My Question to Greg Abel: What About the Future?

By Kansas Lohmeier

Like most people born and raised in Nebraska, I grew up knowing Warren Buffett as the “Oracle of Omaha.” A widely-successful investor, businessman, and engaging CEO to a massive corporation. Given his reputation, I was excited to have the opportunity to attend my first Berkshire Hathaway Shareholders Meeting this year. As a junior at Elkhorn South, a high school in West Omaha, I am dreaming about college and what the future holds. How my question was answered at the shareholders meeting gave me some insight.

Most people don’t realize that Berkshire Hathaway Energy is one of the biggest subsidiaries in the Berkshire Hathaway portfolio or that it’s the second largest utility provider in the United States. BH Energy runs Rocky Mountain Power in Utah and Wyoming; NV Energy in Nevada; Pacific Power in Oregon, Washington, and California; and, on the other side of the Missouri, MidAmerican Energy in Iowa.

What even fewer may know is that a Reuters investigation found that BH Energy operates the dirtiest fleet of coal plants in the nation, releasing more nitrogen oxides than any other fleet in the United States and ranked 4th in most carbon-emitting companies throughout all industries. Coal burning is the most-polluting source of energy, releasing noxious gases that widely impact health and the atmosphere. Unfortunately, Berkshire Hathaway and its subsidiaries have no concrete plans to retire the vast majority of their fossil fuel plants. 

As a teenager, this worries me. I am deeply concerned about climate change and the effects it will have on my future: extreme weather, loss of biodiversity, health consequences, and more. Knowing Buffet’s reputation for avoiding unethical investments, I decided to inquire about it. I asked what Greg Abel, CEO of BH Energy and Warren Buffett’s successor, had to say to young people like me who are afraid to grow up in a world of increasing climate volatility.

Abel’s response was respectful, but avoidant. He brought up MidAmerican’s investments in wind energy and a few previously retired coal plants, but failed to mention retirement plans for Berkshire’s active plants in Iowa, Utah, and Wyoming that are planning to operate until 2049 or, in some cases, indefinitely. While Berkshire’s clean energy backing is commendable, the truth remains clear: a regrettable amount of its energy comes from burning coal. As of 2023, a shocking 21.96% of Iowa’s total energy is from coal - a considerable amount of which stems from Berkshire’s plants. 

And contamination from these plants isn’t restricted to Iowa! Much of the pollution crosses over the river into Omaha and the surrounding areas. The same Reuters investigation revealed that the nitrogen oxides released are estimated to cause around 7 premature deaths a year and approximately 100 million dollars in health care costs within the Omaha metropolitan area alone. Last year, Omaha ranked among the worst third of cities in the U.S. for air quality! Considering there’s another 24 years until their closure, these plants will cause an estimated 168 deaths in Omaha, but that’s only a fraction of the damage. Cities like Ottumwa and Sioux City, where coal plants are located, have it worse. 

When I think of Warren Buffett and his empire, I want to picture a company renowned for smart, ethical investments, a company that puts the health and future of its customers first. Right now, instead of envisioning Squishmallows, Dilly Bars, and real estate, all I see are smokestacks, asthma rates worsening, and a future full of regret for not having done something sooner. Berkshire Hathaway needs to eliminate its fossil fuel fleet as quickly as possible. 

By 2050, it is predicted that global temperatures will have risen by about 2 degrees celsius (3.6 degrees Fahrenheit). We are already experiencing extreme droughts, floods, and derechos throughout the Midwest. If we continue on this current path, weather events will be more extreme, species extinction will rapidly accelerate, and worse. By 2049, I fear it will be too late.