Report: Gates enters joint energy venture

NEW YORK (CNNMoney.com) -- Bill Gates' investment vehicle Cascade Investment LLC is expected to announce a joint venture with utility and energy company PNM Resources Inc. on Friday, increasing its investment in the energy sector, according to a report published Friday.

Citing people close to the matter, The Wall Street Journal reported that the new company, which would equally split ownership between PNM and Cascade, would make investments in wholesale and retail electricity sales, electricity generation and some energy trading.

Microsoft founder Bill Gates

Amid a growing belief that the U.S. needs to develop new power plants, PNM could fill gaps in the energy production sector that have not been filled by larger players like Public Service Enterprise Group Inc. (Charts) and FPL Group Inc. (Charts), which have tried to tackle the problem through mergers but have been stymied by the state regulatory environment, according to the Journal.

The venture would not be the first time that Microsoft (Charts) founder Gates has invested in the energy sector. In April, Cascade acquired a 25.5 percent stake in Pacific Ethanol (Charts), a Fresno, Calif.-based outfit that distributes ethanol throughout California, Nevada, Arizona and Oregon.

Cascade currently has a 10 percent stake in PNM, which it acquired in 2001, according to the Journal.

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