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NEWS RELEASE                                                                                        OCTOBER 2016

Berkshire Hathaway Energy Will Spend $100 Million For Monitoring and Automation 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 $100 million per year on average for monitoring and automation 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 monitoring purchases of as much as $41 million annually from small generators from whom it is buying electricity or with whom it is collaborating. A large automation program associated with NOx reduction is under consideration for four coal-fired units.  In general, BHE is emphasizing improved efficiency while lowering emissions and expects to use smart sensors and neural networks.

The connection involves EPCs and consultants each of whom are specifying or buying monitors and controls 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 sales will be widespread.

Monitoring and Automation Market Potential with Berkshire Hathaway Energy

(annual market over next five years)

Application

U.S. Controls and

Automation Total
$ Million

Direct BHE

Market 

$ Million

Indirect

Market

$ Millions

7% of the U.S. gas transmission, and storage with 71 compressor stations and more in planning.  400 28  
41 coal-fired units with environmental upgrades and retirements.  300 21  
125 gas turbines and more in planning. 400 30  
190 wind turbines including those providing electricity to BHE. More than 3000 MW of additional turbines in planning. 100 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. 30 1 2
40 methane fueled generators at land fill and other sources in served states. 20 0 2
111 solar plants n served states and more being planned by BHE renewable as IPP. 20 0 3
Energy recovery at compressor stations and Currant Creek (tomato production) with more planned. 40 3 2
130 large industrial boilers in served states. 200   20
Total   100 41

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 sensors.

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