Fleet Cost Allocation Process
NV Energy is looking at updating the method in which vehicle costs are allocated to all the users. We are asking other fleets (in particular investor owned utilities) to identify their allocation process in hopes of adopting best practices. Some of the areas we are considering is charging most fixed costs (PM maintenance, lease/depreciation, licensing, etc.) costs directly to using department. We are also considering direct charging fuel to each department through an allocation process.
Here is NV Energy’s allocation process.
NV Energy establishes a budget for the total 184 spend. We then divide this budget by all our vehicles to establish a “monthly rate” for each vehicle, trailer, and equipment. This rate is charged to each department on the basis of 160 hours a month. The cost is charged to each department through an allocation process that is based on the department’s labor distribution. There are two methods in which this is done. If a vehicle(s) is assigned to an individual, the cost of THAT vehicle is divided up amongst all the charge accounts the employee charges his time to, 100%. All the remaining vehicles that are not assigned to an individual, the total of all the vehicles costs are divided amount the entire departments labor distribution and allocated out to all the charge accounts the whole department charges to. This is for all productive time codes. Most non-productive time codes are excluded from getting vehicle charges, such as sick leave, vacation, safety meetings, etc.