Posted Jan 6, 2015, 1:23 PM
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Join Date: Jun 2006
Posts: 2,109
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Even though diesel is still between $3 and $3.50, that does put their costs down about 25% currently and it should still drop further. At a 25% drop, that is still approximately $12 Million a year in unplanned excess funds.
That value would grow as diesel continues its drop as well.
Also, UTA does purchase orders for diesel every 3 to 6 months. This means that it could lock in lower costs over a longer period based on the current cost trends. When fuel was going up, UTA would lock in the lower price for a longer duration. With it going down, they may be able to get a split difference and save again by basing current cost and projected cost at the end of the deal.
In total, the savings will be about the same for diesel as it is for unleaded.
Also, UTA has been purchasing more CNG buses. This will help keep their fuel costs down as more enter the fleet.
Lastly, while not strictly UTA, there is at least 1 U of U campus shuttle that has been changed over to all electric with wireless charging (charging at shuttle stops). I remember reading that UTA was watching it closely as it could further reduce their fuel costs if it was successful.
The technology for the shuttle charging was developed locally if I recall.
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