(BRK.A), (BRK.B)
Berkshire Hathaway’s PacifiCorp has issued the largest request for proposals for energy projects in company history, seeking competitively priced resources that can connect to its 10-state transmission system. Already the largest regulated utility owner of wind power in the West, these projects will significantly increase the amount of renewable energy resources serving customers in six western states.
The company does business as Pacific Power in California, Oregon and Washington and as Rocky Mountain Power in Idaho, Utah and Wyoming.
PacifiCorp’s most recent Integrated Resource Plan outlines the company’s plans to add 1,823 megawatts of new solar resources, 595 megawatts of new battery energy storage and 1,920 megawatts of new wind resources by the end of 2023. This is enough to power nearly three million typical homes with renewable energy.
The company will accept bids featuring different resource types and bid structures, including forms of power-purchase, battery storage, and build-transfer agreements. PacifiCorp will not be submitting any self-build resources and therefore won’t be competing with independent developers on their projects. Projects must be able to achieve commercial operation by December 31, 2024. Long-lead projects, such as pumped storage, can submit offers with commercial operation dates beyond December 31, 2024.
“These projects represent PacifiCorp’s longstanding and enduring commitment to create an energy future that is affordable, reliable and increasingly sustainable,” said Rick Link, PacifiCorp vice president of resource planning.
“Our All-Source RFP is a catalyst to help realize that future and enable our customers and communities across the West to benefit from lower-cost renewable energy to grow their economies, run their businesses and homes.”
The 2020 all-source request for proposals is based on findings from a broad range of studies and technical analyses developed through an open and extensive public process, with input from an active and diverse group of stakeholders, including customer advocacy groups, community members, regulatory staff, and other interested parties. PacifiCorp met with stakeholders in five states and hosted 18 public-input meetings over nearly two years to develop a plan to provide the cleanest, least-risk and lowest-cost electricity for customers.
While it is anticipated that most bids will feature wind and solar resources, projects of any variety of qualifying energy production will be considered, allowing developers to present technologies and resources that fit their business model and best position them to compete in the energy market. PacifiCorp anticipates a robust response and a diversity of proposals.
© 2020 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.