Berkshire Hathaway’s utilities NV Energy and PacifiCorp racked up over $16 million in benefits in the 2nd quarter through their participation in the Western Energy Imbalance Market.
In 2014, Berkshire Hathaway Energy’s PacifiCorp agreed to become the first participant in a new Energy Imbalance Market (EIM) as a way to balance electricity in-flows and out-flows on a regional basis and bring millions of dollars in benefits to participating utilities.
The Western Energy Imbalance Market total benefits have now surpassed $400 million.
For the 2nd quarter, Berkshire Hathaway’s NV Energy showed benefits of $5.34 million and Berkshire’s PacifiCorp achieved benefits of $11.67 million.
The Western EIM’s state-of-art technology automatically finds and delivers the lowest cost energy to serve more than 42 million consumers in eight western states, and extending to the border with Canada. In addition to optimizing diverse resources from a larger pool for lower costs, the EIM favors carbon-free generation, an added environmental benefit.
The market is poised to grow, with the Balancing Authority of Northern California/Sacramento Municipal Utility District (BANC/SMUD) set to begin participating in April 2019. The Los Angeles Department of Water and Power, Salt River Project of Phoenix, and Seattle City Light will follow 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.