Document OEXZjLvjRn5qajzyLYD8exB8e

Z.A t *fl Lead Industries Association, Inc. I 292 Madison Avenue New York, N. Y. 10017 Telephone: (212) 679-6020 Sent to: Simon D. Strauss John R. Englehorn July 16, 1969 Robert Hendricks Wm. G. Hewitt SUBJECT: W. Allen Taft, Jr.^-n-t- Henry J. Whitson v INDUSTRIAL BATTERIES FOR OFF-THE-ROAD ELECTRICAL VEHICLES_________ To Members of Executive Committee of LIA Board of Directors Dear Mr. With special emphasis started in 1967, including the creation of LIA's most recent film, "Lift Better Electrically," we have been devoting a substantial amount of money (as authorized) and more than the full time and travel expense of LIA's Mr. Connel Baker to the creation of an atmosphere which would result in a greater industrial sales effort by the electric utility companies of the country on behalf of battery powered industrial vehicles. From the beginning of this campaign - film, literature, rodeos, seminars, etc. - it has been our objective to inspire the utility companies to instruct their industrial salesmen to use our promotional materials and ideas and to sell harder in the specific industrial "in plant" field of battery powered vehicles. We have made frequent contacts with the Edison Electric Institute, who welcomed the LIA effort, but originally took no step to support it actively among their membership. The LIA's program has made progress. Ninety prints of the film have been sold, mostly to individual companies. At least four public utility companies are known to have vigorous sales campaigns on an annual basis as we wish. Another 35 or 40 utilities have participated on the basis of a one time promotional effort (rodeos etc.) but have not adopted sustained programs. The Edison Electric Institute has now become interested and proposes action as detailed in the attachment which recommends, as a first step, a professional sampling survey by a well qualified firm, Stevenson Jordan and Harrison, here in New York, to establish clearly the magniture of the potential market according to various broad geographical areas and SIC industry classification numbers. LIAC2143 N 3635 To Members of Executive Committee of LIA Board of Directors 2- - July 16, 1969 The cost of this survey will be $18,650 and EEI has asked the LIA to contribute one half of this amount to cover Phase I. of a two phase program. EEI believes that the existence of the data to be developed by Phase I can be used to inspire top utility management across the country to increase their effort on behalf of the market indicated substantially. Stevenson Jordan and Harrison believe that the second phase of the total program, namely to develop specific details in each utility's geographic area will be undertaken by the utility companies themselves, at their expense, with no more from LIA. Further, EEI will press for such action by the utilities when the data from Phase I is at hand. In view of the probable effectiveness of EEI on their own members, the LIA recommends that the suggested contribution of $9,325 be authorized. It is available in existing funds without special assessment - although it will reduce the calculated operating reserves at year end. This matter has been discussed by Borcina and Kimberley, with the Chairman of the Industry Development Committee, J. S. Smart, Jr. and President Strauss who recommend that a decision be reached by letter ballot to and from the Executive Committee of the Board. May we have your approval or comment of this expenditure by proper indication on the attached ballot. o JLK:so Enclosures: S J & H Proposal of 5/8 Supplement " 6/20 EEI Approval " 5/29 Ballot Ll* To Executive Committee of the LIA Board of Directors July 16, 1969 LETTER BALLOT Study of. Potential on Off-theRoad Electric Vehicles LETTER BALLOT Please return to: Mr. J. L. Kimberley Executive Vice President Lead Industries Association, 292 Madison Avenue New York, N.Y. 10017 r Inc. I favor (oppose) the proposed study by Stevenson, Jordan & Harrison on off-the-road electric vehicles at a total cost of $18,650, with LIA and Edison Electric Institute sharing the cost equally. COMPANY NAME DATE BY LIAC2145 N 3635.01 *:.<* ** ^ *'** -, '~ -V> >( .-^p, _**** KaS'-iXSi^l^' f- " 'J'"*'' ' ' ,.*..Av *' " ... * ,,* ,.- . ^-.. * -; -4'-' '-* . *? > - % -.* TM..-. .... ,v> - s.w -, % ;. '. '^f^..'v - * - J| A?-!*'"' *; ^ ' ` :! ' r ;. - ; -. r :yx>}^yp.k^.^ ` j < * - , /*- -v ' - ^ `Jv-:. ` *!. > .;.>, . T' ": C.': r .- <%-**:: ;?* .*..' . \* ;* - - ' STEVENSON, JORDAN & 'HARfelSON > XAXAeBXBK* oox*ux,taict, -ivT :: '- ' THX VAX AX BTUXSXXflt S00 VABX AVXXUS, *XW XOXX. XI *001* . ^ '\ ">* * . . s>'~ .... .; " **. x f- ;* . -S' *V".'j& *+ **-;-\ v '." ` \'j. c`' n* Kt&auy V May 8/ 1969 :.. v \ Mr. H.J. Young . -V >-- Edison Electric Institute 750 Third Avenue < - ,, ' New York, New York 10017 v \ *, ' . jr* ^ *V-' RE: Proposed Study of Load Potential in Off-the-Road Electric Vehicles . ? Dear Mr. Youngs The following is our formal proposal for a study of ' electric utility load potential in off-the-road vehicle applications. I. BACKGROUND OF THE PROBLEM - / . . * * . *.' Off-the-road electric vehicles which are now in use such as lift trucks, security vehicles, delivery * * ,, *; vehicles and golf carts - offer considerable load , ' . building potential to the .electric utility industry. 5^ An electric lift truck,* for example^ consumes as ,, much electricity annually as a total electric home. In addition, because battery operated vehicles are normally charged at night when demand is at .its lowest, they are exceptionally profitable loads. Some utilities have recognized the sales and prO^itls ^ potential in off-the-road vehicle applications and have promoted them vigorously, if intermittently. The majority of electric utility companies, however, have not made a strong load building effort in this area. The reason for this situation, it appears, is that the top manage- ments of electric-utilities as a whole are not.sufficiently aware of: .- - J. v - ... V'--; ' V- ; - .1; ^ ; a) the lbad potential in each type of off- v - - -- the-road electric vehicles in the total ;* United :States *.> - " >>. . - : b) the load potential in these applications within each utility's own service area;' ' N 3635.02 / *. > *' 7 */fi*.--v'V V. ? . -: r, . Uii.-i*; _.. - ,, .- ; .a 7- \y.. Y * 7s -- > * -I ' f' . V. -- T<<> *- *K :w ' ,. >... i, t *. 'A ' Hr. a.J.-^oung 4- t * i. L *' ' '3MLT. . /*. : V~>. \ v ' . May 8, 1969 The specific steps that would toe involved`in -each Phase are outlined in g~ reater det*ail bt e, l. ow.*".1 *. ^ .r ' .. *. \V v. PHASE ONE j- ` - ! --------!----. ' ^ ' *" - r i' -v v ;. *.' A. Develop reliable estimates of total U.S. potential for each class of off-the-road electric vehicle by.___ - means of personal interviews among appropriate vehicle manufacturers, trade associations and trade publications. ' ~ v '* ' -" B. Based on information developed in the preparation of this proposal, we estimate that 12 major in dustry categories represent over 75 percent of vehicle usage. On the basis of interviews among vehicle manufacturers, trade associations and trade publications, we would determine those threedigit S.I.C. categories which comprise the major potential categories withirf those industries. -- C. Conduct a telephone survey among the three-digit S.I.C. categories selected in Step B above to provide reliable, up-to-date information on current and prospective usage of electric off-the-road vehicles, and a basis of projecting this vehicle usage to load potential within specific plant types =(i.e., 3 digit S.I.C. definition) of 20 or more . employees in size. . This survey will be accomplished by conducting 1,000 complete telephone interviews, selected on a statistically projectable basis through out the United States. .. . - * ~ D. To supplement the vehicle utilization data provided by the telephone interviews and to provide more insight into the attitudes of prospective users of electric off-the-road vehicles, we shall also conduct in-depth interviews among approximately 50 off-the- road vehicle users. s . - . ' ' At the conclusion of Phase One, we would be able to estimate 1) total U.S. usage of off-the-road vehicles, 2) the percentage of total usage which is now electric, and 3) the total annual load for each class of vehicle on an industry-by-industry basis among plants of 20 or more employees in size within the major industry classifications studied. j LIAC214*; C '*.}' .*%/ ` t-': v %.**&**+**&**- ^ ^ ^^ sxxr'trryf^jf ' -'**'* '--_ -axs*' v v-..-w. V. ' K"' s4 >, * :"v . .. (.-sJ'*<.**VA . ;; ..i.J~. *,*<r ..*-?' 'V' " * 1i <*\\ V* ^ ,-X r. " '**- ' *** > f '* */.;, A- .<5 i - ' ',yi / t i* Nn*v*w - ' A t. *' Mr. H.J, Young fi. PHASE TWO *V" -r - 4? > .jry-i':rv.:-f * *. J **.**/.* -*.; -v"' ' " ' * * ^ ' ;'*-./ -u J^ - * ^ * ^ < r* .wV ^cv -5-; -* *<* ;; .4?*; - : May D,\1969 , tr - - .... ' ' ,v , This phase of the study program consists of the development of market potential estimates for Electric utilities on a service area-by-service area basis.* Using the findings of Phase One ve can proceed, at moderate cost, to develop ' . , estimates of load potential in electric off-the-road ve-/ hide applications for any .utility which is interested in obtaining this Information; Any'need to develop ;'additional local plant usage data relating to vehicle usage could be accomplished by/utility personnel ^uhderV' our guidance. rc l * ">. - i:? '-T v r-i. *V' / . ' < *f - *' . f-* ? ?,: T ' *- - *.* > y "#-. -*n " *4 The opportunity .to Cooperate in this* phase of the project would be offered to individual utilities. All additional information developed in this phase can easily "be intro- ' duced by EEI back .into the statistical base on which Phase One estimates are developed." In this way the statistical level of confidence'will be increased as the program* grows. - '-'j*- -viv- -.*' ; - " V-'- ~f *r>4 * ' ' v. ESTIMATED COSTS AND TIMING OF THE PROGRAM , PHASE ONE V ./ ^ ' i ,/ ' ' /' ' "T * 'iw f" ** * Based on our detailed'project planning,'v the Cost* of'Phase One of the\study program. Including fees and out-of-pocket' expenses, will total $186S0v>r .This includes all computer programming and data processing costa. Va estimate that we can complete Phase (hie of the program vithin three,, to four months from time * of authorization. vrVV^ * .V f. ** PHASE TWO , ' V-/ ^' i , t / /". 4 ; -./ ... .. *4 V.J '* \. - The charges*for developing estimates of load potential in off-the-road vehicle applications/for utilities on an individual basis will vary depending upon the size** of. the ' company and upon the type and quantity of data the company* can make available on the breakdowns of its industrial and commercial markets by county/'S.i.C* classes, and employ ment size classes. JWe estimate that charges would be in the range of $1,200 to $1,600 .per utility-for the'majority of * utilities. Travel arid related-expenses would.be billed, extra, but at .Actual-coatV ^ `* }-*?/ ' ,;t .. ; V f ^V- * M.* v" - V > LI&C 215C * -- 1. Assuming that you are in agreement with us on our >' approach to the problem, the scopp of the work.and the;?/ costs of the project, please sign;one copy of this letter in the space indicated -and return it to us as our authori zation to proceed in your behalf. r / * . t v r * ^ ; * . .* .4 ' 4 Cordially,*. - . v-V-' :% .**.*.; v.*-i : v. \ " STEVENSON, JORDAN & HARRISON - V . '' %' MANAGEMENT CONSULTANTS, INCy. - V . . ,v* ' s >V;; r-\ V V:C': " . ELK: rro *; ' ' . / ^ -------: >. ' Edward L. Kaufman v - Director of Techno-Economic Programs * % 4* . v: - 1 For Edison Electric Institute >- A ; r\ :V - Date: ' ^- i \ J X *< t `t "9* ~:* <l " * ' * V '> LIAC2151 STEVBNSONi JORDAN & HARRISON MAKA6)tkIlT.OOKlItTAKT. I. < * XU SAK AX BUIX.BXNO. tOO YAfcK AVZNUX. NSW TOS& X.T. *0017 ' June 20, ;1969.` . .<*. TV ' -v, ' <V Hr. David M. Borcina . Secretary-Treasurer Lead Industries Association, Inc. 292 Madison Avenue s New York, N.Y. 10017' ; *' Dear Dave: ; .v (nXXUuur BU T-1MO V . A x :* In response to your letter of June 11th, this letter will constitute an amendment to our proposal dated May 8, 1969 to: ^ Mr. H. J. Young Edison Electric Institute 750 Third Avenue New York, N.Y. 10017 Re: Proposed Study of Load Potential in Off-the-Road Electric Vehicles - Specifically, the following information will be developed in this study for those SIC categories selected for study: 1. Number of off-the-road vehicles 2. Number of (1) above that are electric 3. Number of| (1) above that are gas 4. Number of (3) above that can be converted from gas to electric ~ The above information will be developed in addition to the data outlined in the May 8 proposal on page 4. LI AC21 52 N 3635.03 * > r.,, -- r * i\ `I'Y * Vf * \* . ' *. ' ^ *-'** . - . . . '-'. *, 7'<* . - . >. < # - .-. ' - < -~ <'*.* - ..-, , - - -v. * '* #\ *5 ^. r-. - _****- r-;. .*. ' w-,**'*v* 2) . . '^ *r.- ~- ' . Ht. David Ml Borcina^ ^i/jPa^gV.l , v"* v June 20, 1969. '* -. , f Jf- ** T .? . ?. > ,,. t. *, -i~ -. .,>-.*>**'****& VS - * .-? --;' *.* "?:<. . rr? ''*V-S`' . ->- ' * \ -kt*'- * -. L% jr ' /* .. - r'` * . '* j , ' *. *!'? , ^ *. We trust the~aftove will clarify this area of concern. However, if you have any; additional .questions, please feel free to call me.'X.* - :.. .Sincerely your8,- *.' *- * ` STEVENSON,' JORDAN & HARRISON' MANAGEMENT CONSULTANTS. INC. EHJ: fms E. H. Jube President CC: Mr. H. J. Young, Edison Electric Institute Mr. J. L. Kimberley, Lead Industries Association 5 i I A C ? 15 ? ; 'if:'*- > i ~*mJF VP1 >I * * ' > ^ *2.. EDISON ELECTRIC INSTITUTE *750 THIRD AVINUt NEW YORK 10017 YUfcon B tlOO May 29. 1969 Mr David Borcina, Secretary Lead Industries Association 292 Madison Avenue New York, New York Dear Dave By this time you will have had a chance to read the proposal from Stevenson, Jordan it Harrison. We think it meets our requirements very well. I hope you agree. We would like to go ahead with this project as promptly as possible and as you know our thinking has been in terms of sharing the cost of Phase I on a fifty-fifty basis with the Lead Industries Association. We would undertake to interest indivi dual utility companies in Phase 2 of the program. Could you let me know if you think Lead I ndusries Association would be willing to join us in this effort, and if so when we could get started. LIAT2154 N 3635.04