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Berkshire Hathaway Energy

Berkshire Hathaway’s Utilities Saved $14.68 Million in Q1 2018 Thanks to EIM

(BRK.A), (BRK.B)

Two of Berkshire Hathaway’s utilities, PacifiCorp and NV Energy, saved a combined $14.68 million so far this year through the western Energy Imbalance Market (EIM).

The California Independent System Operator (ISO) has released its western Energy Imbalance Market (EIM) 2018 first-quarter benefits report that shows total savings have reached $330.52 million since the market’s launch in November 2014.

The benefits for January, February and March 2018 were $42.08 million for the six participating members, and the gross benefits for Berkshire’s NV Energy was $4.17 million and PacifiCorp was $10.51 million.

The western EIM platform automatically finds and delivers low-cost energy to serve consumers in Arizona, California, Idaho, Nevada, Oregon, Utah, Washington and Wyoming. Optimizing diverse resources from a large geographic area enables more effective use of carbon-free generation besides reducing costs.

In 2014, Berkshire Hathaway Energy’s PacifiCorp agreed to become the first participant in the Energy Imbalance Market, and NV Energy joined in December 2015.

The market will continue to grow in the coming years, with the Balancing Authority of Northern California/Sacramento Municipal Utility District set to begin participating in April 2019. Salt River Project of Phoenix, Seattle City Light and the Los Angeles Department of Water and Power are slated to enter the market in April 2020.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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BNSF

BNSF Offering Large Hiring Bonuses

(BRK.A), (BRK.B)

These are good times to be working on the railroad.

Not so far back in 2016, BNSF Railway was battling lower coal shipping volumes by mothballing hundreds of locomotives and laying off workers. That year it furloughed roughly ten-percent of its workforce.

Lines of idled BNSF locomotives that were in storage on tracks in rail yards near Oklahoma City and Wichita, Kansas, were a visual reminder that 2016 car loads slumped down dramatically from 2015 levels.

Now, with carload volumes surging 10.6 percent year-over-year, BNSF is hiring and finds itself competing for workers in a tight labor market. As a result, BNSF is offering hiring bonuses of as much as $25,000.

Union Pacific is offering similar bonuses.

The railroads are hiring during a time of very low unemployment. Nationally, the rate is 4.1 percent, but in Nebraska, where BNSF is offering $20,000 for hiring of diesel mechanics and for railcar repair, the unemployment rate is only 2.8 percent.

The incentives come with a 3 year hold-down and are forfeited if the employee leaves the location or job for any reason.

Among the locations where BNSF is offering $25,000 for certain types of jobs include Chicago, Denver, Kansas City, Topeka, Denver, and Chicago.

“We are constantly evaluating the market and will use this approach when it makes sense to recruit talented individuals for hard to fill positions or locations,” BNSF spokeswoman Amy Casas was quoted in the Wall Street Journal.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.