Moments ago, Don sent me a link to a story in which, through a subsidiary, Berkshire Hathaway will be buying two California wind farms.
MidAmerican Energy has agreed to buy two wind projects under construction about 120 miles north of Los Angeles from the wind developer Terra-Gen Power. Terms of the sale were not disclosed.
The two projects, totaling 300 megawatts of peak electric capacity, will be part of the larger Alta Wind Energy Center located in Tehachapi, Calif., much of which is already in operation.300 megawatts: about 80,000 homes.
For me, the only interesting thing about the article is the fact that it reminds me how much I forget about Warren Buffett and Berkshire Hathaway.
According to wiki, MidAmerican Energy Holdings Company is a holding company controlled by Berskshire Hathaway.
In turn, MidAmerican Energy "holds" the following companies:
- MidAmerican Energy Company
- PacifiCorp
- Northern Power Grid (UK)
- Integrated Utility Services (UK)
- CalEnergy Generation
- Kern River Gas Transmission Company, Kern River Pipeline
- Northern Natural Gas Company
- HomeServices of America
MidAmerican announced a new division, a "renewables" division in January, 2012 -- earlier this year:
MidAmerican Energy Holdings advised that its new division, MidAmerican Renewables, had been established to expand the company’s presence in the wind, geothermal, solar and hydro projects for the renewables market. The new division will be based in Des Moines, Iowa and will consist of MidAmerican Wind, MidAmerican Geothermal, MidAmerican Solar, MidAmerican Hydro and project development and commercial management.There are multiple links to stories on the net of MidAmerican Renewables ramping up quickly in renewables.
For example: through MidAmerican, Warren Buffett is participating in building the world's largest solar project, announced May 3, 2012, from offices in Des Moines:
This week, MidAmerican Solar and First Solar, Inc., marked the start of major construction at Topaz Solar Farms, located in San Luis Obispo County, Calif. The 550-megawatt photovoltaic project will employ approximately 400 workers during its three-year construction period; will generate nearly $417 million in local economic impact, the majority of which will be generated during construction; and will provide California with renewable electricity.I never paid much attention to Berkshire Hathaway until it bought Burlington Northern Railroad just before the Bakken took off and unit trains became the "talk of the Bakken."
I have no idea where Microsoft, Google, or Apple will be fifty years from now, but something tells me Berkshire Hathaway will be around, and may be one of the largest energy companies in the world.
Disclaimer: this is not an investment site; make no investment decisions based on what you read at this site.
The old crony capitalist Warren Buffett is riding high in this environment of federal/state mandates and subsidies. It keeps the money flowing into Warren’s pocket from the consumer and taxpayer. This is more evidence of corruption, when big money and government get in bed together.
ReplyDeleteI get a real kick out of it, watching these bedfellows.
DeleteHe has learned to make money regardless of who is in the White House. Very impressive. I think that's true of all the great tycoons: they've learned to make money regardless of who is running the country.
I have an idea a cottage industry is growing that continues to study the ObamaCare health law very, very closely to find out where money can be made.
I lost a lot of respect for Mr Buffett when he said he paid less in taxes than his secretary paid (in percentage terms, no doubt). That told me his secretary is grossly underpaid.