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Warren Buffetts MidAmerican Energy buys utility NV Energy

High voltage transmission lines, Primm Valley, Nevada (source: flickr/ Stephen Hill, creative commons)
Alexander Richter 30 May 2013

Warren Buffett's MidAmerican Energy buys Nevada-based utility NV Energy for $5.6 billion, further strengthening its renewable energy portfolio due to the renewable energy potential for solar, wind and geothermal in Nevada.

MidAmerican Energy, owned by Warren Buffet’s Berkshire Hathaway, reports it will buy electric utility and natural gas company NV Energy Inc. for $5.6 billion.

MidAmerican was recently in the news regarding its geothermal assets held via CalEnergy together with TransAlta.

This is – so the news – one of the biggest deals for MidAmerica, a company that has been heavily investing into renewable energy projects in the past couple years.

NV Energy is the largest utility in the state of Nevada and a buyer of most of the power generated from renewable energy power generation plants in the state, among them geothermal. NV Energy is serving customers in the state through its companies Nevada Power Co. and Sierra Pacific Power Co. In the past the financial situation around NV Energy was considered not being as strong, so this deal clearly strengthen’s the company and the electricity market and effectively renewable energy development in the state.

“Both companies’ boards have approved the sale and they expect it to close in the first quarter of 2014, subject to approval by regulators and NV Energy shareholders.”, so the companies in a statement.

It is so far unclear how this deal will effect the energy market and new development in the state, but it can be assumed this only strengthen’s the market.

Source: Global Post