Berkshire Names Caudill NV Energy President After Buyout

Dec 19, 2013 5:13 pm ET

(Updates with funding sources in fifth paragraph.)

Dec. 19 (Bloomberg) -- Berkshire Hathaway Inc.’s MidAmerican Energy Holdings Co. named Paul Caudill president of NV Energy after completing its purchase of the Nevada utility whose chief executive officer will step down next year.

Caudill, who had been president of MidAmerican Solar, will work with NV Energy CEO Michael Yackira, who plans to retire in June from the Las Vegas-based provider of electricity and natural gas, the companies said today in a statement. NV’s solar projects include facilities near Primm, Nevada and in North Las Vegas.

Caudill’s “leadership experience means he’s the right choice to help us ensure continued safe, reliable energy for Nevada customers, while helping us explore and invest in greater renewable energy-generation options,” Yackira said in the statement.

MidAmerican agreed in May to buy NV Energy for about $5.6 billion in cash to expand in Nevada. Berkshire CEO Warren Buffett, 83, has been boosting investments in capital-intensive businesses as he seeks to allocate funds at his Omaha, Nebraska- based company.

The energy unit issued $1 billion of common equity to its existing shareholders and $2.59 billion of junior subordinated debt to Berkshire subsidiaries to help fund the deal, according to a filing today from Des Moines, Iowa-based MidAmerican. It also used proceeds from senior debt issued in November.

Berkshire owned 89.8 percent of MidAmerican as of Jan. 31, according to a regulatory filing, with Berkshire director Walter Scott and his family owning most of the rest.

--Editors: Dan Kraut, Peter Eichenbaum