Fleet Profiles

In recent months, Ford and GM have unveiled their concept models with plans to build an all-electric full-size pickup truck beginning next year.

But there’s one OEM with actual electric truck production models on the roads right now.

It’s Rivian (https://rivian.com), an Irvine, California-based startup that raised $10.5 billion and recently filed to go public.

And the company’s first R1T electric pickup truck, offering a range of about 300 miles, rolled off the assembly line in Normal, Illinois, on September 14.

The price tag starting at $67,500 is a barrier to widespread fleet adoption. But the capabilities of this first-to-market electric truck offer a glimpse of what’s possible for utility fleet applications in the coming years.

All major automakers have recently announced their commitments to selling only electric-drive vehicles by 2035. And that shift will bring new opportunities and challenges for utility fleets.

It will force you to change how you spec vehicles, manage “fueling” infrastructure, train your technicians and support crews in storm response situations.

So, where do you start? How do you plan for such a large-scale change effort? What should you be thinking about today to set up your fleet for success in the next decade?

UFP recently spoke with Brent Johnson, principal and co-founder at Sage Energy Consulting Inc. (www.sagerenew.com), an energy planning and project management firm. He offered these six factors to keep in mind as you prepare your fleet for an all-electric future.

In May, Ford unveiled its all-electric F-150 Lightning pickup, joining GM, Tesla, Rivian and others racing to bring an affordable and practical battery-powered truck to the mainstream market.

The truck is expected to arrive in spring 2022 with four models and two battery options. Within three weeks of Ford’s announcement, the F-150 Lightning had surpassed 100,000 reservations (which can be made for $100 at www.ford.com/trucks/f150/f150-lightning/2022/).

So, what does this new entry in the electric truck race mean for utility fleets? Will it be practical for fleet applications? Here’s what we know about the F-150 Lightning so far.

What’s the price?
The Pro work truck model starts at $39,974 MSRP before any federal or state tax credits (or fleet incentives), while the mid-series XLT model starts at $52,974 MSRP.

In March 2020, longtime fleet professional and UFP editorial advisory board member Matt Gilliland was tasked to lead Nebraska Public Power District’s (NPPD) Infectious Disease Prevention and Control response team.

Gilliland’s team helped develop new COVID-19 policies and practices for the entire organization to reduce the risk and spread of infections and minimize operational disruptions from illness.

UFP recently spoke with Gilliland, NPPD’s director of operations support, to learn about some of the changes his response team recommended for the fleet department that employs 12 people and oversees about 1,200 total fleet assets. Specifically, we talked about the new fleet practices developed in the past year that he believes will likely continue beyond the pandemic.

A major bottleneck to large-scale fleet electrification is the electric pickup truck – because you can’t buy one right now.

That’s about to change.

Brands like Tesla Cybertruck, GMC Hummer, Rivian R1T and Ford F-150 are expected to launch a full-size all-electric pickup starting this fall to mid-2022.

But these models, at least initially, are being built with the high-end retail customer – not fleets – in mind.

So, does this mean fleets have a few more years to wait for a product that will be practical for work truck applications?

In late September, CenterPoint Energy announced that, by the end of this decade, the company will replace 100% of its light-duty fleet – currently 134 cars, vans and SUVs – with plug-in hybrid and all-electric vehicles at CenterPoint’s electric operations facilities in Evansville, Indiana, and Houston.

Officials also said the company would electrify 5% of its heavy-duty fleet at those locations by 2025 and 10% by 2030.

So, what has led CenterPoint’s electric operations to go all-in on fleet electrification? What fleet applications will make the transition first? And what does the company see as the business case for electrified vehicles?

UFP recently spoke with Barb Varanauski, director of fleet, shop services and radio communications for CenterPoint Energy, to get her perspective. Here is an edited excerpt of our conversation.

In early March, the coronavirus caused automakers to shut down production completely for two months. But even after reopening in late June, they’ve still had to deal with temporary plant closures as positive cases emerge.

As you can imagine, COVID-19 has wreaked havoc on vehicle and equipment production schedules and supply chains, causing significant delays that have put many utility fleets in a bind.

So, what exactly is the current state of order-to-delivery (OTD) time frames? What can you expect to see over the next several months? And how can you minimize any disruption to your fleet operations?

UFP spoke with Cindy Gomez, vice president of vehicle acquisitions services at Donlen (www.donlen.com), a fleet management company, to get her outlook on OTD time frames and advice on how you can handle the issue.

For utility fleets committed to electrification, the holy grail is to electrify pickup trucks.

That’s because pickups represent the largest vehicle segment for most fleets in the industry. So, if you can electrify a wide range of pickup applications, you’ll make a huge dent in your company’s sustainability efforts.

The challenge is that high battery costs and low range between charges have historically made the idea of all-electric pickups seem impractical for widespread fleet use. And there are no products commercially available for fleets to choose from.

But that could be changing soon. Here’s an overview of six electric pickups currently in development that are expected to launch in the next one to two years.

A perfect storm of geopolitical forces flooding the world’s oil supply and COVID-19 causing global governments to temporarily shut down their economies has precipitated a steep drop in gasoline and diesel prices in recent weeks.

So, what does this mean for the electric vehicle market?

After all, conventional wisdom says that cheap gas will put the brakes on the demand for alternative fuels, including electricity.

But Karl Popham, manager of electric vehicles and emerging technologies at Austin Energy, a public power utility and a department of The City of Austin, Texas, believes that demand for electrified transportation likely will continue to grow despite oil prices at historic lows.

Why? Popham points to four trends.

In 2016, when Mariela Perez and her husband visited the exhibits while attending a national fleet managers conference, very few equipment vendors knew who she was: the head of the fleet department at Duke Energy, one of the largest electric utilities in the U.S.

So, you can imagine the awkward surprise for many of those exhibitors.

“My husband also works at Duke, as the general manager of distribution in Florida,” Perez said. “And since many of the attendees bring their spouses, and I wasn’t wearing a Duke shirt, [the vendors] assumed my husband was the fleet manager.”

Sales reps would look past Perez and approach her husband: “What can we do to earn your business?”

“My husband would say, ‘Talk to her,’ pointing to me,” Perez said. “‘Why would we want to talk to your spouse?’ He’s like, ‘Well, because she’s the general manager of the Duke Energy fleet.’”

Michele Davis has loved cars for as long as she can remember.

So, when her father bought her a 1968 Chevy Camaro for her 16th birthday, “I lost my mind,” she recalled. “I didn't expect anything like that. I mean, I just wanted a car to drive to school, go to work, see all my friends. But my dad said, ‘Well, I know how much you love cars, and I know you'll appreciate this more than your younger sister will when she turns 16.’”

Today, Davis still owns that Camaro. And she has become a successful leader in a career that taps into her lifelong passion for all things automotive. She’s the fleet manager at Washington Gas, a natural gas service provider headquartered in the District of Columbia, where she manages about 1,200 fleet assets and 30 employees.

But it took a long and winding road for Davis to discover that she could build a career around her favorite pastime.

In his classic bestseller, “Thriving on Chaos,” management expert Tom Peters put it best when he wrote, “Excellent firms don’t believe in excellence – only in constant improvement and constant change.”

Perhaps the same could be said about excellent fleets, where you never ultimately arrive at a destination called “excellence.” Instead, you remain on a journey of continuous improvement, making changes along the way to produce better results for your customers and the company.

This philosophy of constant improvement is what has driven Dale Collins, fleet services supervisor at Fairfax Water in Virginia, and his team to make significant changes with their new generation of crew trucks – to increase storage capacity, improve safety, boost productivity and reduce operational costs.

In 2006, when Holly Giffrow-Bos applied for the open fleet position at East Central Energy in Braham, Minnesota, she wasn’t exactly sure what she was getting into.

“Automotive is what I knew, but I really didn’t know what fleet was all about because it’s a completely different animal than the retail automotive business,” she said.

Giffrow-Bos knew the automotive business because she worked in dealerships for nearly two decades. She started in the accounting department at a small Ford dealership in Cambridge, Minnesota, after graduating high school. About a year later, she moved to Northern California, where she took a job at another Ford dealership, starting at the service department appointment desk.

“And then I just became a sponge,” Giffrow-Bos said. By the time she left that company in 2004, after about 14 years, she had worked her way up to fixed operations manager for the company’s two dealerships.

Today, Giffrow-Bos is the fleet supervisor at East Central Energy, overseeing about 200 fleet assets and four technicians.

What if you could convert the majority of your fleet to run on a cleaner-burning, renewable fuel with minimal capital investment. Would you do it?

According to NTEA’s 2019 Fleet Purchasing Outlook, a growing number of fleet professionals are saying they would, with survey participants naming biodiesel as their top alternative fuel choice – and their top choice for future interest.

Think of biodiesel as the low-hanging fruit for fleets to make a significant dent in their green initiatives without breaking the bank. That's because the fuel is relatively easy to get, and biodiesel blends up to B20 (20% biodiesel and 80% petrodiesel) can be used in most diesel engines without modification. Compared to petrodiesel, B20 reduces carbon emissions by 16% on average, according to the National Biodiesel Board. And you can use biodiesel in conjunction with your fleet electrification efforts, such as with hybrid-electric diesel trucks.

When it comes to fleet, senior leadership may not fully appreciate all that the job entails.

"What I would often hear from folks either in finance or in the senior leadership groups was something along the lines of, ‘Every year, fleet costs go up. But I have a 2004 Honda with 300,000 miles on it. It costs me 421 bucks a year to operate. How come you can't do the same thing?’” said Chris Lindquist, a 30-year fleet veteran from Colorado Springs Utilities and Xcel Energy, who retired in 2018.

Sound familiar?

“People think they understand fleet, but they really don't,” Lindquist said. “The reality is that most folks in the higher echelons of utility companies tend to view fleet strictly as an expense that's large and assume that their fleet must be underperforming because, well, the costs keep going up.”

If leadership doesn’t understand the value that your department brings to the overall business, your budget becomes a prime target for cuts.

“At the beginning of the year, that budget you fought for the previous year would be set in stone,” Lindquist said. “But in the spring, all of sudden there would be an edict that came from the budget officer or the finance department that basically said, ‘Budgets are X. We're going to have to start cutting from Y.’ Fleet was always one of those departments on the cut side of the budget.”

When it comes to service trucks in utility fleets, which is more popular: two-wheel-drive or four-wheel-drive?

According to a recent report by Utilimarc (https://utilimarc.com), a Minneapolis-based fleet management software and benchmarking company, the clear winner is the 4x4.

But this hasn't always been the case. In fact, in 2012 – just six years ago – the two-wheel-drive led the service truck market by nearly 20 percentage points.

That would appear to make sense. All things being equal, the two-wheel-drive comes with a lower price tag. And conventional wisdom is that operating costs on the 4x2 should be lower as well, because there are fewer components that need to be serviced or repaired.

Yet in a relatively short span, the 4x4 has surged to the lead. Why? What’s driving this change in utility fleets?

UFP spoke with Paul Milner, senior analyst and product developer at Utilimarc, to help us dig into the data.

In recent years, the pickup truck market has been considered by many in the utility industry as the “holy grail” for fleet electrification.

That’s because pickups comprise the most significant percentage of many utility fleets. So, the more of those trucks you can switch to plug-in electric powertrains – whether all-electric or hybrid – the greater the impact you can make in reducing greenhouse gas emissions.

But the challenge with electrifying pickup trucks has been cost, making it difficult for utility fleets to come up with a compelling business case to invest aggressively in the technology.

That is, until recently. As battery prices continue to plummet and the business case becomes more attractive, some utility fleets are taking a more aggressive stance with their fleet electrification efforts.

Take, for example, San Antonio-based CPS Energy, the nation’s largest municipally owned natural gas and electric company.

In April, CPS Energy announced the purchase of 34 plug-in hybrid electric Ford F-150 pickup trucks, which, according to XL (www.xlfleet.com) – a provider of connected vehicle electrification systems for commercial and municipal fleets – represents the largest purchase of plug-in hybrid F-150s by any utility or private company to date and the first in Texas to use the vehicles.

In 2015, Chicago-based Commonwealth Edison Co. (ComEd) became the first utility to be approved by the Federal Aviation Administration for operational use of unmanned aircraft systems – also referred to as UAS or drones – under certain conditions for line inspection and emergency response applications.

So, three years and 250 flights later, how has it been going? Where does ComEd’s program stand today? What types of applications are they using drones for? And what are some of the lessons the utility has learned?

UFP recently spoke with Brian Cramer, UAS program manager at ComEd, to get the behind-the-scenes story of a utility company pioneering new drone technology that could have enormous implications for worker safety and operational efficiencies throughout the industry.

UFP: How are you currently using drones?

Brian Cramer: If there's a problem that crews haven't been able to identify using normal means – whether it's ground patrols, helicopters and so forth – we'll use drones to provide imaging for inspections to find out what's happening. That’s because the drone can get closer to the problem area, and we can see it from every angle, including from above.

This story hasn't been getting a lot of attention in the national press, but there has been a massive mobilization effort by utilities across the U.S. to send thousands of lineworkers, trucks and pieces of heavy equipment to help restore power to Puerto Rico, where many residents have suffered without electricity since Hurricane Maria pummeled the island last fall.

In December, several electric companies began mobilizing crews at the request of the Puerto Rico Electric Power Authority (PREPA), in a coordinated effort with the Edison Electric Institute (EEI), the American Public Power Association and the National Rural Electric Cooperative Association, deploying nearly 1,500 additional restoration workers and support personnel to the island as of press time.

One of those utilities is Oklahoma Gas & Electric (OG&E), based in Oklahoma City, which is assigned to the Arecibo region on the northwest side of the island, along with Dallas-based Oncor and Houston-based CenterPoint Energy.

On January 18, about 60 of OG&E’s trademark orange trucks arrived at the port in Ponce, Puerto Rico, taking about two weeks to complete the 1,900-mile trek from Lake Charles, Louisiana. The plan is for OG&E’s first wave of 50 crew members to work for 20 days and then relieve those workers by sending a second wave of 50 to continue work for at least another 20 days.

If you’re looking to green your fleet in a way that’s good for both the environment and the business, you don’t have to go about it alone.

That’s the message of Clean Cities (https://cleancities.energy.gov/), which was formed in 1993 by the U.S. Department of Energy and, today, has nearly 100 local coalitions that bring together businesses, fuel providers, vehicle fleets, government agencies and community organizations all pursuing the same goal: cutting petroleum use in transportation. Some of the program’s recent utility fleet success stories include Pacific Gas and Electric, Public Service Company of New Mexico and Atlantic County Utilities Authority in New Jersey.

The idea behind Clean Cities is that investing in green technologies at a meaningful scale can be a high-risk, high-cost endeavor for most fleets to shoulder alone. But what if you could connect with other fleet managers and experts who have real-world experience with vehicle electrification, natural gas, propane autogas, biodiesel or whatever technology you’re looking to deploy?

You could significantly reduce risk and tap into economies of scale that make your green initiative more affordable – and more compelling to the business.

It’s Clean Cities that helps make those connections happen at the local level and across the country, said Dennis Smith, Clean Cities national director, who, prior to joining the program in 2001, served as director of energy services at Atlanta Gas Light Co., a large Atlanta-based utility.