Zoomi Life

Several utility companies are apparently behind the scenes working to convert most of their vehicles to plug-in hybrids or all-electric vehicles. Many of them see the extreme benefits, such as quieter vehicles, lower maintenance costs, and grid-reducing demands. I reported on the $50 billion plan from CalCars to rejuvenate Detroit with non-government bailouts and this plan is very similar.

While the plan is in formative stages, it’s ambitious and realistic. It has backers such as Xcel, Progress Energy, Pacific Gas & Electric, Edison International and the Edison Electric Institute. The idea is to gather together utility companies nationally and put together one large order for a plug-in hybrid utility vehicle, such as the standard 3-ton vehicles most of them use in similar configurations, and a large down-payment on delivery. This would give the auto industry not only the incentive to quickly roll out the newer technology, but to do it with the knowledge that if it’s done well, these companies replace about 20% of their fleets each year.

Utility companies have long been the target for testing platforms, such as Subaru’s electric car being tested in New York and California, and Ford’s plug-in hybrid SUV in Oregon. A hybrid version of the popular F550 these companies use is already in limited production and a plug-in version wouldn’t be too far off if incentive to make one were there.

Electric utilities have a big reason for wanting plug-in electrics beyond their initial savings in fuels and maintenance too: grid stabilization. Most utilities are heavily regulated by governments and do not generally make more money during peak usage periods—they usually lose money because of high demand and operational costs, with lower return per watt. PHEVs usually draw lower charging pulls than all-electrics due to slower charging and generally smaller battery banks. This means they don’t heavily affect the grid. They also have the advantage of sucking up surplus power that would otherwise likely be wasted during the off-peak hours.

Of course, the bailout from The White House has already happened, but this plan could at least delay future begging for more bailouts. It also gives the Big 3 a reason to think about changing their ways – and quickly.

Source: Gas2.org