Categories
Berkshire Hathaway Energy

WEIM Generates Millions in Benefits for Berkshire’s Utilities Amidst Winter Challenges

(BRK.A), (BRK.B)

The Western Energy Imbalance Market (WEIM), which includes two Berkshire Hathaway utilities, continues to prove its worth, with cumulative benefits reaching an impressive $5.49 billion in the first quarter of 2024. Notably, its role in ensuring regional coordination became evident during a January cold snap that tested the Northwest’s grid reliability.

With 22 participants onboard, the WEIM yielded $436 million in benefits during this quarter alone, providing substantial relief on expenses for utilities and their customers. NV Energy and PacifiCorp, both subsidiaries of Berkshire Hathaway Energy, reaped significant rewards. NV Energy accrued $32.77 million, while PacifiCorp secured $73.83 million, further underlining the tangible advantages of active participation in the WEIM.

Its ability to efficiently transfer power across a vast and diverse landscape played a crucial role in meeting the heightened demand during the extreme cold spell from January 13-15, particularly in the Pacific Northwest. During this period, energy transfers from California and the Southwest proved invaluable, offering much-needed support to areas under strain due to increased electricity demand.

Established in 2014, the WEIM operates as a real-time electricity market, facilitating the buying and selling of power close to the time of generation and consumption. Powered by cutting-edge technology, the market excels in identifying and delivering the lowest-cost resources to meet immediate power needs while effectively managing congestion on transmission lines to uphold grid reliability.

© 2024 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.

Categories
Berkshire Hathaway Energy

Shaw Industries Partners with BHE Renewables for Renewable Energy

(BRK.A), (BRK.B)

Berkshire Hathaway’s Shaw Industries Group, Inc., a leading global supplier of carpet, hardwood, tile, and other specialty products, signed a virtual power purchase agreement in Mid-February with BHE Renewables, a subsidiary of Berkshire Hathaway Energy. This landmark agreement reflects Shaw’s commitment to sustainability and its ongoing efforts to reduce its environmental footprint.

Under the terms of the agreement, Shaw will invest in renewable energy generated by BHE Renewables’ 200-megawatt Flat Top wind farm in Texas. The wind farm, operational since 2018, will provide Shaw with a sustainable energy source as it continues to supply residential and commercial markets worldwide.

Kellie Ballew, Shaw’s chief sustainability and innovation officer, emphasized the company’s dedication to combating climate change. “Shaw strives to be a positive force in the global effort to mitigate climate change,” Ballew stated. “That’s a fundamental component of our sustain[HUMAN]ability® strategy, which focuses on people and the planet. This latest endeavor builds upon our decades of work in this realm.”

Shaw’s investment in renewable energy aligns with its ambitious sustainability goals. The company aims to reduce its operational footprint by approximately 15 percent annually over the next 15 years, building on its significant achievements in reducing greenhouse gas emissions. Since 2010, Shaw has already decreased its Scope 1 and Scope 2 greenhouse gas emissions by more than 50 percent.

Moreover, this partnership with BHE Renewables marks a significant step toward Shaw’s objective of achieving net-zero operations (Scope 1 and 2) by 2030. Notably, Shaw’s commercial carpet operations worldwide have been carbon neutral since 2018, demonstrating the company’s proactive approach to sustainability.

Alicia Knapp, President and CEO of BHE Renewables, expressed pride in supporting Shaw’s sustainability vision. “We are proud to support Shaw and its vision to create a better future,” Knapp commented. “We share their commitment to people and the planet and look forward to delivering clean energy to help them achieve their sustainability goals.”

BHE Renewables owns more than 4,000 megawatts of solar, wind, geothermal and hydro projects nationwide, which produce clean energy for both the wholesale market and for customers under long-term power purchase agreements.

Through this collaboration, Shaw Industries, which has more than $7 billion in annual revenue and approximately 20,000 associates worldwide, reaffirms its position as an industry leader in sustainability, leveraging renewable energy to drive positive environmental change while continuing to deliver high-quality products to its customers worldwide.

© 2024 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 a 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.

Categories
Berkshire Hathaway Energy

Berkshire Hathaway Acquires Major Renewable Energy Project

(BRK.A), (BRK.B)

In a significant move towards bolstering its renewable energy portfolio, Berkshire Hathaway has finalized the acquisition of the Arco Wind and Solar project from NorthRenew Energy. The project, located in southeastern Idaho’s Bingham and Bonneville counties, will eventually bring 1.2 gigwatts of power online and marks a strategic investment by Berkshire Hathaway Energy’s subsidiary, PacifiCorp, into clean energy infrastructure.

Upon completion, the Arco Wind and Solar project is expected to contribute 300 MW of power to the grid when it becomes operational in 2026. Furthermore, there are plans to potentially augment its capacity by an additional 800 MW of solar energy in the future.

Garth Klimchuk, Founder and Managing Partner of NorthRenew Energy, expressed enthusiasm about the acquisition, highlighting the collaboration with one of North America’s largest utility companies. He emphasized the joint effort to advance the Arco project towards construction, indicating a commitment to expanding renewable energy initiatives.

PacifiCorp, as part of Berkshire Hathaway, is a prominent player in the energy sector, particularly as the largest grid operator in the western United States. Serving customers across Oregon, Washington, California, Utah, Idaho, and Wyoming, PacifiCorp’s involvement underscores the company’s commitment to sustainable energy solutions.

With construction set to commence in 2025 and commercial operations scheduled for late 2026, the Arco Wind and Solar project represents a significant step forward in the region’s transition towards renewable energy sources. The project’s integration of wind, solar, and storage technologies showcases a comprehensive approach to clean energy generation and aligns with broader efforts to combat climate change.

Berkshire Hathaway’s acquisition of the Arco project not only underscores its commitment to environmental sustainability but also positions the company as a key player in driving the transition towards a greener energy landscape. As renewable energy continues to gain momentum globally, investments like these signal a paradigm shift towards a more sustainable and resilient energy future.

© 2024 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 a 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.

Categories
Berkshire Hathaway Energy

Berkshire Hathaway Energy Completes Acquisition of Dominion Energy’s Stake in Cove Point LNG

(BRK.A), (BRK.B)

On the first day of September, Berkshire Hathaway Energy consummated its acquisition of Dominion Energy’s fifty-percent limited partnership stake in Cove Point LNG, LP. This boosted Berkshire Hathaway Energy’s ownership interest to seventy-five percent. The ownership interest is held within BHE GT&S, LLC, a Berkshire Hathaway Energy unit.

A subsidiary of BHE GT&S is the general partner and operator of the Cove Point natural gas pipeline and its liquefied natural gas terminal located in Lusby, Maryland. A subsidiary of Brookfield Infrastructure Partners holds the remaining twenty-five percent limited partnership interest in Cove Point LNG, LP.

On July 10, 2023, Berkshire Hathaway Energy announced that it had reached an agreement to acquire Dominion Energy’s limited partnership interest in Cove Point LNG, LP, for cash consideration of $3.3 billion.

Paul Ruppert, president of BHE GT&S, said: “We are pleased for this opportunity to own a greater stake in the Cove Point LNG business. BHE GT&S will continue its excellent operating and commercial performance at Cove Point, which plays an important role in Berkshire Hathaway Energy’s delivery of clean, low-cost and sustainable energy solutions to customers and communities.”

© 2023 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 a 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.

Categories
Berkshire Hathaway Energy

Berkshire Hathaway to Supply Solar Power to the Sphere in Las Vegas

(BRK.A), (BRK.B)

Berkshire Hathaway’s NV Energy will be powering Las Vegas’s newest entertainment venue, Sphere, with renewable energy. NV Energy and MSG Las Vegas LLC have jointly applied for approval from the Public Utility Commission for a 25-year agreement.

The ground-breaking Sphere is billed as a next-generation entertainment medium that will bring wonder to the world and redefine the future of live entertainment. Sphere will be powered by cutting-edge technologies that ignite the senses and transport audiences to places both real and imagined. The first Sphere venue is currently under construction in Las Vegas and is expected to open in fall 2023. Once open, Sphere will host a wide variety of events, including concerts and residencies from the world’s biggest artists; Sphere Experiences from leading Hollywood creatives; and premier marquee events.

Sphere will be a “model for renewable energy use by entertainment venues around the country,” according to the company.

Rich Claffey, Executive Vice President and Chief Operations Officer of Sphere, noted, “Just as Sphere is setting a new standard for immersive live entertainment, the venue is also setting an industry standard when it comes to renewable energy. From the outset, we designed Sphere to minimize environmental impact and to help create a sustainable operation well into the future. We’re proud to enter into this agreement with NV Energy and partner with them to achieve both of those important goals.”

An estimated 70% of the power needed by the entertainment venue will be derived from dedicated solar and battery resources.

The new NV Energy solar and battery facility, if approved by the Public Utilities Commission of Nevada, will serve Sphere and additional NV Energy customers.

© 2023 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 a 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.

Categories
Berkshire Hathaway Energy

Berkshire Hathaway Energy Gets Big Benefits From Western Energy Imbalance Market

(BRK.A), (BRK.B)

Berkshire Hathaway Energy’s PacifiCorp and NV Energy received combined benefits of $83.65 million from their participation in the Western Energy Imbalance Market (WEIM) during the second quarter of 2023.

In total, the WEIM has generated $798.7 million in benefits in the first half of 2023, and the real-time energy market’s $379.91 million in second-quarter results is attributed to the growing number of participants providing diversity and economical energy transfers replacing more expensive generation.

The WEIM is designed to enable participating entities to buy and sell power close to the time electricity is consumed. With state-of-the art technology, the market finds and delivers lowest-cost resources to meet immediate power needs and manages congestion on transmission lines to maintain grid reliability. It has set a new record of $4.2 billion in cumulative benefits since the market was launched in late 2014.

The WEIM also provides system operators real-time visibility across neighboring grids, resulting in more efficient balancing of supply and demand.

Since 2020, the number of Western EIM participants has doubled to 22, further diversifying energy resources while improving transmission efficiencies and reducing greenhouse gas emissions. The Western Area Power Administration Desert Southwest region, El Paso Electric and AVANGRID Renewables are the WEIM’s newest entities, joining in April 2023. The WEIM now includes portions of Arizona, California, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming, Texas and extends to the border with Canada.

The environmental benefits of the market are also noteworthy. With more variable resources such as solar and wind on the grid, excess clean power would typically tend to be curtailed and go unused to keep the grid from becoming overloaded. With greater regional coordination enabled by the WEIM, that clean power can be moved across a large geographic area to displace other resources.

Since 2014, greenhouse gas emissions have been reduced by more than 878,000 metric tons, or the equivalent of taking almost 184,000 passenger cars off the road for one year.

Additionally, grid operators have more resource options for balancing supply and demand, which is particularly helpful during summer evenings when electricity use remains high but solar generation is declining.

© 2023 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 a 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.

Categories
Berkshire Hathaway Energy

Berkshire Hathaway May Have Another Energy Acquisition on the Horizon

(BRK.A), (BRK.B)

Hot on the heels of Berkshire Hathaway Energy’s acquisition of Dominion Energy’s 50 percent stake in the Cove Point LNG facility in Maryland, the company may have another acquisition opportunity on the horizon.

On Thursday, July 27, American Electric Power’s president & CEO Julie Sloat said during an earnings conference call that the utility company would be divesting its non-regulated assets.

“When people buy AEP shares or invest in our bonds, they’re not necessarily looking to buy something that is not a traditional regulated utility type of business,” Sloat noted.

The company has a minority stake in Prairie Wind Transmission, which is co-owned with Berkshire Hathaway Energy and Evergy. As of June 30, AEP’s stake was valued at $19 million.

Berkshire Hathaway Energy, which owns 25 percent of Prairie Wind Transmission, and Evergy, which owns 50 percent, are the likely suitors, and the only question is which company will end up with AEP’s stake.

In addition to Prairie Wind Transmission, AEP will be divesting its ownership in Pioneer Transmission, which it co-owns with Duke Energy, and its stake in Transource Energy, its majority-owned joint venture with Evergy.

© 2023 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 a 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.

Categories
Berkshire Hathaway Energy

Berkshire Hathaway Purchases Dominion Energy’s Stake in Cove Point LNG

Berkshire Hathaway Energy has successfully executed an agreement to acquire Dominion Energy’s 50% limited partnership stake in the Cove Point LNG, LP business.

Pending regulatory approvals, the purchased interest will be held under the umbrella of BHE GT&S, LLC, a subsidiary of Berkshire Hathaway Energy. A subsidiary of BHE GT&S already serves as the general partner and operator of the Cove Point natural gas pipeline and its liquefied natural gas terminal, both situated in Lusby, Maryland.

With a transaction value of $3.3 billion, the deal will primarily be funded through the utilization of existing cash reserves, including proceeds from the liquidation of specific investments. Once the transaction is finalized, Berkshire Hathaway Energy will bolster its ownership by securing a 75% limited partnership stake in Cove Point LNG, LP. It is worth noting that the remaining 25% limited partnership interest in Cove Point LNG, LP will be retained by a subsidiary of Brookfield Infrastructure Partners.

Paul Ruppert, the president of BHE GT&S, expressed his pride in the operations conducted at Cove Point and shared his excitement regarding this new opportunity to enhance their ownership in these globally renowned facilities. He emphasized that the dedicated Cove Point team would continue to prioritize providing secure, affordable, and dependable service to their esteemed customers.

Located on the western shore of the Chesapeake Bay, the facility is the first such facility on the East Coast. It is recognized as one of the most technically advanced and environmentally sensitive LNG facilities in the world, and has a storage capacity of 14.6 billion cubic feet (BCF) and a daily send-out capacity of 1.8 BCF.

Cove Point produces LNG under 20-year contracts for ST Cove Point, a joint venture of Sumitomo Corporation and Tokyo Gas, and for Gail Global (USA) LNG, the U.S. affiliate of GAIL (India) LTD.

Since the facility first entered commercial service in April 2018 for natural gas liquefaction and export, LNG produced from the facility has supported the energy needs of 28 countries, including many in Europe in recent months. And Cove Point LNG loaded its 300th commercial cargo at the end of July.

With this strategic move, Berkshire Hathaway Energy continues to expand its portfolio of world-class assets. This acquisition not only aligns with the company’s long-term growth strategy but also reinforces its position as a prominent player in the ever-evolving energy sector.

© 2023 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 a 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.

Categories
Berkshire Hathaway Energy

Berkshire Hathaway’s NV Energy Selects Energy Vault for 440 MWh Energy Storage System in Nevada

(BRK.A), (BRK.B)

Berkshire Hathaway’s Nevada utility, NV Energy, has chosen Energy Vault Holdings, Inc., a leader in sustainable grid-scale energy storage solutions, to provide a 440 MWh Energy Storage System.

The Battery Energy Storage System (BESS), will be one of the largest in Nevada and is expected to start construction in Q2 2023 with commercial operation expected by the end of 2023.

The 220MW/440MWh grid-tied BESS will be deployed at a site located near Las Vegas. The 2-hour energy storage system is designed to store and dispatch excess renewable energy, including wind and solar power.

The BESS will be charged and discharged on a daily basis and designed to dispatch stored renewable energy at peak consumption hours to help meet the high demand during Nevada’s peak load hours.

“Energy Vault is pleased to be selected by NV Energy for a mission critical project supporting Nevada’s largest electric provider in achieving its goal of net zero emissions by 2050,” said Marco Terruzzin, Chief Commercial and Product Officer, Energy Vault. “This is Energy Vault’s first public utility customer for our short duration energy storage solutions, which furthers our strategy to be the energy storage company of choice for utilities, IPPs and large energy users. We look forward to beginning our relationship with NV Energy to help them meet their IRP needs for both short and long duration energy storage.”

© 2022 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 a 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.

Categories
Berkshire Hathaway Energy

Berkshire Hathaway Energy Subsidiary to Move Richmond Headquarters

(BRK.A), (BRK.B)

Berkshire Hathaway’s BHE GT&S, a standalone subsidiary of Berkshire Hathaway Energy, will have move its Richmond, Virginia headquarters to two Innsbrook office buildings that it recently bought from credit card company Capital One.

BHE GT&S paid a total of $20.75 million for 200,000 square feet of office space in buildings Knolls 4 and Knolls 5 located at 10700 and 10750 Capital One Way.

The deal closed Dec. 1.

The buildings are currently empty, and after renovation will replace the current BHE GT&S headquarters located in Reynolds Crossing. Innsbrook, a mixed-use corporate center in Central Virginia founded in 1979 and is just three minute from Richmond.

BHE GT&S operates around 5,400 miles of transmission lines in the eastern U.S and 756 bcf of total natural gas storage – with 420 bcf of working gas capacity – along with gathering, processing and field services businesses. BHE GT&S also provides a variety of LNG solutions through Pivotal LNG, its 25% operating stake in Cove Point LNG – the import, export and liquefaction facility in Lusby, Maryland – and other LNG processing and storage initiatives.

© 2022 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 a 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.