The Future of Utility Service Fleets

As the world accelerates the march towards a more energy efficient and connected model, service fleets will undoubtedly need to be reconfigured in order to meet the new rules of the game. The future of utility service fleets will be focused in two major fronts. First, the management aspects of a fleet of hundreds or thousands of geographically dispersed vehicles; new networking technologies enable utilities to collect, warehouse, and data mine reams of expansive data. Second, we will discuss switching from increasingly expensive petroleum-based fuel vehicles to alternative fuel vehicles being created for utility fleets.

Many integrated mobile communication systems manufacturers are providing technologies that enable utility fleet managers to take advantage of the broad geographic coverage offered by cellular networks that are purpose-built to address the demand for high-volume, low-cost machine–to-machine (M2M) data applications.

Dual-mode tracking is the latest step in the evolution of asset data transmission. GPS, mobile communications, and Internet integration give truck drivers the ability to perform more tasks, such as finding outage locations and transmitting service reports, and enable these drivers to operate much more independently on the road.

A 2007 Survey of Fleet Operators looked at general fleet operator interest in installed and handset-based Mobile Resource Management (MRM) solutions, as well as willingness to pay and intent to purchase these systems in the near future. This survey was based on a nationwide telephone survey of more than 500 fleet operators. Among the findings:

• Participating fleet operators using MRM tracking systems expressed a high level of satisfaction with these systems. Some 73 percent indicated that they are extremely satisfied or very satisfied with the system, while only 9 percent indicated that they are not satisfied with their systems.
• Interest in fleet vehicle GPS tracking was rated highest among the systems and services tested, with many fleet operators viewing GPS tracking as an important tool for improving driver productivity, route optimization, dispatching efficiency and customer service.
• Overall, 80 percent of surveyed fleet operators reported that their drivers use cellular phones to communicate while on the road, compared to 66 percent in 2003.

Given this high market interest and technological advances, communicating with drivers has already become instantaneous and simple, with mobile phones, wireless networked PCs and embedded devices enabling the fleet manager to notify drivers of their responsibilities and vehicle maintenance protocols.

The single development that carries the most promise in future utility fleet vehicle management is telematics. Telematics uses wireless communications combined with GPS technology to enable data transfer and collect information about the vehicle including its location, mileage, and service condition.

Currently, most utility fleet management procedural systems depend upon written or electronic (after the fact) reporting and data. Expenses, vehicle condition, vehicle replacement, and other key data is captured, stored, and mined in the company's fleet management system (or that of the fleet lessor or other vendor). Actions, based on this information, often occur weeks later.

Telematics solutions shorten the time lag in this process. Rather than the driver merely reporting events after the fact, telematics enable decision systems that impact these events as or before they occur.

In the past, vehicle systems and components failed without much warning. As an example, a driver might have been driving when the utility vehicle began to sputter and stall. A telephone call to the dispatcher or maintenance provider summoned a tow truck. The problem (for example, a bad alternator) was diagnosed and repaired.

A telematics-enabled vehicle maintenance system could diagnose the condition (the faulty alternator) before it fails, communicate the looming problem to the dispatcher, and then direct the driver to a nearby service vehicle repair facility. Downtime is drastically reduced with management only minimally involved in the process.

The utilization of alternative fuel vehicles, like biodiesel or Hybrid Electric Technologies (HEV), is expanding. New or converted natural gas and propane vehicles can cost as little as a few thousand dollars more than their conventional counterparts for light-duty vehicles, or up to tens of thousands of dollars more for medium- and heavy-duty vehicles. Offsetting this however, alternative fuel vehicles typically have lower operational and maintenance costs and can be eligible for significant state and federal incentives and other funding.

• Biodiesel - Typically, biodiesel blends can be used in conventional diesel delivery vehicles. Vehicles fueled with biodiesel blends might require additional maintenance, especially during the first months of use. This generally means more frequent fuel filter changes during the first year of operation.
• HEV - Hybrid electric vehicle (HEV) technologies are being implemented in greater numbers as battery and drive technologies progress. HEVs are good candidates for delivery service applications because regenerative breaking allows the batteries to recharge frequently on the stop-and-go routes of most delivery vehicles. Several major delivery fleets have begun adopting HEVs into their operations.
• Ultra-low Sulfur Diesel - Most U.S. fueling stations (and all stations in California) offer ultra-low sulfur diesel (ULSD). Although ULSD is not an alternative fuel, it provides significant emissions reductions when used in vehicles equipped with advanced emission control technologies. All model-year 2007 and newer diesel vehicles (powered with model-year 2007 and newer engines) are required to use ULSD. Visit the Clean Diesel Fuel Alliance for more information. Vehicles can also be retrofitted with "clean diesel" technologies.
• Other Alternative Energy Powered Vehicles - Fully electric vehicles are used for many delivery and light utility service applications. Flexible fuel vehicles (FFVs) are capable of operating on gasoline, E85 (85% ethanol, 15% gasoline) or a mixture of both. Most FFVs are light-duty vehicles.

Availability, cost, and implementation issues for alternative fuels depend on the fuel type, fuel suppliers, and local market and environmental conditions.

If not already available, the cost of building natural gas infrastructure can be significant. However, entering into supply contracts with local suppliers reduces fuel costs greatly. Propane infrastructure is typically less expensive to install than natural gas infrastructure.

Biodiesel normally can be used in existing diesel fueling infrastructure. It is important to avoid pitfalls related to biodiesel's properties by thoroughly cleaning, maintaining, and inspecting equipment. For more on biodiesel use and infrastructure considerations, see the Biodiesel Handling and Use Guidelines found on National Renewable Energy Laboratory's website.

Hybrid electric vehicles do not require special infrastructure. Electric vehicles can be recharged via standard electrical outlets or by using electric charging stations.

The Smart Energy Alliance is an industry association that combines the deep knowledge and strengths of Capgemini, Cisco Systems, GE Energy, Hewlett-Packard, Intel and Oracle to help utilities transform their transmission and distribution operations. Using a flexible, modular framework, the Smart Energy Alliance's open collaboration delivers innovative solutions that leverage industry expertise, technology leadership and complementary capabilities to help customers drive greater productivity and profitability. One current project is the design and implementation of the "Future Truck for Service Fleets."

It is important to keep in mind that steady progress is being made on both the telematics-enabled fleet management systems and alternative fuel-powered fleet vehicle fronts as we retool future utility service fleets.

An interconnected M2M communications system will not only relay information back and forth between a central hub and a fleet of geographically dispersed utility vehicles, but also perform routine tasks, saving time and lowering inefficiencies that impact maintenance costs. The use of collected data in predictability models will also allow for the implementation of much more reliable risk management and vehicle maintenance schedules allowing for fleet vehicles to extend operation life cycle and recoup the initial investment into mobile fleet management technologies.

While getting these systems in place, utility fleet operators will also have to tackle the increasing cost of diesel fuel and gasoline along with the stark reality of dwindling global petroleum reserves. It seems clear that utility service fleets, once backed up by a national fueling and maintenance support infrastructure, must adopt alternative fuel vehicles as an integral part of their retooling strategy.