other meteorological conditions, landslides and other similar events beyond NEP's control, which could severely damage or destroy all or a part of a project, pipeline or interconnection and transmission facilities, reduce its energy output or capacity, or result in personal injury or loss of life; •technical performance below expected levels, including, but not limited to, the failure of wind turbines, solar panels, mirrors and other equipment to produce energy as expected due to incorrect measures of expected performance provided by equipment suppliers; •interference from nearby wind projects or other structures; •leaks, explosions or mechanical problems at a pipeline, which could reduce a pipeline's ability to transport natural gas at expected levels or result in significant damage to property, environmental pollution, personal injury or loss of life; •increases in the cost of operating the projects; •operator, contractor or supplier error or failure to perform or to fulfill any warranty obligations; •serial design or manufacturing defects, which may not be covered by warranty; •extended events, including, but not limited to, force majeure, under certain PPAs that may give rise to a termination right of the customer under such a PPA (renewable energy counterparty); •failure to comply with permits and the inability to renew or replace permits that have expired or terminated; •the inability to operate within limitations that may be imposed by current or future governmental permits; •replacements for failed equipment, which may need to meet new interconnection standards or require system impact studies and compliance that may be difficult or expensive to achieve; •land use, environmental or other regulatory requirements; •disputes with the BLM, other owners of land on which NEP's projects are located or adjacent landowners; •changes in laws, regulations, policies and treaties; •government or utility exercise of eminent domain power or similar events; •existence of liens, encumbrances and other imperfections in title affecting real estate interests; and •insufficient insurance, warranties or performance guarantees to cover any or all lost revenues or increased expenses from the foregoing.