New electric buses to save an estimated $900K each in lifecycle costs: Memo

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The City of Calgary will save nearly $1 million per bus over the expected 16-year life of new electric buses over their diesel counterparts, according to a city memo.

Councillors were provided the information in-camera on Nov. 27, and the memo was released publicly on Nov. 28 at the request of Mayor Jeromy Farkas.

The memo responds to a series of questions on the lifecycle cost comparison between electric buses and diesel buses. In August, the City of Calgary announced that it would be adding 120 new electric buses by 2027, in a $450 million plan to replace aging diesel buses.

According to the City of Calgary, the lifecycle operating and maintenance cost of one of the new electric buses is approximately $815,000 over 16 years.

“This includes electricity, maintenance, and two battery replacement costs. The battery replacement is estimated at $300,000 per bus,” the memo reads.

In comparison, the cost of one diesel bus over the same 16-year timeframe is estimated at $1.71 million. That includes fuel, maintenance, along with engine and transmission replacement.

Part of the financing for the project comes from $123 million in Canada Infrastructure Bank cash. With the $900,000 in savings per bus, the City will repay that loan.

“As (operations and maintenance) savings are realized, it allows us to pay off our Canada Infrastructure Bank (CIB) loan,” the memo reads.

The memo indicates that two battery replacements are required throughout the life of the battery-powered buses. Each battery costs $150,000, according to the City of Calgary.

The question of having retrofitted garages for electric buses, Calgary Transit said that it’s recommended to have a 1:1 ratio. There are 128 charging locations planned, with 88 at the Spring Garden garage location and 40 for the Anderson station bus barn.

The memo does not include the cost that council had heard before about the potential additional impact to pavement rehabilitation.

Mayor Farkas said, during questions of administration on transit and infrastructure, he didn’t think this information should have been held from the public to begin with.

“I just want to insert my commentary because I don’t think it should be confidential, and at the end of this council agenda, I actually have an administrative inquiry in writing asking for a public response to the same questions in the memo,” he said.  

“So, all that to say is, stay tuned. I think the number really should be public.”

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