Potential Impacts of Energy Policy Act on Electricity and Natural Gas Provider Fleets

Section 501 of the 1992 Energy Policy and Conservation Act (EPACT) mandates that alternative fuel providers who sell such fuels for transportation acquire alternative fuel vehicles (AFVs). The potential impacts of this mandate on the two largest groups of alternative fuel providers—electricity and natural gas (NG) providers—are presented. Nationwide, 166 electric-only utilities, 127 NG-only utilities, and 55 dual-utilities are covered by EPACT. Together, these companies own or operate nearly 122,000 light-duty vehicles in EPACT-defined metropolitan areas. Some 63 NG producers and transporters, which have 9,700 light-duty vehicles, are also covered. Covered fuel providers are expected to purchase 2,710 AFVs in 1996 and 13,650 AFVs by 2001. NG companies already have 19.4 percent of their existing light-duty vehicle stocks as AFVs, dual companies have 10.0 percent, NG producers and transporters have 7.0 percent, and electric companies have 1.6 percent. If the existing AFVs count toward meeting the Section 501 requirements, NG providers (utilities, dual utilities, producers, and transporters) will need to make little effort, but electric companies will have to make substantial commitments to meet the requirement.