The Challenge: Accurate Fleet Data and Industry Comparisons

In the Utility Industry, companies face oversight from public service commissions or state governance. When setting their service rates, they need to justify their costs, such as vehicle replacements and technician staffing, with hard data to demonstrate operational efficiency and cost-effectiveness. For Central Hudson, an Electric and Gas Utility with over 300,000 customers, aligning their fleet operations strategy with regulatory requirements, and delivering the business case for their future investments was a key goal. They needed to ensure that their expenditures were accurate, transparent, justifiable, and in line with the expectations of both regulators and the industry.

The Solution: Utilimarc Benchmarking

To address this challenge, Central Hudson joined Utilimarc’s annual Benchmark Program, which provides accurate and transparent insights into yearly maintenance performance, equipment utilization, and forecasts for future vehicle and personnel needs.

By leveraging Utilimarc’s Benchmarking Solution, the company's fleet management team was able to deliver a data-driven foundation for regulators, demonstrating that their costs were justified and aligned with peer and industry standards.

James, a fleet supervisor at Central Hudson, emphasized how crucial benchmarking data is in their decision-making:

"Benchmarking allows us to present the facts—how long a vehicle lasts and why we need to make capital investments. It’s not just about purchasing trucks. It’s about having the necessary data to justify these decisions."

Results: Operational Improvements and Informed Decisions

After implementing Utilimarc’s solution, Central Hudson saw immediate and impactful results:

1. Data-Backed Justifications for Rate Cases
Through Utilimarc’s Benchmarking data, Central Hudson was better positioned to advocate for necessary budget and resource allocation. Benchmarking against industry standards also gave them strong evidence to support their rate case requests, simplifying the approval process and ensuring preparedness for future fleet needs.

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“When we applied for the rate case, having the data showing what our peers are doing helped justify our position.” James noted.

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2. Efficiency and Streamlined Processes
Utilimarc’s service streamlined the process of data collection, making it easy for the utility to access and analyze the necessary information. The accuracy and transparency of the data also helped the fleet management team focus on high-level strategic decisions instead of intensive data collection, validation, and reporting efforts.

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“They manage the data for us, and we receive exactly what we need. We’re all busy, and we don’t have time for difficult processes. Utilimarc makes it easy, and that’s crucial for us.” said James.

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3. Transparent Comparisons with Industry Standards
The transparency of Utilimarc’s benchmarking data further validated that the utility’s vehicle replacement cycle was consistent with other utilities, strengthening their position with regulators. The use of accurate and industry-aligned data gave their case more credibility. Additional benefits include:

4. Accurate TCO Calculations: Streamlined and accurate data provided a better way to confidently calculate their fleet’s true TCO, leading to better financial decision-making.

5. Enhanced Lifecycle Planning: Reliable data from a supportive partner allowed for accurate predictions of when vehicles needed to be replaced, helping to avoid costly downtime.

6. Internal and External Benchmarking: With validated data, Central Hudson can easily compare fleet performance across departments and against industry benchmarks, providing valuable insights for strategic planning.

“Utilimarc’s Benchmarking solution and their support helped us to tackle our fleet data challenges head-on. Their team was there every step of the way, and now we have the accurate information we need to manage costs, plan vehicle replacements, and benchmark our fleet’s performance. It’s been a partnership that’s delivered real, measurable results.”  -Fleet Supervisor, Central Hudson

7. Optimized Replacement and Lifecycle:

As part of their initiative to enhance fleet management, the utility company partnered with Utilimarc to improve their tracking of vehicle lifecycle costs. This collaboration resulted in significant advancements in the precision of their cost assessments.

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James shared: "Having an accurate understanding of the lifecycle cost for each vehicle is crucial. Our recent analysis revealed new opportunities to improve how we track these expenses, enabling us to conduct more precise evaluations. This has been a major takeaway for us.

With more accurate cost data, the utility is now able to make more informed decisions on whether to extend the use of vehicles or replace them earlier, leading to more efficient fleet management and strategic decision-making.

A Trusted Partner for Growth

Utilimarc has become an essential extension of Central Hudson’s fleet management team. With ongoing support and reliable data from Utilimarc’s experts, Central Hudson can plan for future growth with confidence, aligning its operational strategy with both current needs and long-term sustainability goals.

How Benchmarking Helps Fleet Leaders

Utilimarc’s Benchmarking Solution helps fleet managers make smarter decisions by comparing their data to industry standards. By examining key metrics like financial performance, asset use, maintenance costs, and staffing levels, fleet managers can stay on top of trends, cut costs, and improve efficiency. Through our wide range of industry data, we can provide you with relevant fleet comparisons to help you take meaningful action to improve your fleet operations.

Ready to improve your fleet operations? Talk to a fleet benchmarking expert.

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