Berkshire reported some promising news on their electric utility businesses, but sadly I still have to conclude that it's not a good business. In response to a question from the audience, Greg noted that since Berkshire Hathaway purchased MidAmerican in 2020, that Berkshire has converted five of the ten coal plants in Iowa to natural gas, but said that they will not convert the other five soon. (They are scheduled to be replaced by 2049.) Greg said that Berkshire does not determine the mix of plants in the state, but rather that it is set by the governor, the legislature and the regulators, who apparently want to keep rates low. Gas is now cheaper than coal, but the conversion costs money. I find this decision disappointing. On the plus side, Greg noted that MidAmerican did spend $11B (iirc) on a large wind farm in Iowa.

In response to another question, Warren stated that buying PacfiCorp was a mistake, or at least that leaving it organized as a multi-state corporation was a mistake. Warren said that Berkshire should not run a money losing company, and Greg said that Berkshire could not be insurer of last resort, but neither Warren nor Greg suggested any plans to divest PacifiCorp. Greg said that there will be more wildfires, and essentially admitted that three of the four wildfires in 2020 were ignited by or worsened by PacifiCorp equipment. The primary plan now is to turn off the power more quickly in the event of fire. Some good news, not mentioned at the meeting, was that removal of the fourth of four dams on the Klamath River was completed on Q1.

Electric power production is an essential business, and with 11% ROE (until there's a fire) it is, in Warren's words, a good but not great business. Sadly, it looks like we're stuck with it.