Saskatoon could save $66M if it embraced all-electric bus fleet: report

Edmonton's first battery-electric bus rolled into service on Tuesday. Aug. 4, 2020. (Jay Rosove/CTV News Edmonton)

Saskatoon Transit plans to buy two electric buses instead of four diesel ones, citing massively lower operational costs.

"Although it would be attractive in the short term to purchase four diesel buses versus two BEBs (Battery Electric Buses) in 2022 to deal with the immediate fleet needs, the Administration believes that the move to BEBs for both financial and environmental reasons will be difficult no matter when the decision is made," said an administration report submitted to Thursday's transit committee meeting.

"There will always be limited funds and a high degree of urgency for fleet replacement. Considering all factors, the Administration believes that

moving to BEBs now makes sense because this investment will lower the long-term costs to the City and provide for better performance in cold weather.

"This will advance the timeline that the City realizes the financial benefits of the move to electrification, which will in turn improve the City’s ability to keep up with fleet replacement."

The two new electric buses could be delivered in mid-2023 and would be funded from this year's $2.64 million transit fleet replacement budget.

The report comes the week that Saskatoon Transit had to cancel dozens of routes due to mechanical issues, which director Jim McDonald attributed to a shrinking and aging fleet combined with a parts shortage and the extreme cold.

From Oct. 5, 2020 to Sept. 30, 2021, Saskatoon Transit leased an electric bus and tested how it performed in all four seasons, learn about its maintenance and operation and test it on a day-to-day basis.

The report said that while the capital cost of purchasing electric versus diesel buses is higher — $1.2 million compared to $660,000 — electric buses have much lower operating costs:

• The annual maintenance costs of a diesel bus versus an electric bus, driving 50,000 km/year, are expected to be $43,000 and $9,000 respectively.
• When driving 50,000 km/year, fuel costs are estimated to be $29,100 for diesel and $6,990 for electric.

"With these operational savings, the BEB becomes more financially attractive over time and at the 10-year point of an 18-year life cycle, the BEB begins to show savings, compared to the equivalent life cycle of a diesel bus," the report said.

In addition, adding a diesel-powered coolant heater to provide cabin heating would slightly increase the cost of an electric bus but would double its range in the coldest months.

"Even with the significantly higher upfront capital cost for the BEB, the analysis shows that approximately $470,000 can be saved over the total life of the bus, a savings of 24 per cent. With that number applied to a fleet with 140 buses, it is close to $66 million over the life of the fleet, or approximately $3.6 million annually," the report said.

However, it noted those savings will only be realized once the fleet has been completely converted.

The current Civic Operations Centre can charge about 30 electric buses and further analysis is required to determine the requirements to charge the entire fleet, the report said.

It would take an annual capital fleet replacement budget of $12 million to convert the entire fleet to electric buses, the report said.

Saskatoon Transit is looking into applying for the capital funding streams of the federal Zero Emission Transit Fund, the report said.