Subject: Re: Berkshire's decline
This is why we have Buffett and Able saying the electric companies cannot be an insurer of last resort. In determining rates, Public utility commissions do not take the assessed replacement value of real estate into account at all.

The original thesis in this investment was Berkshire would have the ability to invest massive amount of capital for reasonable returns set by the PUCs. But that hasn’t borne out either due to lack of appetite from governments to resolve energy issues. Berkshire even had a solution to Texas’ power grid problem, but was met with “no thanks”.