(BRK.A), (BRK.B)
It may seem like a longshot, but ominous storm clouds forming over the planned acquisition of Hawaiian Electric Company by NextEra Energy may mean an opportunity for Berkshire Hathaway Energy if the deal falls through.
Key to NextEra’s purchase of the Honolulu-based utility is the approval of the Public Utility Commission, and that commission just had a major change in leadership.
Governor David Ige, who has opposed the merger, and has openly questioned NextEra Energy’s commitment to Hawaii’s goal of 100% renewable energy, just appointed a new PUC Commissioner.
On July 1, Thomas G. Gorak was sworn as a Commissioner to the Hawaii Public Utilities Commission after being appointed to the Commission by Governor Ige on June 29.
Berkshire’s Proven Commitment to Renewable Energy
Berkshire Hathaway not only believes in renewable energy, it already has one of the largest renewable energy portfolios in the world. Its subsidiary BHE Renewables encompasses BHE Solar, BHE Wind, BHE Geothermal, BHE Hydro as well as renewable project development and commercial management. BHE Renewables owns solar, wind, geothermal and hydroelectric projects in eight states that produce energy for both the wholesale market and for customers under long-term power agreements.
The company already has 3,877 megawatts of renewable energy capacity, including one of the world’s largest solar farms, the 579 MW Solar Star project in southern California.
Another example of Berkshire’s commitment to renewable energy is in Iowa, where it is aggressively working towards producing 100% of the state’s energy needs through wind power.
In April, Berkshire’s MidAmerican Energy Company announced plans for a $3.6 billion, 2,000 megawatt wind farm in Iowa that will feature 1,000 wind turbines.
Does Berkshire Have an Interest in Hawaiian Electric?
Berkshire already owns BHE Hydro’s Wailuku run-of-river 10 megawatt hydro project in Hawaii. The hydroelectric project consists of a massive 60-inch pipeline located 2,000 feet above sea level that carries water nearly three miles, transporting it from the Wailuku River diversion all the way to the powerhouse.
In addition, Berkshire recently registered MidAmerican Energy Services LLC as a new business in Hawaii.
It could just be possible that Warren Buffett will be saying “aloha” in Hawaii.
© 2016 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.