Economic Benefits of Flexible Fuel
Plug-Ins

Spend Less Time and Money at the Pump

Plug-in hybrid vehicles can range from 20 to 60 miles without the use of gasoline after being charged in a standard electrical outlet. That means tens of millions of motorists could make their daily commute using little, if any, gasoline. A motorist driving 9,000 annual gasoline-free miles and 3,000 using gasoline would get 100 mpg (based on vehicles that get 25 mpg).

These savings would be even more dramatic if plug-in technology is combined with already-existing flexible fuel technology.

Cost of Electric Fuel

Charging the battery each night would cost less than $1.00 at current rates. PHEVs outfitted with a battery pack providing a 40-mile electric range could power, using the all-electric mode, more than 60% of the total annual miles traveled by the average American driver.

Savings for Business

Businesses could achieve considerable savings on fuel costs. A business fleet vehicle could drive 6,250 miles per year (per vehicle) without the purchase of any gasoline (calculated on 25 gasoline-free miles per day, 50 weeks per year, and 5 days per week). Again, these savings would increase dramatically if the plug-in was also a flexible fuel vehicle.

Initial Cost Worth Long-term Savings

PHEVs would result in significant fuel savings for most motorists. The initial cost of the plug-in vehicle, however, would be more than a conventional car or one of the existing mass-produced hybrids. However, a 2004 study by the Electric Power Research Institute (EPRI) found that plug-in hybrids can achieve life cycle costs parity with conventional gasoline vehicles – meaning that over the life of the car the cost will be equal or less despite the initial higher cost. The study calculated gasoline price as $1.75/gallon.

Research investment and mass manufacturing would lead to a lower retail cost of PHEVs, as has been the case in numerous industries throughout history— such as computers.

Flexible fuel technology has been on the market since 1996 and costs approximately $100 more per vehicle.

Rebates and Incentives Will Help

To help offset the initial cost of a PHEV, The City of Austin and its public utility Austin Energy are already addressing the cost difference by making $1 million in rebates available for Austin Energy customers when automakers begin manufacturing PHEVs. Austin Energy is encouraging other utilities to do the same. More about Incentives >>

Additionally, bipartisan bills pending in the U.S. Senate and House would offer rebates and manufacturing incentives to help close the price gap.