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Title: Fleet Cost Allocation
Author: Robert Bucklew
Source: American Gas Association 1985
Year Published: 1985
Abstract: Metropolitan Edison (Met-Ed) serves over 370,000 customers in eastern and south-central Pennsylvania. It includes over 3,200 square miles in its service area and, with sister companies Pennsylvania Electric (PENELEC) and Jersey Central Power & Light (JCP&L), serves almost half of the area of New Jersey and Pennsylvania combined. These three companies, along with GPU Service and its nuclear operating company, comprise the General Public Utilities (GPU) system. The Met-Ed transportation fleet consists of approximately 200 passenger cars, 270 light trucks, 260 heavy trucks, as well as quantities of cranes, trenchers, backhoes, trailers, and pole dinkies. The transportation department has 64 employees decentralized in four operating divisions. Expenses for 1984 were nearly 7 million dollars. I am going to make two assumptions about you and your utility industry. First, transportation is not a significant part of your companys operating expense. At Met-Ed, that 7M annual transportation expense represents only slightly more than 1 percent of the companys S562M in operating, purchased power, and fuel expenses. My second assumption is that your companys transportation expense is important to you.

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