Erie Thames Powerlines: The Hybrid Truck Decision
(2 pages of text)
Erie Thames Powerlines, an electricity distributor in Southwestern Ontario, needed to determine the suitability of the company acquiring a hybrid truck as opposed to a conventional diesel utility truck. As of early July 2016, the truck suppliers (for both hybrid and diesel trucks) and the internal accounting department had provided substantial information with which to conduct a thorough analysis. The company also wanted to include some qualitative aspects, such as the reduction of noise pollution and the positive contributions of hybrid trucks both to the company’s image and to its promotion of energy efficiency. The firm needed to build an appropriate business analysis that included both qualitative and quantitative elements to support a recommendation to the utility company’s board of directors in August 2016.
This case is recommended for use in an environmental management or economic project evaluation course, or in an introductory accounting course for a class in cash flow analysis. The case’s main intent is to introduce students to a cash flow analysis that integrates a carbon footprint and other qualitative issues in its decision-making.
Canada, Small, 2016
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