2007: What is Buffett's position on removing the outdated Klamath dams?
AUDIENCE MEMBER: Yes. Thank you, gentlemen, for this opportunity to ask you a question. My name is Ronnie Pellagreen (PH), and this is my 14-year-old daughter, Mikayla (PH).
We are here representing hundreds of ocean, commercial, hook-and-line salmon fishermen, and their families from the West Coast. They are barely hanging on to their livelihoods because of the Klamath River crisis.
My husband is a fourth-generation hook-and-line commercial fisherman from Eureka, California. His family has fished for the last 100 years.
Last year, our commercial salmon season was completely shut down because of the crisis in the Klamath River. It is caused by the four lower hydroelectric dams owned by your subsidiary PacifiCorp.
We personally took a 95 percent hit in our income — excuse me — and we had no way to make up that loss. We have used our savings and were forced to take out a Small Business Administration disaster loan to meet our financial needs.
Our daughters were so upset after overhearing my husband and I last Christmas, they came to us wanting to give us all the money in their bank accounts.
I am telling you this, gentlemen and shareholders, because you and the shareholders can help.
Under Klamath Dam relicensing, it is shown that this dam removal makes economic sense for PacifiCorp and MidAmerican.
You are a great businessman who has built an incredible empire. We sure could use your creativity and expertise in solving this crisis situation so the Indian people along the river, and we, in the coastal communities, can continue our long and proud heritage.
People back home are eagerly waiting for me to bring a response back from you.
My question is, what can I tell them is your position on removing the outdated Klamath dams?
WARREN BUFFETT: Yes. Our position on it is quite simple.
The FERC and several of the regulatory commissions have before them 27 different proposals or positions by various interest groups.
Some want — some like hydropower, which is what comes from the dams, because it does not generate the emissions that come from coal or gas-fired generation.
Some like the fact that hydropower is cheaper, several hundred thousand consumers. Some people have been hurt by what you describe in terms of the fish.
And you have a public policy question which will not be determined by PacifiCorp. It will be determined by FERC because they are — they represent the public. In fact, the secretary of Interior has advised FERC that it’s a very tough question.
FERC will be having hearings. They will listen to the positions. The Oregon and Utah, California, perhaps, public utility commissions will be listening to the arguments.
And, in the end, we are a public utility responding to public policy. Public policy, weighing both your interests and the interests of others in the matter, will come to a determination, and PacifiCorp will do exactly what they say.
We are responsive to the people that regulate us, just as people have been in that position since the first dam was put in in 1906. So that is entirely a question for FERC and the state commissions.