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.