(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.