2016 EDUCATION REPORT
Electric Utility Fleet Managers Conference (EUFMC)
EUFMC is an annual educational event for utility fleet professionals. The conference format includes sessions on topics related to fleet management, presentations of the latest fleet products and technologies, roundtable discussions on common challenges and solutions, and networking opportunities with industry peers and the manufacturer/vendor community.
In 2016, 128 fleet representatives from more than 70 investor-owned electric utilities, electric cooperatives and electrical contractors in the U.S and Canada, including 42 first time attendees, attended EUFMC. Joining them were 325 manufacturer and service provider representatives from almost 100 companies.
MONDAY JUNE 6, 2016
Suppliers attending the annual Electric Utility Fleet Managers Conference participate in a drive through equipment demonstration featuring more than 60 educational and technical presentations detailing the design features, specifications, capabilities and benefits of their latest technologies for electric utilities.
Technical details and other educational information pertaining to the design, procurement, application, operation and maintenance of equipment is also discussed at the annual EUFMC equipment showcase.
TUESDAY JUNE 7, 2016 & WEDNESDAY JUNE 8, 2016
Solutions for Managing a Progressive Fleet
The 2016 EUFMC educational program developed by the Board of Directors based on surveys and input from attendees was designed to address the informational needs of new and experienced fleet professionals. Featured were fleet executives, industry experts and supplier representatives.
Keynote Address
Disruptions in the Utility Industry
Eric Pike, Chairman and CEO, Pike Corporation
As keynote speaker, Eric Pike discussed economic, technology and customer related factors that are impacting the utility industry, and the challenges they pose for the future.
“Power consumption is a challenge for utilities because while there is customer growth, there is no load growth,” Pike said. “What we can do is focus on our core competencies and on adding not just customer value, but on adding what the customer values, and the distribution fleet is integral to that effort.”
Pike also addressed the growing use of alternative energy, noting that 784,000 homes and businesses in the U.S. are now powered by solar energy at a cost that is down 78% from 2009. In addition, 16.7 million homes are now powered by wind energy, a source that is expected to double to 10% of total electricity production by 2020.
Fleet Electrification
Kellen Schefter, Manager Sustainable Technology, Edison Electric Institute (EEI)
Providing an update of the EEI Fleet Electrification Initiative, Schefter related that the program involves a commitment by fleets to invest at least 5% of their total annual fleet acquisition budget in plug-in electric vehicles and technologies. Qualifying vehicles, he noted, displace petroleum fuel with grid-sourced electricity and infrastructure costs for charging stations that serve fleet vehicles (dedicated or shared) may count toward reaching the investment objective.
The 5% goal represents an estimated $50 million investment by potential fleet participants, Schefter explained. In 2015, he reported, fleets had already invested $90 million or 10% of their annual acquisition spending and to date in 2016 participants had committed $128 million or 13% of their budgets for plug-in electric vehicles, including autos and Class 1-8 trucks.
Participating fleets responding to an EEI survey also said they replaced 1.1 million gallons of petroleum fuel with electricity valued at $3.4 million. That’s 1.7 million total electric miles driven at a savings of $0.02 - $0.31 per mile and 617,000 idling hours eliminated, Schefter pointed out. “Our new goal,” he added, “is for 100% of EEI member companies to implement a PEV program by 2017.”
Paul Jefferson, Manager, OG&E
The OG&E company fleet, which now includes 1,974 assets, has 12 Chevrolet Volt and five Nissan Leaf autos, an E-PTO equipped bucket truck and a variety of electric UTVs and forklifts. In total, the utility has 16 Level 2 charging stations.
The OG&E E-PTO bucket truck provides on-demand hydraulic power for an insulated aerial unit and a tool circuit. The truck has a 13.6kWh, 58V lithium Ion battery, a 3600W inverter with a shore power charger, and a 190-amp alternator.
“We are developing electric vehicle programs for public and residential customers, as well as our own member employees and our fleet,” Jefferson said. “The challenges we have to face include addressing range anxiety, size and cargo space concerns, and having procedures to ensure that electric pool vehicles are turned off when they are not in use.”
Jordan Smith, Manager-Advanced Technology – Electric Drive Systems, Southern California Edison
The Southern California Edison Electric Drive Systems Group evaluates efficient vehicles, charging systems, and vocational equipment for the SCE fleet and for customers, and aims to provide solutions that are effective and reliable, minimize electrical system impact, and reduce life cycle cost. SCE also operates a facility at Pomona Labs that was established in 1993. The facility is used for vehicle and powertrain testing, charging infrastructure evaluation, standards and fleet support.
Smith also reported on details of a DOE PHEV Truck Project that began in 2009 at SCE. For the evaluation, SCE provides an Eaton F550, and a Via pick-up truck and passenger and cargo vans. The evaluation also includes an Odyne heavy-duty truck in collaboration with Duke Energy.
“The test plan,” Smith explained, “includes acceleration, braking, grade, charger and battery tests, as well as drive tests. The typical workday simulation of a troubleman loop covers 38.5 miles twice of freeway and city driving with four work stops of 75 min each in an 8-hour day. This is a realistic average that aids in complex system analysis.”
Limiting Liability
James B. Hood, Partner, The Hood Law Firm
Noting that in 2014 there were 900 recalls of 51 million vehicles by NHTSA, Hood said fleets need to be proactive, maintain clear records of equipment on hand, and implement and enforce policies for regular review of possible recalls and safety bulletins. “Enforce those policies,” he stated. “An unenforced policy is worse than no policy at all.”
When a fleet receives a notice of a recall or a safety bulletin, Hood advised, email the notice up the chain and have a meeting to discuss options and recommend to management a course of action. Based on costs, evaluate the pros and cons of repairing the unit or retiring it with an offer to make the repair. Always warn buyers and provide safety bulletins.
“Recalls affect use because a vehicle may be out of service for months or even years and loss of use means loss of revenue,” Hood stated. “Be aware that in a lawsuit, any action taken will be second guessed. What not to do is ignore problems or fix equipment the easy way.”
Safety
Tony Crow, Founder, INJAM-It’s Not Just About Me
Delivering a message of safety because he believes that leadership is best shown by example, Tony Crow related how he was blinded for life in a hunting accident because he didn’t follow the same simple safety rules he had learned in safety meetings while working at TXU for over 20 years.
“Accidents change lives forever,” Crow said. “At work I attended numerous safety meetings. I heard and knew the list of safety rules. They were so ingrained in me that I instinctively followed them. They became second nature. On and off the job it is important it is to practice safety 24/7.”
Data Driven Progress Benchmarking Panel
Moderator: Chris Shaffer, Partner, Utilimarc
John Adkisson, Fleet Manager, PPL Electric Utilities
PPL Electric Utilities operates 1,200 vehicles and 600 pieces of equipment and employs 50 mechanics, five administrative and support personnel, four supervisors and one fleet manager.
”At PPL Electric Utilities,” Adkisson said, “we use data integration to benchmark staffing, fuel use, and analyze work orders by technician. For the future, benchmarking will employ telematics and consistent use of industry-wide KPIs.”
Todd Carlson, Principal Manager-Fleet Asset Management, Southern California Edison (SCE)
Benchmarking activities at SCE, Carlson reported, cover numerous items and cost areas. Included was an analysis of the fleet’s average age that led to a ten-year replacement plan. “We’re benchmarking to address vehicle ownership costs and doing a deep dive into financials by looking at things like Purchase Price vs. Annual Operating Costs, Lease Term vs. Depreciation Schedule and Lease Buy-Outs & Timing,” he related.
SCE also addressed support costs by benchmarking. For example, Carlson noted that in 2012 the fleet had 333 full-time employees (FTEs) and through attrition and by restructuring and reallocating personnel, by 2016 had reduced that number by 32%, to 227 FTEs.
“Our recommendation is to definitely benchmark,” Carlson stated. “Focus on opportunities to learn what the data says, drill down and check specifics with your suppliers and peers. Finally, develop proactive suggestions for users and begin formal initiatives.”
Joe Young, Fleet Supervisor, We Energies
We Energies has used benchmarking to improve vehicle and equipment utilization, Young reported. “We found that 13% of our fleet, or 350 vehicles and pieces of equipment, had less than 50% of the average miles or hours by vehicle class so those underutilized assets were taken out of service,” he explained further. “The savings are in improved use of capital and reduced depreciation costs, and lower costs for fuel, permitting and licensing, and parts and labor.
“The challenges associated with that exercise are to eliminate equipment without adversely impacting safety, operations or customer service,” Young added. “That can be accomplished by renting low use and seasonal assets and by sharing equipment. There is also the need to educate end users on the benefits of optimizing utilization and to continue monitoring underutilized equipment after the initial reduction.”
Regulatory and Legislative Update
Washington Update
Pat O’Connor (Kent & O’Connor, Inc.), Legislative Counsel, NAFA Fleet Management Association
Citing a KPMG survey of 800 auto executives about how much legislation and regulation will influence the development of the industry, O’Connor reported these results:
· Very High Influence 29%
· High Influence 51%
· Average Influence 17%
· Low or No Influence 2%
The percentage of survey respondents rating each of the following trends as extremely important was:
· Connectivity and digitalization 50%
· Hybrid electric vehicles 50%
· Battery electric vehicles 47%
· Fuel-cell electric vehicles 45%
· Customer data/big data 42%
The FAST Act (Fixing America’s Surface Transportation Act) provides $305 billion for five years of transportation funding. The Act authorizes grants to states for pilots and for DOT to designate national charging and AGV fueling corridors. DOT will also determine best practices for expeditious state approval of permits for emergency response vehicles.
Vehicle Miles Traveled (VMT) or a Mileage Based User Fee is an alternative way to finance the construction and maintenance of roads. Rather than the current gas tax method, which is based on the amount of fuel purchased at the pump, a VMT tax is based on how many miles are driven.
A VMT is being considered because the federal government’s main source of funds for highways— gasoline tax revenues dedicated to the Highway Trust Fund— has been insufficient to pay for federal spending on highways. Since 2008, lawmakers have transferred about $143 billion from other sources to maintain a positive balance in the trust fund.
Adjusted for changes in construction costs, total federal spending on highways buys less now than at any time since the early 1990s. Federal spending on highways totaled $46 billion in 2014, roughly a quarter of total public spending on highways. About 95% of that amount was spent for the construction of highways or for their improvement, expansion and major repair, and the remainder was spent for operation and maintenance.
The outlook for a VMT has 11 states taking the lead:
· Oregon – Road Usage Charge
· California – Road Charge Pilot Program
· Western Road Usage Charge Consortium (WRUCC)
· Illinois Road Improvement and Driver Enhancement Act (SB 3267)
· Minnesota Pilot Program 2011-2012
· Indiana and Washington have passed legislation
A Congressional Budget Office report on APPROACHES TO MAKE FEDERAL HIGHWAY SPENDING MORE PRODUCTIVE issued in February 2016 says that most highway users currently pay much less than the full external cost of their travel. Most of the costs of using a highway, including pavement damage,
congestion, accidents, and noise, are tied more closely to the number of
miles traveled than to the amount of fuel consumed.
Therefore, fuel taxes do not provide a strong incentive for people to avoid overusing highways, that is, to forgo trips for which the costs to themselves and others exceed the benefits. VMT charges that varied for different types of passenger and freight vehicles and by time and place of travel would better align with the costs imposed by driving.
For Connected Vehicle programs, NHTSA is to begin taking steps to enable vehicle-to-vehicle (V2V) communication technology for light vehicles. That allows vehicles to "talk" to each other and ultimately avoid crashes altogether by exchanging basic safety data, such as speed and position.
Emergency Braking -- In March 2016, NHTSA and the Insurance Institute for Highway Safety announced a commitment by 20 automakers representing
more than 99% of the U.S. auto market to make automatic emergency braking (AEB) a standard feature on virtually all new cars no later than NHTSA’s 2022 reporting year, which begins September 1, 2022.
AEB systems help prevent crashes or reduce their severity by applying the brakes for the driver. The systems use on-vehicle sensors such as radar, cameras or lasers to detect an imminent crash, warn the driver and apply the brakes if the driver does not take sufficient action quickly enough.
Autonomous Vehicles-- NHTSA is holding public meetings to gather input as it develops guidelines for the safe deployment of automated safety technology.
In a March 2016 hearing of the Senate Committee on Commerce, Science, and Transportation, Congressional leaders asked a lot of questions about retrofitting the existing fleet for autonomous use.
Committee members and industry leaders clashed on the issue of mandatory privacy restrictions for personal data streaming from self driving cars. Industry representatives dodged questions about whether they would support a privacy mandate.
On March 16, 2016, the FBI and NHTSA issued a bulletin stating that motor vehicles are becoming “increasingly vulnerable” to hacking. The vulnerabilities are found in motor vehicles that contain an increasing number of computers in the form of electronic control units (ECUs) to control numerous vehicle functions from steering, braking, and acceleration, to the lights and windshield wipers.