1. The proposed Atlantic Coast Pipeline project has been scrapped after years of legal challenges and construction delays. Project developers, Dominion Energy and Duke Energy, announced the pipeline's cancellation earlier today, Sunday, July 5, 2020. From USA Today:
The project’s developers, Dominion Energy and Duke Energy, announced the pipeline’s cancellation in a joint statement on Sunday, citing “increasing legal uncertainty” — less than a month after the U.S. Supreme Court approved a critical permit that West Virginia Gov. Jim Justice celebrated as an “exciting” victory.
“This announcement reflects the increasing legal uncertainty that overhangs large-scale energy and industrial infrastructure development in the United States,” Dominion CEO Tom Farrell and Duke CEO Lynn Good said in the statement. “Until these issues are resolved, the ability to satisfy the country’s energy needs will be significantly challenged.”
The 600-mile natural gas project had faced opposition since its 2014 introduction from environmental advocates, landowners and activists who argued that the pipeline would scar pristine landscapes while also questioning its necessity.
The proposed $8 billion pipeline, which would have crossed under the Appalachian Trail and carried natural gas from West Virginia into North Carolina and Virginia, had been touted by supporters as a boost to economic development.2. Also from USA Today: Warren Buffett / Berkshire Hathaway adds to energy portfolio; buys Dominion Energy as lines in $10 billion deal.
The energy division of Warren Buffett's Berkshire Hathaway will acquire gas lines owned by the power company Dominion Energy in a nearly $10 billion deal, the two companies announced Sunday.
Dominion has sought to expand its pipelines along the Atlantic Coast for years to take advantage of the nation's fracking boom. However, after a number of regulatory hurdles, the Virginia-based company is abandoning those plans and ceding control of its natural gas and storage network to Berkshire Hathaway.
Dominion has more than 7 million energy customers across 20 states in the U.S. Berkshire Hathaway Energy provides service to 12 million customers around the world.
In addition to owning 100% of Dominion Energy Transmission, Berkshire Hathaway will also take a 25% stake in Cove Point, a natural gas facility in Maryland. Berkshire Hathaway will also own 50% of Iroquois, a natural gas system that serves the Northeast.
The $9.7 billion deal does not include acquisition of the proposed 600-mile Atlantic Coast Pipeline, a joint venture between Dominion and Duke Energy that would've stretched from West Virginia through Virginia and North Carolina.
3. Berkshire Hathaway is also interested in San Diego Gas and Electric; see Voice of San Diego, a couple of weeks ago.
SDG&E also responded to the city’s request, as expected since the franchise fee is the utility’s bread and butter. By law, SDG&E can’t make a profit on buying and selling energy, a business the utility has signaled it’d like to leave. Instead San Diego Community Power, the newly formed government-run utility in the region, will take that over for at least 40 percent of SDG&E’s customer base come 2021.
SDG&E is one of five business divisions under the Sempra Energy umbrella. It will be interesting to listen to Sempra's 2Q20 conference call.
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Berkshire Hathaway Energy
Years ago I wrote on the blog that if I ever quit blogging about the Bakken, I would start blogging about Berkshire Hathaway. LOL.
Talk about an interesting "company."
Berkshire Hathaway Energy website. At that website, links to each of the businesses within BHE. Most of these companies are within the US; two exceptions:
- AltaLink: Alberta, Canada
- Northern Powergrid: Yorkshire, England, and surrounding area
- it's easier to buy pipelines in the US than build them;
- better than dividends? "Rent."
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