FPL Group and Duke Energy Pledge 10-year, $600M+ Commitment to Transition Fleets to PHEVs and EVs
27 September 2009
FPL Group, Inc. and Duke Energy last week announced a 10-year commitment to transition their company cars and trucks to plug-in hybrid or all-electric vehicles. The announcement was made during the Clinton Global Initiative’s (CGI) fifth annual meeting in New York City.
The joint commitment represents more than 10,000 vehicles and potential revenues of at least $600 million for manufacturers who can produce viable plug-in electric vehicles. This minimum number does not include a premium that is anticipated for electric vehicles, so actual revenue opportunity would be more.
Also, based on a 2.45 metric ton reduction in green house gases per vehicle conversion, this has the potential to reduce more than 125,000 metric tons of greenhouse gasses over this ten year period.
Duke Energy and FPL Group will begin this transition in the coming years with the goal that 100% of all new fleet vehicles will be plug-in electric vehicles (PEVs) or plug-in hybrid electric vehicles (PHEVs) by 2020. In announcing their partnership, FPL Group and Duke Energy called for a wide variety of organizations to commit to greening their vehicle fleets, including corporations, governments, universities and other agencies.
The initiative will begin 1 Jan. 2010, when both companies will begin tracking their commitment. While passenger vehicles and smaller trucks are already planned, Duke Energy and FPL Group will work closely with manufacturers to test and measure the effectiveness of prototype bucket trucks in 2011 and 2012. The remainder of the commitment period will be spent transitioning vehicles, educating the public, soliciting additional partners and providing periodic progress updates. The project is scheduled for completion by 31 Dec. 2020.
A 10-year commitment gives us time to adopt, test and integrate new technology into fleets as a wider range of vehicles are developed. Currently, the only near-term options for available PEV supply are sedans, minivans, vans and a few bucket trucks. Over a 10-year horizon, it is expected that options will be available for most utility service categories.
—Jim Rogers, chairman, president and CEO of Duke Energy
This commitment will provide the transportation industry the evidence that a robust market for PEVs exists. FPL introduced the technology for medium-duty, hybrid bucket trucks and developed the concept of using biodiesel in hybrids, and we hope this initial joint commitment will encourage corporations, governments, universities and other non-profit organizations to join us in converting their fleets to plug-in hybrid or all-electric vehicles by 2020.
—Lew Hay, FPL Group chairman and CEO
The FPL Group/Duke Energy initiative was developed following the March 2009 Clinton Global Initiative Planning Retreat, a forum for building industry leadership.
FPL Group, Inc. is a leading energy company with 2008 revenues of more than $16 billion, approximately 39,000 megawatts of generating capacity, and more than 15,000 employees in 27 states and Canada. Headquartered in Juno Beach, Fla., FPL Group’s principal subsidiaries are NextEra Energy Resources, LLC, the largest generator in North America of renewable energy from the wind and sun, and Florida Power & Light Company, which serves 4.5 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the country.
Through its subsidiaries, FPL Group collectively operates the third-largest US nuclear power generation fleet.
Duke Energy is the third largest electric power holding company in the United States, based on kilowatt-hour sales. Its regulated utility operations serve approximately 4 million customers located in five states—North Carolina, South Carolina, Indiana, Ohio and Kentucky—representing a population of approximately 11 million people.
Let's not forget that USA operates about 625 coal fired power plants, producing almost 40% of all USA's CO2. It is by far the world worse polluter in that domain, even if China (with 4 times the population) is approching USA's record total level.
Duke is the third largest power producer in the country using various power sources including coal, nuclear, hydro, wind etc.
Duke's coal fired power plants are among the top two worse polluters in the country with 15.52 lbs/CO2 oer MW. Only Reliant does worse wiith 17.39 lbs/CO2/MW.
USA's coal fired power plnats are very old. Most date back to 1940 to 1984 era (average 1964) and are real bad polluters.
Duke intend to electrify their vehicles over 10 years is commendable but modernizing their 15 worse coal fired power plants could do much better. Switching only 10 of their worse plants to NG, Wind, Sun, and even Nuclear could do 100+ times better than electrifying their 10,000 vehicles.
Sorry, but this is a case of barking up the wrong tree for publicity.
Posted by: HarveyD | 27 September 2009 at 09:15 AM
HD has a big point.
Posted by: kelly | 27 September 2009 at 10:46 AM
Harvey, Kelly... your real issue is not "pollution" or CO2 or fuel use. The global warming fear campaign is actually a thin disguise for population control. Your honest concern. And, one of mine as well. But I would rather address that issue head on.
Why continue with the thoroughly baseless AGW campaign and suffer a credibility loss so severe it will destroy the population efforts as well? Quit hiding behind curtains and tell the world who you are and what your so damned worried about. Too many human beings on earth.
You might find honesty to be a powerful entity.
Posted by: Reel$$ | 01 October 2009 at 09:56 AM
Harvey
Your facts are so wrong that either you made them up or your source made them up.
Duke is a leader in ghg reduction. It is also a world class leader in operating power plants of all kinds. Most of its new coal power plant lead in ghg emissions. Duke is building a new coal plant to replace the older ones. It is also planning 5 new nukes. Duke is a leader in wind too. FPL is ahead in that category. It also has 10 biomass power plants in the works.
On top of all this they just happen to be a leader in development of electric vehicles. Shame on you Harvey. Before telling folks what they should be doing maybe you should check first to see what they are doing.
Posted by: Kit P | 01 October 2009 at 03:55 PM
Kit:
I did not make up the official figures on current (existing) 625 coal fired USA power plants. Duke's plants are realy number two (worse) in that specific domain in the nation. I do not work for Duke's competitors. I use 96% Hydro and 3% Wind and 1% Nuke.
Time will tell if Duke will really shut down it's 25 worse coal power plants (or many more)during the next decade. When they do, everybody may be better off. Hope that the other 600 will follow. Cheap coal has very strong lobbies as did cheap crude oil for decades.
I'm not against Nuclear (nor NG) to replace many old coal power plants and the introduction of many more Wind turbines. Solar and Geo-thermal should also be used more in the near future. The power source mix have to be progressively changed in favour of cleaner sources, specially with the arrival of PHEVs and BEVs.
There's enough Wind power potential in USA and Canada to meet the majority of our e-power requirements. USA enough Sun power potential for many times its needs.
Posted by: HarveyD | 02 October 2009 at 11:12 AM
"I use 96% Hydro"
Which means that Harvey does know anything about his electricity is produced.
Posted by: Kit P | 02 October 2009 at 08:24 PM