Regulation is of particular interest for the operating function, as the regulator is likely to need to work closely with the project company to establish a baseline of data to be used for tariff setting, arguing for additional tariff increases, coordinating tariff with capital investment plans and responding to changes in law and the requirements for improved performance through additional investment. This will complicate the project company's assessment of financial viability and profitability of the project, which will be subject to the risk of tariffs set below anticipated or required levels.