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Renting vs. Buying Heavy Equipment

It’s a common occurrence for utilities and contractors: A piece of heavy equipment is needed, but it’s not immediately available in the fleet, so the project manager rents what’s required. But that may not always be the right strategy – especially when the rental is done outside the fleet manager’s purview.

“I have seen cases where equipment was rented for lengths up to 27 months and turned back in to the rental store,” said Daniel Fitzpatrick, fleet manager for NorthWestern Energy, which provides electricity and natural gas to more than 700,000 customers in Montana, South Dakota and Nebraska. “When this happens, you lose any rental credit and the equipment.”

Paul Lauria, president of fleet management consulting firm Mercury Associates (http://mercury-assoc.com/), has seen it too. “One of the problems we see, particularly in utility companies, is they allow business units to rent equipment to fill a temporary need,” he said. “Two years later, the rental unit is still in the fleet and no one has been paying attention. It would have been cheaper to purchase and then dispose of it.”

Granted, haggling over a purchase or evaluating the merits of rental versus ownership may not make sense when thousands of customers are without service. So, while there likely are no hard and fast rules that utilities can develop to address this issue, following some broad principles can help.

“It makes financial sense to own your equipment,” Fitzpatrick said. He tries to purchase any rental equipment at a reduced price when the rental ends, or when money has become available. “Where a buyout is not an option, focus on the interest rate and controlling costs in the short term.”

Fitzpatrick also tries to avoid rentals by moving equipment around as needed, something that may go against an operator’s wishes for “the brand new rental piece when compared to an older, owned unit.” Still, he said, “decisions to rent should always be made on what is in the best interest of the company and customers.”

And that means evaluating costs beyond the equipment’s rental or purchase price, Lauria said. “If it has an annual fixed cost of $10,000 per year and you use it five days per year, the cost per day is $2,000. You may be able to rent it for much less as needed.”

It’s Not All About Cost
Lauria recommends that the rent-versus-purchase conversation evaluate not just costs, but also “your waiting tolerance. If you’re a water utility, you can’t say, ‘We’ll get to that in six hours because we don’t have a loader available.’ That would be unacceptable, obviously. It’s part science, part art and part common sense.”

He recommends that utilities use a chargeback system to “make costs visible. If the fleet is an order-taker and the business unit says, ‘I’d like this bucket truck’ and the fleet orders it, they’ll not be able to make informed decisions.”

And making an informed decision includes factoring in residual value. A purchase and depreciation may still outweigh rental costs, if the item could be sold when it’s no longer needed. “In my experience, a lot of organizations that purchase outright don’t do a good job in managing residual value,” Lauria said. “It doesn’t occur to them to buy it, use it for six months and sell it. Yes, there are depreciation and transactional costs, but it may still be cheaper.”

Another consideration is whether the rental is for a temporary project or an intermittent need. “It’s more common for organizations to rent fleet assets for a temporary need, like a project that is time-limited,” Lauria said. “There’s just one problem: Everyone has the same need for the same equipment in the same season.”

That ties into the most important question to consider: Is the piece of equipment even available? Ultimately, that may be the deciding factor when determining whether to rent or buy. But setting parameters on when and how to make the decision can prevent costly mistakes.

About the Author: Sandy Smith is a freelance writer and editor based in Nashville, Tenn.

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Making the Most of Rentals
Daniel Fitzpatrick, fleet manager for NorthWestern Energy, has learned to make the most of rentals, often acquiring them when a project is complete. Whenever a piece of equipment is turned in, “the rental store/dealer provides me the make, model, hours, rents paid and buyout price of the equipment,” he said. “This gives me the opportunity to purchase lightly used equipment for our company while maximizing the rents we have already paid.”

But before making a purchase, any rental must meet certain qualifications:
• Is this a model that fits spec?
• Does the utility receive credit toward purchase? The rental payments should reduce purchase price, Fitzpatrick said.
• What interest rate is being charged?
• Is service available and nearby? Fitzpatrick notes this is a “short-term and long-term question. We will need service after we purchase the piece of equipment.”

When rentals meet the fleet’s criteria, it often makes financial sense to purchase the used piece of equipment.

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When Does it Make Sense to Outsource Maintenance?

Even if you have a robust in-house repair shop, chances are that you still outsource portions of your maintenance operations – to save money, quickly fill gaps left by technicians who’ve recently retired or tap into specialized expertise to perform critical repairs.

But how do you determine which aspects of your maintenance operations make the most sense to outsource and which ones you should keep in-house?

UFP recently posed this question to Paul Lauria, who has worked with numerous government and utility fleets for more than three decades as president of Mercury Associates Inc. (www.mercury-assoc.com), a fleet management consulting firm based in Rockville, Md. He offered these four points to consider.

1. Cost
How much money will outsourcing actually save the organization?

“The only way that you’re going to be able to determine if you’re saving money is to know the costs of performing outsourceable fleet maintenance and repair activities in-house versus farming them out to a vendor or contractor,” Lauria said. “And that’s one thing, in my experience, that a lot of organizations, including utilities, don’t have a good handle on. What are the avoidable costs of operating its own garages or of performing a particular type of maintenance or repair activity, for example? If you were to shut down or downsize those garages and shift work to third-party service providers, what costs would go away? That establishes the baseline for determining whether or not you can save money by outsourcing.”

2. Impact
How will outsourcing impact your ability to serve and respond to customers?

“You need to understand how the level and quality of service you provide to the company’s operating units – your customers – would be impacted by outsourcing,” Lauria said. “If you’re going to reduce your costs by 5 percent, even if that’s a multimillion-dollar figure, the question you have to ask yourself is: Will that level of savings be sufficiently large to justify any reduction in service level or quality that might result?”

That’s because utilities, especially, can’t afford to allow excessive downtime with important assets.

“Most utility companies operate their own garages because they have mission-critical equipment that they cannot easily have maintained and repaired entirely by outside vendors. For example, they’re understandably reluctant to relinquish complete control over the maintenance and repair of those assets because, once they do that, they generally will not be able to call out mechanics 24/7 to support the fleet during weather-related or other emergencies,” Lauria said.

Then there’s the impact of any logistics involved with outsourcing. “If you’re talking about outsourcing, where the vehicles need to go to vendor garages for servicing – as opposed to a situation where you’re bringing a contractor in to staff the company’s garages – you now have to take vehicles off-site, which could result in a significant increase in the amount of time that’s spent transporting vehicles to and from vendor shops,” Lauria said.

And you also have to consider any impact that outsourcing could have on in-house staff, Lauria advised. “You want to think about: Are the savings that could be realized – whatever they are – large enough to justify all of the hand-wringing, all of the angst that the organization’s likely to go through to outsource? Because there is going to be a lot of hand-wringing. There is going to be a lot of angst, particularly if there are labor unions involved.”

3. Volume
What types of vehicles offer the best opportunity for outsourcing?

“The best candidates for outsourcing generally are the light-duty vehicles in a fleet, as long as your heavy truck and equipment mechanics are not sitting around, twiddling their thumbs if work on the light-duty vehicles is outsourced,” Lauria said. “Keep in mind that one of the reasons that a lot of in-house fleet maintenance programs work on light-duty vehicles is precisely because they have to employ technicians to work on the mission-critical assets. So, if there’s not a steady diet of line truck or digger derrick maintenance and repair work to be done, you sure don’t want to be sending your service technician vans and passenger sedans out to commercial garages while your truck mechanics stand around staring at the walls. So, a lot of times, light commercial vehicle maintenance effectively is used as backfill for in-house shops.”

4. Expertise
What’s the most common aspect of maintenance operations that utility fleets tend to outsource?

“When you need specialized expertise, for one,” Lauria said. “Depending on the size of the utility, a smaller company may be more likely to outsource dielectric testing of its buckets, for example, because they can’t justify having the equipment to do that in-house. Or, it may be outsourcing hydraulic repairs because it doesn’t have enough volume to justify having the technical expertise on staff. The last thing you want is one of your aerials failing because somebody in-house didn’t properly repair a hydraulic cylinder.”

The idea here is that the more specialized the type of repair, the greater the economies of scale associated with its performance. So, if you don’t have the volume of work to keep specialists busy, then it usually makes financial sense to outsource that work to service providers that perform those repairs all the time.

The Bottom Line
Keep in mind that outsourcing maintenance is not an all-or-nothing proposition. As Lauria put it: “I can outsource simply by saying, ‘You know what? Every second PM, we’re going to let the drivers of our passenger vehicles go to Jiffy Lube.’ Or, ‘We want to see the vehicle at least once a year, but we don’t have a problem with you getting tire rotations and oil changes at a commercial repair shop at other times during the year.’ If that helps a company stretch its in-house maintenance resources during an era in which all fleet owners increasingly struggle to attract and retain qualified maintenance technicians, then that type of outsourcing deserves careful consideration.”

3 Takeaways to Expect from Utility Fleet Conference 2017

Utility Fleet Conference 2017 exists to provide a forum that challenges us in the utility fleet industry to change ourselves – to learn, grow and adapt in an environment where so much change is happening so quickly.

Think about it: Emerging technologies like self-driving systems, connected vehicles and drones are already here and just beginning to make an impact on your fleet – and how you do business. And, as more older fleet workers and technicians prepare for retirement, you have to compete even harder to find workers who are qualified to fill those roles.

The reality is that yesterday’s knowledge, skills and strategies are not enough to tackle today’s and tomorrow’s challenges. We must grow.

But what should we learn? And how can we apply that new knowledge to equip ourselves for long-term success?

Start by attending Utility Fleet Conference 2017 (www.utilityfleetconference.com) October 2-4 at the Kentucky Exposition Center in Louisville, Ky., and expect to leave with these three important takeaways.

1. Gain Insight
Find out about emerging fleet trends and technologies that could impact your job. Attend panel discussions led by experts on important topics, such as “The Future of Telematics and Connected Fleets” and “The Top Trends Impacting Utility Fleet Operations.” There also will be sessions on autonomous vehicles and drones, and their potential impact on fleet.

2. Learn Strategy
Get exposed to new ideas and strategies that can help you take your fleet’s performance to the next level. Learn best practices from peers and industry experts on fleet safety, electrification and maintenance management.

3. Lead Success
Become a more effective leader with your team and senior management. The opening keynote will be delivered by author and leadership expert Jim Finkelstein on “Old School vs. New School: Managing Across Generations.” There also will be sessions that offer real-world strategies on how to expand your influence with senior management and how to recruit and keep your top technicians.

So, if you’re a fleet professional working for an investor-owned utility, public utility, cooperative or utility contractor, Utility Fleet Conference at ICUEE is designed specifically for you. For a full conference agenda, visit www.utilityfleetconference.com.

See you in Louisville!

Sean M. Lyden
Editor

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Stertil-Koni Smart Control System

Heavy-duty vehicle lift leader Stertil-Koni has incorporated its advanced, full-color, touch-screen control console – known as the ebright Smart Control System – into the company’s popular ECOLIFT, an ultra-shallow, full-rise, axle-engaging in-ground scissor-lifting system.

In that way, the ongoing operation and monitoring of the lift is made even easier, placing all critical information directly at the fingertips of the person who needs it most – the busy technician on the shop floor.

First deployed on Stertil-Koni wireless mobile column lifts in 2015, and subsequently rolled out to the company’s battery-operated cable mobile column lifts in 2017, the enhanced ebright Smart Control System provides intuitive ease of use with maximum visual information about the entire lifting process.

This ebright Smart Control System will deliver intuitive controls with actual data about the lift in action; tracking of specific operations and information codes; relevant information available at a glance; actual lifting height displayed; and visual display of maximum programmable lifting height. www.stertil-koni.com

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Greenlee G6 Turbo Puller

Greenlee Textron Inc., a Textron Inc. company, has introduced the G6 Turbo puller to improve contractor speed and efficiency. Capable of pulling 6,000 pounds of force, the G6 Turbo model pulls up to 60 percent faster than the competition, according to the company.

The 120-volt AC drive motor can pull 6,000 pounds of maximum force and 4,000 pounds continuously. Dual capstans on the G6 Turbo puller deliver faster pulling speeds across the entire load spectrum of the pull. Control boards monitor the current draw of the G6 Turbo puller motor and protect it from overloading the puller. Built-in spring-loaded pins allow for quick changeovers and easy setup, and eliminate the hassle of loose pieces.

The G6 Turbo puller is equipped with features to reduce downtime and injuries. A footswitch safely controls motor power without the operator placing themselves in front of the rope. The 125-pound G6 Turbo puller is built on a dolly, making it easier to move the unit from worksite to worksite. Handles on the dolly and the boom allow operators to easily and ergonomically adjust for height. A gearbox feature prevents rope and cable tension from pulling back into the conduit when the operator stops pulling. Setup time is faster and easier than other pullers on the market. http://greenlee.com/g6

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EUFMC 60th Anniversary

This year, the Electric Utility Fleet Managers Conference celebrates its 60th anniversary. Sixty years is bound to bring a significant amount of change to anything, and bucket trucks are no exception. Utility Fleet Professional talked with industry professionals for their thoughts on the evolution of aerial lift devices.

Bucket trucks 60 years ago were very useful for the times. “The first bucket trucks were tremendous improvements to work practices that eliminated climbing poles,” said Joe Caywood, director of marketing and strategic initiatives for Terex Utilities. Caywood said an innovative fiberglass boom also allowed lineworkers to work on and around live lines without being tied to the pole. “At the time, poles were shorter and chassis did not support large equipment, so the average distribution line truck was sized more like today’s trouble truck.”

In the last 60 years those first bucket trucks have seen transformation and progress in a variety of areas. “Equipment capabilities have leaped forward and the ability to improve work methods has provided a smarter, safer environment for the lineworker, with more productivity, less fatigue, and less long-term wear and tear on the worker,” said C. Michael Anderson, P.E., a North Carolina-based engineering consultant formerly with Altec Industries. “In the mid-1980s, the equipment changed significantly. Work methods allowed the lineman to take advantage of available advancements in hydraulics, composites, and vehicles such that ergonomics and safety are major features in addition to cost and productivity.”

“From a repair and maintenance standpoint, I think the engineering has come a long way [in the last 60 years],” said Judie Taylor, president of DUECO. “It’s not only about the engineering of the bucket trucks and the use of them, but also being able to maintain them better.”

Mechanical Advances
Progressive steps forward have been taken during the history of the bucket truck in regard to hydraulics, chassis and other important parts. “Power sources have historically relied on the chassis engine to provide power for the boom,” Caywood said. “Advancements with PTOs have significantly improved efficiency and reliability. Changes from carbureted gas engines to computer-controlled engines significantly improved engine control and reduced work site noise. Today advanced hybrid solutions provide a quiet alternative energy source supplied from onboard stored energy.”

“We are able to diagnose a lot more on the chassis side of things with troubleshooting and the computerization of that,” Taylor said. “On the tower side of it, the true bucket truck side of it, a lot of the hydraulics obviously have changed. Safety features have definitely been enhanced.”

Similar to chassis changes over the years, aerial devices have evolved significantly. “With pole heights increasing, the aerial devices increased in working height and platform capacity to match the requirements of the job. Over this time, features and options also continually advanced,” Caywood said. Some of these enhancements and developments include the single stick controller, material-handling jibs, hydraulically compensated (coordinated action) booms, telescopic booms, elevators, basket rotators and lifters, and advances with dielectric materials.

“Back when I started in 1994, I would say 48-foot units were significant and probably the most popular distribution units, whereas now 55-foot units are the most popular,” Taylor said. “There is an increase in the line heights, and pole heights have changed so utility trucks have had to change with that.”

Safety Regulations
Mechanics and power sources have gotten bigger and more complex, according to Darin Hinnergardt, Altec Sentry Safety Program manager, “which leads to increased training for a better educated, more informed workforce. As a result, there is a need for safer aerial devices and digger derricks,” he said.

Safety regulations have also helped the industry to progress, with the addition of OSHA’s 1926.1400 standard to address cranes and digger derricks in the field being the most recent. But Hinnergardt said that it wasn’t until 1971 that OSHA was established and brought guidance to the industry. “In the ’70s, the lower boom insert was introduced to help protect the ground worker,” he added.

Caywood said the biggest advantage has been the reduction of wear and tear on today’s lineworkers. “Linemen are working much longer, in better health, because of the reduction of stress on their body from not having to climb poles all day long. Features we take for granted such as boom interlocks and moving outrigger alarms aid the operator to perform their tasks safely.”

The Next 60
A look to the future will see continued focus on innovation, integration and weight management, according to Caywood. “Fuel savings will be realized by each pound that can be reduced from the aerial device through use of lighter-weight, higher-strength materials combined with efficient systems that integrate and control chassis, aerial and operator,” he said. “As with all improvements that have been yielded over the years, they start with the voice of the customer and recognizing their needs.”

Hybrid systems have been one of the biggest recent advancements, and Taylor expects that to continue in the future. “The introduction of hybrids certainly has, I think, helped the industry to be aware that there is definitely a need for alternative fuels,” Taylor said. “I do think hybrids are here to stay and we will see more evolution of that technology. I also think from a regulatory standpoint and a safety standpoint we will continue to see more stringent regulations on the industry with the operation of bucket trucks and digger derricks.”

About the Author: Wade Vonasek is a writer and editor. His work has appeared both in print and online for publications such as Mass Transit, Professional Tool & Equipment News, Fleet Maintenance and more. He resides in Bristol, Wis.

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The Electric Utility Fleet Managers Conference

It all began in 1953. The desire of utility fleet managers for a convention of their own, one that would address the specific needs of their operations, became the mission and vision of Joseph B. Baker, the founder of Baker Equipment Engineering Co., and Jean Y. Ray, the fleet manager at Virginia Electric Power Co. (now part of Dominion Power), who hosted the first Public Utility Fleet Managers Conference at the Tides Inn in Irvington, Va. While the conference did not officially change its name to the Electric Utility Fleet Managers Conference until 1964, EUFMC was born. ~ EUFMC History 1953-2013

In 1961, 28 fleet managers and about 25 suppliers attended the Electric Utility Fleet Managers Conference. Today, the nonprofit association hosts 100 fleet managers from about 60 investor-owned electric utilities, electric cooperatives and electric contractors from the U.S., Canada and South America, and more than 250 representatives of about 95 manufacturers and service providers.

In its early years, EUFMC was truly a public utility conference. Its membership included fleet managers from electric, telephone and gas utilities, among others. By the early 1960s, its founders had redefined the focus of the conference, centering more on electric utility issues. Since 1951, when the first meetings took place to plan the inaugural EUFMC in 1953, 32 fleet managers from operations across the U.S. have served as president of the conference.

“EUFMC has always been organized by a small group of utility fleet representatives for the benefit and education of the utility fleet professionals that attend the event each year,” said Gerald Owens, fleet manager at Oncor Electric Delivery and this year’s EUFMC president. “The board of directors consists mainly of utility fleet professionals, all volunteers who devote time to the conference with the support of their companies.”

Sixty Years of Service
Decade by decade, EUFMC has served the changing needs of utility fleets and addressed the continuing advent of new technologies.

“Some things never change and that’s a good thing about EUFMC,” said Ven Burwell, retired fleet manager from Duke Power who served as EUFMC president from 1991-1992. “At the conference, fleet managers were concerned about how to save maintenance costs, and we were very interested in new technologies such as electric, natural gas and light-duty diesel trucks. EUFMC has always been a great conference where we could learn about fleet ideas and make more effective decisions.”

Conference programs listing topics of discussions across the years tell the story. In the early 1960s, EUFMC attendees were discussing derrick and digger combinations and aerial devices as well as all types of trucks and bodies. Over the years, topics have included legislative and regulatory issues and a range of fleet management subjects such as vehicle utilization and acquisition, benchmarking, fleet management software, life cycle cost models and best practices in preventive maintenance. In recent years, the conference program has covered the latest vehicle, equipment and shop technologies as well as alternative fuels and managing environmental compliance.

Bringing People Together
EUFMC promotes cooperation between fleet professionals and suppliers who come to the annual conference prepared to discuss technical issues and operational needs, address challenges, share best practices and find solutions. Activities include a drive-through utility equipment demonstration and an exhibition of the latest equipment and services for utility fleets, the site today of more than 60 displays.

“While some of the original manufacturers at EUFMC are no longer in business, there has always been an effort by suppliers to bring engineers to the show, people who can talk to fleets, listen to their suggestions and solve problems,” said Dick Rosenmeier, retired fleet manager at Public Service Electric and Gas Co., who was EUFMC president from 1982-1985. “That’s one reason it was always desirable to be invited. It’s an original concept that still stands because it’s a good one.”

“I have been attending EUFMC for 58 years,” related Lenny Fernandez, recently retired utility sales manager at Reading Truck Body. “The conference has always been about attaining knowledge from fellow attendees that you could not get anywhere else. Vendors and utility representatives come here with knowledge of products and what works in their operations.”

For many attendees, EUFMC has continued to be successful because it has not lost sight of its original mission – to bring together decision-makers from both sides of the partnership between fleets and manufacturers.

“It’s hard to imagine that any group can stick to its founding principles after so long,” said Skip Baker, president of Baker Equipment and grandson of conference founder Joseph B. Baker. “Yes, it has grown significantly, and the topics of conference discussions have changed with evolving technology and work practices, but the group’s fundamental reason for assembling year after year hasn’t. Fleet managers come to Williamsburg to learn and share.”

About the Author: Seth Skydel has more than 27 years of truck- and automotive-related publication experience. In his career, he has held editorial roles at numerous national business-to-business publications focusing on fleet and transportation management, vehicle and information technology, and industry trends and issues.

Fleet Management: Addressing Core Issues Minimizes Costs

Many companies are facing their biggest budget challenges in their history, noted Bob Pitts, senior principal at Accenture. Additionally, companies that typically operate large, specialized fleets of vehicles in support of their operations face additional pressures to reduce costs to meet these budget challenges. These fleets inevitably require large commitments of scarce capital and are expensive to operate and maintain while complying with corporate and legislative mandates. A proper strategic focus can deliver exceptional value, enhance reliability of service and improve public perception.

Pitts explains that turning a fleet from a necessary evil into a strategic asset requires addressing several core issues:
• Fleets that are suboptimized will drive operational and capital expenses higher than needed.
• Suboptimized fleets have more vehicles than necessary and asset utilization is low.
• Fleets are treated as a cost of doing business rather than a strategic asset.
• Supplier management is not advanced and fleets do not leverage spending to drive savings.
• Full life-cycle management and planning are subpar and usually driven by budgetary constraints.

“Key issues in fleet management involve capital commitments and management, as well as operating effectiveness and cost,” stated Mike Reiss, associate principal at Accenture. “Fleet asset utilization is not typically tracked or measured at an appropriate level, which leads to unwanted outcomes, such as having more vehicles than necessary, additional operating and maintenance costs, and not always having the right vehicles for the jobs they are needed to do. Additionally, fleet costs are usually fragmented and are rarely captured in total, which leads to problems in trying to adequately and accurately assess operating efficiency and evaluate strategic opportunities.

“Fleet management and fleet operations are not generally viewed as core competencies by nontransportation companies,” Reiss continued, “so it’s not surprising that focusing the spotlight on key areas will illuminate opportunities for operational improvements. Much of these opportunities can be identified and acted upon through best practices benchmarking, implementing and employing the appropriate decision support technology, and generating and maintaining high-quality data for monitoring and measuring progress and results.”

Accenture’s integrated fleet management methodology can provide a set of strategies to minimize total cost of ownership:
Buying smart: Strategic sourcing techniques drive some of the greatest value attainable in fleet management.
Operating smart: Pay rigorous attention to core operating practices involving maintenance and repair, fuel management, parts management and inventory control.
Selling smart: Disposing of vehicles at the appropriate time in their life cycle to maximize residual value.

An integrated fleet management program requires that all of these activities be analyzed, measured and managed as interdependent fleet management functions.

For more information, visit www.accenture.com.

About the Author: Seth Skydel has more than 27 years of truck- and automotive-related publication experience. In his career, he has held editorial roles at numerous national business-to-business publications focusing on fleet and transportation management, vehicle and information technology, and industry trends and issues.

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Management Strategies

It Was a Dark and Stormy Night
It was one of those very intense New England winter storms that, in February 2011, buried Vermont in up to 4 feet of snow, not counting drifting snow. So much snow had piled up during the night that when Dan Mackey, fleet manager for Central Vermont Public Service, headed for his office in Rutland, he realized it was impossible to make it. The roads had not yet been sufficiently cleared, so Mackey had to settle for the nearby Poultney, Vt., office to try to manage the fleet from there.

About a dozen customers from the Benson, Vt., area were without power, a nasty situation to contemplate in the dead of winter in a rural area. Pat Traverse, operations supervisor, found out that the roads leading into that area would not be plowed for another day. Mackey overheard the comment and asked, if he could get someone over there with the GT2000, could service be restored to those customers? Traverse responded, “Let’s try it. Service restoration is very important and if we could get service restored to these few customers, the Poultney district would be finished with storm cleanup.”

After explaining the situation and conditions, Ed Baker, shop foreman, volunteered to drive the only equipment that had a chance of making it to the downed lines in that type of weather. He loaded a Prinoth GT2000 track carrier mounted with an Altec AM55 aerial device onto the back of a semitrailer and headed west to Benson. Baker went as far as he could on the unplowed roads before he had to stop. Brian Crossman, second-class lineman, and Baker then unloaded the GT2000 into the snow and ice and headed toward the broken line.

As the GT2000 powered its way to the target, snow built up in front of the windshield, about halfway up. This is equal to about 6 feet of snow that the GT2000 had to muscle through, hauling the 55-foot aerial device. After several hours of hard, cold work by man and machine, power was restored thanks to the combination of the Prinoth GT2000 and the Altec AM55 material-handling aerial device, along with a highly skilled lineman and a very capable vehicle operator.

In June 2012, the Vermont Public Service Board approved the merger of Green Mountain Power and CVPS. CVPS, a shareholder-owned electric utility, serves one of the most rural territories in the country. In place at CVPS is a fleet of more than 300 vehicles and nearly another 150 pieces of equipment. The utility’s transportation team provides a wide range of vehicle and maintenance services and, as was seen in February 2011, also fulfills a vital role as frontline support for operations during storms.

Bringing Tree-Trimming Fleet Needs to the Forefront
In early September, NAFA Fleet Management Association announced the formation of the Utility Line Clearance Tree Equipment Committee. The committee’s primary activities will include working to bring equipment needs to the attention of manufacturers. The objectives of ULCTEC include collaborating on industry equipment, regulatory issues and other concerns. The group also plans to standardize the approach to operator training and develop an operator training template that covers key areas for all equipment. ULCTEC will interact with both the NAFA Corporate Fleet and Utility Fleet committees.

Dave Lynn, CAFM, equipment service manager for Penn Line Service, is the committee chair, and Lenny Hedgelin, fleet and equipment training coordinator for Lucas Tree Experts, is ULCTEC’s vice chair. The committee’s secretary/treasurer is Kevin Fitzpatrick, CAFM, of Wright Tree Service, and its reporting officer is Claude Masters, CAFM, of Florida Power & Light. Other current ULCTEC members are Chuck Cotton of Lucas Tree Experts and Mike Harris, CAFM, of Carolina Tree Care. Committee membership is limited to NAFA members who have utility line tree clearance responsibilities.

Asplundh Crews Continue Storm Work
After Hurricane Isaac made landfall in late August, residents of Louisiana and Mississippi were among the first to see equipment and crews from Asplundh Tree Expert Co. Included were approximately 1,700 workers from 21 states who joined with hundreds of local Asplundh employees to remove storm-damaged limbs and trees. The crews were sent to assist utilities restoring power in the wake of the hurricane, including Entergy Corp., Central Louisiana Electric Co., Mississippi Power and Magnolia Electric Power Association.

Hundreds of these mobilized crews began their trek for storm restoration work weeks earlier when Florida Power & Light began to prepare for Hurricane Isaac to hit the southern half of the state. When Isaac skirted Florida’s western coast and headed for New Orleans, most of the crews were sent to Louisiana and Mississippi. Asplundh also sent its mobile storm center trailer to Baton Rouge, La., to be a base of operations and communication for its crews. At the same time, Asplundh’s storm coordination team, in its Willow Grove, Pa., headquarters, worked throughout the Labor Day holiday to expedite the movement of crews and address logistical issues.

Life Cycle Cost Modeling
The issues are not unfamiliar to utility fleet managers. While developing models for vehicle replacements that meet operational and cost needs, fleets must also compete for capital funds and address the impact of inconsistent funding. If the fleet is aging due to a lack of capital for replacements, there is the added concern about having enough trained technicians to care for older vehicles.

Fleet managers involved in this process ask themselves important questions. Why do we replace vehicles at specific intervals? What are the most recent utilization patterns and will they change? What are current and projected purchase prices? What are our parts and labor costs for particular types of equipment? What are our projected residual values at different replacement intervals?

The experiences of three fleets shed some light on this challenging aspect of utility fleet management and the ways in which positive results can be realized.

Kansas City Power & Light
“Our fleet is comprised of about 1,570 units and the average age of the equipment is just under eight years,” said Steve Granger, fleet manager. “Our life cycle study objectives took into account the aging fleet, our business model, and evaluations of previous practices and assumptions. The goal was to optimize the use of capital and level operating and maintenance costs.”

The result of this predictive approach, according to Granger, was an increase in capital funding of 30 percent over three years. “That was possible,” he added, “because we had a clear understanding of our objectives as we buy vehicles and equipment to support our company’s transmission and distribution and generation assets.”

Commonwealth Edison
Spanning a wide variety, there are nearly 3,100 vehicles and 1,100 pieces of equipment in the ComEd fleet. Annually, the utility’s vehicles travel more than 28 million miles.

“We had inconsistent funding from 2001 through 2009, which created large peaks and valleys in spending,” said Mike Radziewicz, director of fleet. “That also resulted in an aging fleet where about 40 percent of the vehicles and equipment were beyond life cycle. At the same time, 68 percent of the fleet is alternatively fueled and there’s interest in expanding the number of hybrid electric vehicles.

“Historically,” Radziewicz continued, “we had difficulty in competing for capital dollars and mathematically proving why we need consistent funding. Large groups of vehicles were coming due for replacement without funding in place and, at the same time, parts and labor costs and the number of annual work orders we generated were becoming unpredictable.”

The ComEd fleet’s recommendation for capital spending was based on a three-year – versus a five-year – vehicle life cycle. “We also indicated the benefits of maintaining recommended life cycles,” Radziewicz related. “Included were lower overall cost of vehicle ownership from reduced maintenance costs and improved residual values, reduced vehicle downtime that improved crew and fleet productivity through quicker maintenance turnaround, along with reduced rental costs.”

A strategy to optimize vehicle investments at ComEd was based on analyzing vehicle life cycle costs to determine optimal replacement cycles, and establishing a three- to five-year plan to bring the entire fleet back into an acceptable life cycle. “We used risk scoring to prioritize vehicle replacements,” Radziewicz said. “We standardized vehicle builds and types by vocation and matched fleet size to current and planned organizational staffing. The results include a vehicle replacement plan that calls for three years of consistent funding. We are also working to level future spending in the long-range budget.”

Pike Electric
With 7,500+ pieces of equipment, Pike Electric fields one of the largest electrical construction contracting fleets in the United States. Included are bucket trucks, digger derricks, cranes, pickups, and an assortment of dozers, excavators and backhoes.

To address replacement needs, said Cliff Edwards, vice president, fleet and support, Pike looks at controllable and other factors. Included are capital and maintenance costs and salvage or residual values. Other factors are standardization, the equipment’s condition at the time it’s being turned in, the benefits of an auction service or private sale, storm response and business growth needs, and contract stipulations. Additionally, replacement plans are impacted by equipment lead time and rental vehicle availability.

By taking into account all of the many factors outlined by these three utility executives, a path to determining the optimum time for vehicle and equipment replacement becomes clear.

Editor’s Note: These scenarios were first presented at the 2012 Electric Utility Fleet Managers Conference. EUFMC 2013 will be held June 2-5 in Williamsburg, Va. For more information, visit www.eufmc.com.

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