Hybrid vehicles help firms cut energy costs

ROSWELL, Ga. - As fuel prices have reached record highs, gas-electric hybrid cars have made it to the consumer mainstream. But using hybrids in commercial fleets is new.

For many companies, this new technology may be something of a gamble. Still, some big companies are investing in hybrids, and reducing fuel costs at the same time. One of those is UPS.

It takes a lot of fuel to move 15 million packages a day.

"We spent over $2.1 billion on fuel last year," said Mike Herr, the shipping giant's vice president of environmental affairs. "That equates to about 4.8 percent of our operating revenue expenditure."

That's one big reason UPS has been on a 20-year quest to cut that cost. This June, UPS turns a critical corner, when 50 new hybrid electric vehicles, or HEV's, hit the road.

For UPS and other fleets that make frequent stops or get stuck in traffic, HEV's may just be the Holy Grail. That's because each time an HEV brakes or idles, it generates power -- which cuts that vehicle's fuel consumption. That means UPS's new HEV's will use 35 percent less diesel.

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