(BRK.A), (BRK.B)
Berkshire Hathaway’s Rocky Mountain Power will add approximately 1,100 megawatts of new wind generation as part of its planned new 140-mile Gateway West transmission segment. Most of the new investments will be in Wyoming.
“These investments will provide significant long-term benefits to our customers and bring substantial economic benefits to rural communities where the facilities will be located,” said Cindy A. Crane, Rocky Mountain Power President and CEO.
The company first announced the wind and transmission investments in April as part of its broader long-term energy plan. Additional filings and regulatory approvals will be needed for the projects to be built and serving customers by 2020 as planned.
The Energy Vision 2020 projects were chosen by the company as the most cost-effective option to meet customers’ energy needs over the next 20 years. By moving to complete the projects by 2020, the company will be able to use federal production tax credits to provide a net cost savings to customers over the life of the projects.
In making the wind and transmission investments, the project will also create between 1,100 and 1,600 construction jobs in Wyoming, and add approximately $120 million in tax revenue from construction.
The post-construction annual tax revenues will start at approximately $11 million in 2021 and growing to $14 million annually by 2024.
Rocky Mountain Power is also planning to add solar power generation, as well.
© 2017 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.