Author Topic: Berkshire Hathaway Energy  (Read 16710 times)

kab60

  • Hero Member
  • *****
  • Posts: 1288
Re: Berkshire Hathaway Energy
« Reply #60 on: May 17, 2020, 10:07:21 AM »
gfp, that was the way it used to work in Denmark as well. Fantastic deal (espescially since 80 pct of retail price here is taxes). So enjoy it while it lasts. :)


plato1976

  • Hero Member
  • *****
  • Posts: 685
Re: Berkshire Hathaway Energy
« Reply #61 on: May 17, 2020, 11:07:35 AM »
I can see more and more residential and companies are shifting to install solar panels to supply electricity for themselves. Many of them gain "energy independence"
Won't this impact traditional utility business ?
Not sure if there is a quantification of this impact

longinvestor

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1886
  • Never interrupt compounding unnecessarily -Munger
Re: Berkshire Hathaway Energy
« Reply #62 on: August 01, 2020, 07:19:13 AM »
https://www.ferc.gov/news-events/news/ferc-modernizes-purpa-rules-ensure-compliance-reflect-todays-markets

PURPA, the 1978 deregulation of Utilities is the reason Walter Scott invested In MidAmerican. And Buffett bought into it in 1999. PURPA’s intent was to bring in market forces in place of monopolies. But as with all regs, there’re loopholes and much gaming has gone on. https://www.jdsupra.com/legalnews/ferc-revisions-to-purpa-rules-create-35558/ describes the gaming.

BHE is playing nice in eyes of regulators, mainly by holding ratepayer rates in check relative to peers.

An interesting tidbit I picked up is that private power (approx 40 entities) accounts for 72% of energy. Much consolidation to come. The rest comes from the balkanized coops, state power etc. The lowest cost producer stands to win. It may take 100 years but BHE will be there.
« Last Edit: August 01, 2020, 07:48:05 AM by longinvestor »