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Fixed Price Fuel Program Saves Money for
Fleet - Automotive Fleet
Magazine
ATLANTA - Alabama Power
Co. and Georgia Power
Co., which are subsidiaries of The Southern Company, have enrolled in a fixed-priced fuel program that has allowed them to lock in the second largest and most volatile cost to their
fleet.
The program offers fleets an option of paying one fixed price for a certain number of gallons of fuel over a certain period of time. This enables the company to accurately project, with 100% confidence, their fuel costs for the coming
year.
"We can do this for any fleet that has ratable fuel use, which means they have a predictable amount of fuel usage each month,"
Livia Whisenhunt, President/CEO of PS
Energy Group, said in an interview with Automotive Fleet. The companies ended up saving about $600,000 because of advantageous timing. PS Energy Group Inc., Alabama Power, and Georgia Power studied historical fuel pricing information and locked both companies in at historically relevant levels. The main benefit of the program to fleet managers is gaining control of a previously uncontrollable cost that is a substantial portion of their
budget.
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Whisenhunt said Alabama Power and Georgia Power saved about 15 cents per gallon on average throughout the year, but as gas prices got higher late in the year, the companies were saving 34 cents per gallon on unleaded, and 37 cents per gallon on
diesel.
About PS Energy Group, Inc.
Founded in 1985, PS Energy Group, Inc.
is a privately-owned, Atlanta-based company that offers business, industry and government a full range of energy and transportation solutions. The company is among the nation's top 50 diversity-owned businesses and helps its customers meet their energy needs by providing natural gas, transportation fuels, emergency fueling and fleet management services, including
etrac™, a Global Positioning System product used for asset monitoring and vehicle tracking.
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