I have a certain amount of comfort — a relatively high amount — with the idea of Warren Buffett owning one of the local power companies. (An enterprise he controls announced plans today to buy PacifiCorp from its Scottish owners for $5.1 billion in cash and the assumption of $4.3 billion in debt and preferred stock.)
I would not like to suggest a quid pro quo (and in any case Mr. Buffett’s home currency is not the quid but the buck), but someone at the City of Portland should be brave enough to ask him whether he would consider buying some bonds to finance the public purchase of Portland General Electric, say, about $2 billion or so, on reasonable terms. Mr. Buffett said last month, at the annual meeting of Berkshire Hathaway, that he had $45 billion in cash looking for a home, and if he’s interested in electric utilities the City could strike a deal to borrow the funds to buy Portland General. Given Mr. Buffett’s legendary track record as an investor, the City should also offer to let him name half of the directors. And next, hire him to run PERS.