Author Topic: Berkshire Hathaway Energy  (Read 15014 times)

Spekulatius

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Re: Berkshire Hathaway Energy
« Reply #50 on: November 09, 2019, 11:32:50 AM »
I am surprised that WEB isnít more interested in pipelines, since the FERC regulation is often more favorable than utility regulation. He did indeed buy some pipeline assets in 2001 or so post the IPP crash from Williams and I believe one from Dynegy (which bought it from Enron shortly before and then they got into trouble themselves). I believe he laid around 8x EBITDA for utility like assets, which was cheap. Now we have pretty decent pipeline companies valued at 10x EBITDA (maybe a bit less even) when interest rates are much much lower. Might be a time for them to at least start looking.
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Cigarbutt

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Re: Berkshire Hathaway Energy
« Reply #51 on: November 10, 2019, 04:56:00 AM »
I am surprised that WEB isnít more interested in pipelines, since the FERC regulation is often more favorable than utility regulation. He did indeed buy some pipeline assets in 2001 or so post the IPP crash from Williams and I believe one from Dynegy (which bought it from Enron shortly before and then they got into trouble themselves). I believe he laid around 8x EBITDA for utility like assets, which was cheap. Now we have pretty decent pipeline companies valued at 10x EBITDA (maybe a bit less even) when interest rates are much much lower. Might be a time for them to at least start looking.
I would say the interest is there and the finger may be on the trigger.

Just look at the stake in Phillips 66. It's an integrated and diversified company but pipelines are part of its core operations and, in 2014, which is yesterday in a way, Mr. Buffett (I don't think that one came from the lieutenants) bought the Philips Specialty Products unit from the parent. The now integrated chemical sub is not a pipeline asset per se but the move constitutes a significant vote of confidence for pipelines in general, an investment posture confirmed by public endorsement of key but controversial pipeline projects.

Also look at the ownership in Suncor Energy. Suncor is also diversified and integrated, and pipeline operations may not be the primary driver of future returns but a bet on Suncor is, in a way, a vote that the pipeline approval process will move forward, somehow.

Pipeline assets are very interesting but my investing style may prevent me from making easy money like you. :)

longinvestor

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Re: Berkshire Hathaway Energy
« Reply #52 on: February 16, 2020, 05:04:06 PM »
https://kiwaradio.com/local-news/midamerican-installs-electric-vehicle-fast-charging-station-at-sheldon-fareway-store/

MidAmerican has started installing fast charging stations across Iowa. Stated goal of a station every 50 miles. It is awesome on top of the 100% wind power. In the long run, as evs reach critical mass, this should help not needing to shut down turbines. This is all incremental load!

DooDiligence

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Re: Berkshire Hathaway Energy
« Reply #53 on: February 16, 2020, 06:00:25 PM »
https://kiwaradio.com/local-news/midamerican-installs-electric-vehicle-fast-charging-station-at-sheldon-fareway-store/

MidAmerican has started installing fast charging stations across Iowa. Stated goal of a station every 50 miles. It is awesome on top of the 100% wind power. In the long run, as evs reach critical mass, this should help not needing to shut down turbines. This is all incremental load!

I searched to find out how much it costs for a charge & couldn't find anything.

www.midamericanenergy.com/electric-vehicle-fast-charging-network

www.midamericanenergy.com/nr-electric-fast-charging-sites
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longinvestor

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Re: Berkshire Hathaway Energy
« Reply #54 on: February 16, 2020, 07:11:24 PM »
https://kiwaradio.com/local-news/midamerican-installs-electric-vehicle-fast-charging-station-at-sheldon-fareway-store/

MidAmerican has started installing fast charging stations across Iowa. Stated goal of a station every 50 miles. It is awesome on top of the 100% wind power. In the long run, as evs reach critical mass, this should help not needing to shut down turbines. This is all incremental load!

I searched to find out how much it costs for a charge & couldn't find anything.

www.midamericanenergy.com/electric-vehicle-fast-charging-network

www.midamericanenergy.com/nr-electric-fast-charging-sites

The model is for the business hosting the charging stations to set the price. MidAmerican will likely charge the host market rates for power. (my guess).

 So on the production side, they pay farmers/land lords a rent to host the turbines and the access road(I hear it is $20k/year). On the consumption side, it's the same model. There's built in incentives on both ends. And for MidAmerican all they are doing is to drive as much consumption of the energy produced as possible. It's all fixed cost.
« Last Edit: February 16, 2020, 07:23:25 PM by longinvestor »

longinvestor

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Re: Berkshire Hathaway Energy
« Reply #55 on: February 16, 2020, 07:57:39 PM »
https://youtu.be/l93S99rkDg4

Wonder if weíll see Berkshire Hathaway energy buy this concrete energy storage technology? From what I have gathered they have/are using molten salt and batteries in their Solar installations in the West.


CorpRaider

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Re: Berkshire Hathaway Energy
« Reply #56 on: May 16, 2020, 12:07:39 PM »
Has anyone ever asked them about fiber to the premises as being a potential growth area in the future for BHE (and utes as a whole).  It seems like this covid thing has really highlighted, for me at least, that high speed internet is basically an essential utility. 

Seems like as they build out "smart" grids with all the way fiber to the meters they could just tack on fiber service to the home for almost zero marginal cost.  Seems like utes already have the rights of way and cable management, equipment, workforce expertise, etc to dominate this segment.  Though I know I've seen some SE regional utilities who built this stuff out some in the internet bubble and then sold it off/took a loss, but maybe they were just very early.

scorpioncapital

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Re: Berkshire Hathaway Energy
« Reply #57 on: May 17, 2020, 03:38:19 AM »
Is it known yet if it's better to get your solar power from your utility using their high volume arrays or to build your own solar solution on your house , buy the hardware and never pay a monthly recurring utility bill again ? Which way is it going to go ?

rb

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Re: Berkshire Hathaway Energy
« Reply #58 on: May 17, 2020, 04:26:08 AM »
At this point you're not gonna be able to get the kind of stable, reliable energy in volume from your own setup like you get from your utility company. I think it's likely that you never will.

gfp

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Re: Berkshire Hathaway Energy
« Reply #59 on: May 17, 2020, 05:39:06 AM »
At this point you're not gonna be able to get the kind of stable, reliable energy in volume from your own setup like you get from your utility company. I think it's likely that you never will.

Yeah at this point the utility scale solar+battery installations are going to have huge cost/scale benefits.  It also greatly depends on how policies on net-metering evolve in the future.  Many utilities have already tightened the terms on net metering.  My local utility, Entergy New Orleans, gives us a ridiculously good arrangement - which doesn't seem good for them and I would be surprised if it lasts.  We have over 14kW of solar on our roof - enough to power our entire house including central air conditioning.  We do not have batteries.  We are able to sell our excess power back into the grid at the retail price.  This is such a bad deal for Entergy.  Basically we have the worlds most efficient battery.  For free.  And our utility, which shouldn't be in the business of buying power at their retail rate is doing just that.  We give them excess power all day long (especially in the summer) - then use the credits at night and in the winter months.  It results in just about net zero power bill, but we still pay them for a basic service hookup and our natural gas usage.