Berkshire Hathaway Energy

[RadMan24]

Are the ESG folks really this lazy they can't delve into the facts of Berkshire Hathaway and understand that its a climate leader rather than a laggard? https://www.ft.com/content/9ed603c4-ecbb-4181-a78b-f3b9f16703a8

 

Iowa customers have some of the cheapest energy in the country, and in a few years, will get all of its electricity from wind, with coal as a backstop. Coal will be out of the BHE system by 2049 and nat gas will be down to a trickle by 2050. Berkshire is the largest investor owned utility with renewable infrastructure. BNSF and BHE disclose Scope 1 and 2 emission reduction goals and both are evaluating how to get to a net zero pathway by 2050. 

 

Yet, these ESG providers don't look under the hood and have started influenced passive investor voting decisions. For Berkshire this won't matter much for now, but this is poor accountability. 

[jbwent63]

23 hours ago, RadMan24 said:

Are the ESG folks really this lazy they can't delve into the facts of Berkshire Hathaway and understand that its a climate leader rather than a laggard? https://www.ft.com/content/9ed603c4-ecbb-4181-a78b-f3b9f16703a8

 

Iowa customers have some of the cheapest energy in the country, and in a few years, will get all of its electricity from wind, with coal as a backstop. Coal will be out of the BHE system by 2049 and nat gas will be down to a trickle by 2050. Berkshire is the largest investor owned utility with renewable infrastructure. BNSF and BHE disclose Scope 1 and 2 emission reduction goals and both are evaluating how to get to a net zero pathway by 2050. 

 

Yet, these ESG providers don't look under the hood and have started influenced passive investor voting decisions. For Berkshire this won't matter much for now, but this is poor accountability. 

They probably don't know that BHE files its own 10-K with all kinds of disclosure as if it is a stand alone business (same with BNSF).

[yesman182]

 

U.S. approves major transmission line from Wyoming to Utah

https://www.reuters.com/world/us/us-approves-major-transmission-line-wyoming-utah-2022-05-26/

 

Has Berkshire Hathaway Energy detailed what this project will cost, and how long it will take? It's nice to see that they are going to be deploying more cash, but I am curious if someone knows how many billion this project will cost and when Berkshire might start seeing a return. 

[ValueMaven]

Yes.  If you look at BHE's annual investor presentation they have this as pending CAPEX --- along with another $25B or so of upgrades that are required.  This is regulated, long duration return type of stuff - but a great example of a public/private infra buildout which is needed in the USA in a big way.  

[Cigarbutt]

^The Gateway South project is interesting on many levels.

The construction is scheduled to start soon and the transmission infrastructure should be operational in 2024.

From the linked regulatory document (showing the work done by PacifiCorp to establish the project's value in terms of need to meet new demand and increased reliability), the cost of the project is 2.07B (2.4B with Gateway West segment, page 49). The document also contains technical aspects and financial numbers.

Gateway_South_Transmission_Project_CPCN_Application.pdf (rockymountainpower.net)

The total revenue requirement will be based, as usual with the usual local jurisdictional twists, on the rate base (assets - accumulated depreciation) (pages 50-1).

[ValueMaven]

Thank you @Cigarbutt

[MCR]

https://reneweconomy.com.au/warren-buffett-snaps-up-two-australian-solar-farms-and-big-pv-and-storage-pipeline/

[ValueMaven]

Thank you for posting.  No mention of the pipeline storage assets in the article, or the terms of the transaction/size

[KPO]

21 hours ago, MCR said:

https://reneweconomy.com.au/warren-buffett-snaps-up-two-australian-solar-farms-and-big-pv-and-storage-pipeline/

Thanks for sharing. This kind of made me laugh, although I suppose me knowledge of Australia isn’t any better:

 

”Buffett’s main renewables play so far has been through MidAmerican Energy, based in Dec Moines, Idaho”

[ValueMaven]

The more I study Sempra Energy, the more annoyed I am that Berkshire lost out on the ONCOR asset.  That would have been an awesome asset inside of BHE.  Such is life 

[yesman182]

What is the elevator pitch on sempra? 

[ValueMaven]

On 7/20/2022 at 10:14 PM, yesman182 said:

What is the elevator pitch on sempra? 

 

I am not a sempra bull ... so I dont know.  They basically have three different businesses a traditional regulated utility business, a vast LNG business both here and in Africa, and ONCOR.  Oncor is a very unique asset.  Was a mistake for BHE to lose out.  That said BHE has about~$50B of CAPEX project over the next few decades ... so we will see 

[ValueMaven]

Great article in Barrons on BHE yesterday 

 

https://www.barrons.com/articles/warren-buffett-berkshire-hathaway-utility-51661548484

[Dynamic]

The same article for those without a subscription to Barrons.

https://jnews.uk/berkshire-hathaways-utility-business-highlights-the-warren-buffett-magic/

Edited August 31, 2022 by Dynamic

[ValueMaven]

This is an amazing asset and would have been perfect for BHE.  To bad Berkshire didnt rebid.

 

https://www.wfaa.com/article/money/business/texas-power-grid-a-great-quarter-oncor-reports-229-million-in-profits-during-hot-texas-summer/287-1a45fb21-04a2-47a0-b126-3b2a4d8223fc

[BiggieCheese]

Gov. Justice: BHE Renewables and WV announce $500m investment to build global aerospace manufacturing hub powered by renewable energy microgrid

[RadMan24]

On 9/13/2022 at 5:10 PM, BiggieCheese said:

Gov. Justice: BHE Renewables and WV announce $500m investment to build global aerospace manufacturing hub powered by renewable energy microgrid

 

That story won't ever make the airwaves, let alone the letter sent to Buffett for the idea, but what a boost of energy for that small WV town. 
 

Edit: Thanks for sharing 

Edited September 15, 2022 by RadMan24

[Ulti]

https://www.brkenergy.com/assets/pdf/eei-presentations/2022-eei-presentation.pdf

[Xerxes]

Still four months away but super excited to read what the Chairman has to say about his energy bet in this annual letter in Feb 2023. 
 

A fifth pillar next to the other four: insurance, BHE, rail, Apple ? 
 

[woodstove]

Thank you Ulti for posting the BHE presentation slides.

[ValueMaven]

https://www.wsj.com/articles/berkshire-hathaways-energy-idea-is-a-bad-fit-for-texas-c21655a3?mod=Searchresults_pos4&page=1

[james22]

- ClearView Energy Partners, a Washington, D.C.-based research firm, thinks the [energy] insurance program bill has a good chance of passing the state House.

 

- Building out 10 gigawatts—the upper limit of what the bill envisions—would cost about $18 billion, according to a recent estimate from the Lower Colorado River Authority, a nonprofit public utility with headquarters in Austin, Texas.

 

 - Such plants would earn a regulated rate of return on equity—with a ceiling of 10% a year—whether they end up being used or not.

 

Nice work if you can get it.

[Blugolds]

15 hours ago, ValueMaven said:

https://www.wsj.com/articles/berkshire-hathaways-energy-idea-is-a-bad-fit-for-texas-c21655a3?mod=Searchresults_pos4&page=1

 

Author lost me at “Proposed changes to state’s power market would be costly, and undermine wind and solar”.

 

Wind and Solar, the answer to everyone’s problems, as long as they dont use logic or math… 

[ValueMaven]

I agree - terrible article

[rogermunibond]

It's one lost sentence in the article but really for ERCOT to have better reliability the best solution is to connect to other MSOs.

 

"Texas could also connect its isolated grid to neighboring ones."