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NEWS RELEASE                                                                                        OCTOBER 2016

Berkshire Hathaway Energy Will Spend $62 Million for Pumps Next Year

Berkshire Hathaway has acquired and merged a number of power and gas transmission companies. It has also created BHE Renewables.  The group now known as Berkshire Hathaway Energy (BHE) will spend $62 million on average for pumps over the next five years.  Because of its distributed generation and certain other activities in the areas where it supplies electricity, it will indirectly influence pump purchases of as much as $42 million annually from small generators from whom it is buying electricity or with whom it is collaborating. The connection involves EPCs and consultants each of whom are specifying or buying pumps for multiple utilities. So, the market potential is much larger than just what BHE buys.  Also, if the system results in successful early adoption of new technologies, the impact on pump sales will be widespread.

Pump Market Potential with Berkshire Hathaway Energy

(annual market over next 5 years)

Application

U.S. Pump Total

$ Million

Direct BHE Market

$ Million

Indirect Market

$ Million

7% of the U.S. gas transmission and storage with 71 compressor stations and more in planning. 300 21  
41 coal-fired units with environmental upgrades and retirements. 100 10  
125 gas turbines and more in planning 100 8  
190 wind turbines including those providing electricity to BHE. More than 3000 MW of additional turbines in planning.  20 2  
111 geothermal plants in served states. 100 7 4
21 hydro plants with environmental upgrades and expansion into Philippines.  90 8 8
45 biomass plants in served states.  40 1 3
40 methane fueled generators at land fill and other sources in served states.  20 0 2
111 solar plants in served states and more being planned by BHE renewable as IPP. 20 0 4
Energy recovery at compressor stations and Currant Creek (tomato production) with more planned.  40 5 11
130 large industrial boilers in served states.  200   20
Total   62 42 

McIlvaine is providing a system for suppliers to connect with utilities so that the process of decision making can be quicker, less costly, and result in early adoption of newer and better technologies such as smarter pumps.

Details on the program are shown at: 4S01 Berkshire Hathaway Energy Supplier and Utility Connect