At a shareholders meeting this week, Berkshire Hathaway executives defended the firms’ plans to invest billions in Texas’ natural gas industry.

Reported by Reuters:

Berkshire in March proposed building 10 natural gas-powered plants that would supplement the capacity of the Electric Reliability Council of Texas (ERCOT), which provides electricity to most of the state, and provide backup power in emergencies.

But the proposal reportedly contemplates guaranteed payments to Berkshire, upsetting the deregulated pricing model for Texas’ power market.

The Dallas Morning News said Berkshire is proposing a guaranteed 9.3% rate of return. Berkshire has declined to comment.

Starwood Energy Group, the investment firm, last month proposed its own competing $8 billion plan to build 11 natural gas pants in Texas. read more