Warren Buffett owns an energy company called Berkshire Hathaway Energy, has beliefs such as good customer service, environmental respect, operational excellence, employee commitment, regulatory integrity, and financial strength all matter.
Buffett acquired Oncor Electric Delivery Company LLC in 2017, with an equity value of $11.25 billion. Oncor’s parent, Energy Future Holdings Corp (EFH), had cost $9 billion in cash. Buffett had bet that he could win approval of the acquisition from Texas regulators. In 2013, Buffett had lost $873 million on a $2 billion investment bond with EFH. Allen Nye is Oncor’s new CEO. Berkshire Hathaway Energy Co. believes in empowering clients to manage their own energy use.
Buffett believes that investing in Texas is investing in “big.” Buffett made a big investment in Hathaway Energy Co., which serves at least 4.7 million customers across 11 states with both electricity and natural gas. Buffett has the opinion that utilities and their earnings are “recession resistant”, says the “Oracle of Omaha”. An electrical grid must operate efficiently in order to be something an investor can make a profit from. Energy companies are facing the growth of energy efficiency regulations since customers can do their own monitoring. Critics of Berkshire Hathaway say that the company is inconsistent with their approach to clean energy.
This is because Berkshire Hathaway Energy engages in wind, solar, hydro, and geothermal power, which is developed by states like Hawaii, California, Texas, Arizona, Kansas, Nebraska, Minnesota, Illinois, and New York. There is a disconnect between Buffett’s vision for climate change and Berkshire Hathaway’s ideas on clean energy. Californian’s need not pay for Hathaway’s energy projects in other states. For example, if there is clean geothermal energy in the Imperial Valley, what if renewables were to be shut down and coal brought in since wind power is popular with 1,000 miles of transmission lines in Wyoming and Idaho.