The American multinational holding company Berkshire Hathaway has a plan to prevent the next energy crisis in Texas, Business Insider writes. The conglomerate of famous investor Warren Buffett wants to create a company called Texas Emergency Power Reserve. The idea comes after the winter storms in Texas in February and after the damage to dozens of power plants.
About 4 million people were left in the dark last month. There was also a shortage of food and drinking water and more than 100 deaths.
Berkshire will invest $ 8.3 billion in electricity generation, Dallas Morning News reports. The idea is to build 10 power plants in the state by November 2023.
Buffett and his team plan to recoup their initial investment and earn a 9.3% annual return, according to Dallas Morning News. Berkshire’s desire to secure a return is not surprising. When Berkshire rescued Goldman Sachs in 2008 and Bank of America in 2011, Buffett demanded shares with solid dividends.
In February, after temperatures in Texas dropped to a 30-year low, reaching 18 degrees Celsius, many currents received high bills for it. Social networks with huge bills for electricity appeared on social networks, and some of them reached up to 17,000 US dollars. This energy price has risen to $ 9,000 per megawatt for about five days – or 180 times above average, following a decision by the Tekacac Utilities Commission.
The largest American state will be separated from the rest of the country and the market, to a large degree, and will be strong. Because of this, consumers have a great choice among different suppliers.
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