2007: Buffett discusses the Klamath River dams.

AUDIENCE MEMBER: Heya hamalio (PH). My name is Wendy George, and I am from the Hoopa Indian Reservation in northern California. I’m here with the Yurok and Karuk indigenous people who live along —

WARREN BUFFETT: I don’t know if the microphone isn’t working or not, but we want to make sure it is working.

AUDIENCE MEMBER: — who live along the Klamath River. My people are river people. Our entire culture, religion, and subsistence is centered around the river.

Your subsidiary company PacifiCorp owns dams on our river. Mr. Buffett, I know you care very much about humanity and ethical business. We also understand that you cannot exercise direct control over PacifiCorp’s operations.

However, there are things you can do to help us. So we are here to ask you if you would be willing to meet with the tribal representatives, learn more about our issues, and explore ways to help save our salmon?

WARREN BUFFETT: Are you complete? Just take your time here.

AUDIENCE MEMBER: Complete.

WARREN BUFFETT: OK. As I said earlier, we will not make the determination in the end. It will be made by FERC.

It’s the same way as if we’re going to put in a coal generation plant or a gas generation plant or more wind-powered.

For example, we put in a lot of wind power in Iowa, but that was decided, essentially, by the utility commission in Iowa, that they wished to make that decision.

And, incidentally, sometimes people are unhappy when we put in wind because they don’t want the transmission lines that are going to be involved.

They’re usually happy to give us the plots on which to put the wind turbines because they get paid very well for it, but they’re not happy to have the transmission lines.

Anytime you get into the public utility field, there are people happy and unhappy with decisions. Nobody wants a generating plant built near them, and that’s the nature of it.

The world does want electricity. And because it wants electricity, and it wants more electricity, it essentially has to decide the public policy issues through regulatory authorities.

And we will do exactly what FERC, finally — and with the consent of the state commissions — what they finally decide on it.

And all of the arguments will be presented to them. As I say, there are 27 groups, I believe. And then they go and then they get the opinion of the secretary of the interior and so on and a lot of other groups.

And somehow they come out with a decision on public policy, and we will follow it.

It takes a lot of time, too, I must say. Anytime you’ve got an issue that’s got 27 different views and more than one authority, it’s going to take significant time.

I’m in a peculiar position on this. Because when we bought PacifiCorp, we had to — Walter Scott and I both signed affidavits. As part of the acquisition of PacifiCorp, the Oregon Public Utility Commission required that we submit these affidavits.

And I’ll read to you from this. I don’t want you to think I’m ducking behind this, but this was executed several years ago.

And it says, “I agree I will not exercise any control, directly or indirectly, on matters that pertain to PacifiCorp, except for relating to PacifiCorp that are ministerial in nature.”

And then, “I agree, as a MidAmerican Holding Company and Berkshire Hathaway director, I will recuse myself from voting on MidAmerican Holding Corp. or Berkshire Hathaway board of director matters concerning PacifiCorp activities or operations.”

This is part of the order that came down that allowed MidAmerican to buy PacifiCorp.

I must say, too, that in terms of the Oregon Commission and the five other states, that our application went through in almost record time because MidAmerican does have such a good record in terms of being responsive to the public utility commissions under which it’s operated, and we will continue to be responsive.

WARREN BUFFETT: But I appreciate your point. Thank you.