Conventional wisdom says that as fuel prices drop, so does market demand for alternative-fuel vehicles – such as those powered by compressed natural gas, propane autogas and plug-in electric systems. That’s because the lower the price of gasoline and diesel, the longer it takes to recoup the premium for alt-fuel technologies through fuel-cost savings.
Yet despite fuel prices in the low two-dollar range per gallon as of press time, a growing number of electric utilities in the U.S. are making substantial investments to green their fleets – specifically in plug-in electric vehicle (EV) systems.
A major driver of this trend has been Edison Electric Institute’s (EEI) Transportation Electrification Initiative, which in late 2014 garnered commitments from more than 70 investor-owned electric utilities to devote at least 5 percent of their annual fleet acquisition budgets to purchase plug-in EVs and equipment.
But for one of the nation’s largest electric utilities, Southern California Edison (SCE), the push for fleet electrification began nearly two decades ago, in 2000. And today, SCE (www.sce.com) operates 644 electrified units, comprising 11 percent of its total fleet. Last year, the utility invested 18.7 percent of its fleet spend in EVs, nearly quadruple the EEI annual target.
UFP recently spoke with Todd Carlson, principal manager for fleet asset management at SCE, to get more details about their fleet electrification initiative and uncover some of the lessons that Carlson and his team have learned in the process. Here are three takeaways that emerged from our conversation.