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STOCK SUMMARY
Nasdaq 2778.790.00
S&P 500 1295.22-9.64
Armstrong 43.330.00
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Harley-Davidson "45.27
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Rite Aid 1.210.00
Unilife 4.010.00
Weis Markets Inc"44.63
 
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October 21. 2011 10:14AM

Electric vehicles energize Central Pa. business

By Jim T. Ryan

The electric vehicle has come of age and is generating business in the midstate.
The region's first electric vehicle charging station opened in June at Hershey's Chocolate World in Derry Township, Dauphin County. The plug-in electric power — or PEP — units were installed by Lebanon County-based Energy Systems & Installation Inc. Photo/Amy Spangler


With about 20 different electric vehicles, or EVs, set to hit the market in 2012 and sales growing, Central Pennsylvania companies said they see opportunities to secure new business today by embracing the automotive future.

Hotels, tourist destinations, engineers and manufacturers all see potential in EVs and the infrastructure to keep the vehicles powered up.

The most recent midstate EV developments include opened and planned charging stations at area hospitality and tourism businesses, such as Hershey's Chocolate World in Dauphin County and the Lancaster Arts Hotel.

The boutique hotel will install charging stations in November, general manager Darcy Novello said. The stations are an amenity for guests but present two business opportunities, she said. First, the hotel will receive a percentage of electricity sales from the charging stations to be operated by Florida-based Car Charging Inc.

Second, there's the potential the charging stations could attract guests, she said.

"If people are searching for a charging station and they see a hotel with one, maybe they'll stay here if they're travelling," Novello said.

Lancaster Arts Hotel, which boasts a varied collection of arts on the walls and built into the hotel's style, always is looking for new ways to attract guests and give them a fresh experience, she said. EV charging stations help capture other segments of the population, too, she said.

"There are a lot of people out there who prefer staying in a green hotel," Novello said.

Altoona-based Sheetz Inc. is installing charging stations at five of its Pennsylvania convenience stores, including three in Cumberland, Lancaster and York counties. The company worked with the state Department of Environmental Protection to install the stations, said Fred McConnell, Sheetz's director of brand development.

"It goes back to the customer," McConnell said. "We feel there's some customer demand for this. And historically, we've always done what's right for the customers."

Sheetz is working with California-based 350Green, which will install and manage the charging stations. Sheetz will get a share of the charging revenue, McConnell said. Sheetz also expects to gain some inside sales at its stores from customers who wait for their cars to charge, he said. Twenty-five minutes gets a battery to about 80 percent of
capacity, depending on the EV model.

"When the demand increases, we'll be at the front of the pack," McConnell said.

Companies working in electrical contracting, such as Lebanon County-based Energy Systems & Installation Inc., will see a business boost from charging stations. ESI installed the solar canopy and charging stations at Hershey's Chocolate World in Derry Township.

"This dovetails with our commitment to renewable energy and our core business in electrical engineering," said Mike Drei, ESI's director of marketing.

The company has focused a lot of its work over the years on the installation of solar arrays for homes and businesses. But as some of that work has slowed, charging station engineering and installation offered another market for its services, he said.

Any place that attracts people for hours at a time is a prime location for EV charging stations, Drei said. Offices, attractions, resorts, hotels and apartment complexes are great for EV stations, he said.

ESI soon will begin work on a project to add EV stations to four apartment buildings in the Lancaster area, he said. Drei declined to name the company renovating the apartments or where specifically they are.

"We all think it's a significant business opportunity," he said.

The prospects will grow as new EV models come onto the market in higher and lower price ranges, he said. The way companies are designing EVs gives the cars greater appeal to a wider audience, he said.

Chevy Volt, an extended-range EV, uses either a plug or a gasoline engine to charge its battery, giving the consumer more driving options. The Volt's battery range is 35 miles, but its gas engine gets 40 miles per gallon on the highway, according to Chevy. The Nissan Leaf is an all-electric model with a range of 100 miles per charge, according to Nissan.

Midstate dealerships have yet to receive the Leaf for sale, said Abdul Moosa, general manager of Brenner Nissan on the Carlisle Pike in Cumberland County. The Leaf is expected to hit this area by February, he said. However, once the technicians and charging stations are here, sales could be significant, he said.

"At the Nissan meeting (last week), the California dealers were saying they've seen good sales," Moosa said. "Some of them are selling 30 or 40 vehicles a month. That's pretty good volume; but then again that's California, and it's a different market."

Tesla Motor Corp. makes higher-end electric sedans and sports cars that get between 245 and 300 miles per battery charge, according to the company's website. Most other major automakers have plug-in or extended range EVs planned for 2012, including Ford's plug-in Focus and Toyota's plug-in Prius, according to the companies.

There were more than 9,600 EVs on the road at the end of August, according to the Electric Drive Transportation Association, a Washington, D.C.-based trade group representing automakers and technology companies. Extended-range sales have been steady and plug-in sales have exploded since April, according to the association.

Tax credits are helping, said Brian Wynne, the association's president. EVs are the only cars eligible for federal credits. Depending on the battery size, vehicle owners can get up to $7,500, and the credits won't end until each manufacturer has sold at least 200,000 EVs, he said.

The EV market expansion also will benefit manufacturers, Wynne said. The car companies make the vehicles, but someone else has to make the batteries, plastics, motors and electronic components.

"This is a great way to expand jobs," Wynne said.

Central Pennsylvania doesn't have auto manufacturing facilities, but it does have companies that make parts to go into autos, including EVs.

Richard W. Dennis, president of York County-based manufacturer Die-Tech Inc., has been watching automaker trends for decades. Every year, electronics and electrical components increase per vehicle, he said. EVs will bolster that trend.

That means business for Die-Tech and similar companies that make the small metal components for electrical connectors. Die-Tech makes the sweeps, or metal brushes running along a sensor panel, that make power gear shifts and steering possible in cars, trucks, jets and other vehicles. It also makes the metal stampings for connectors.

Today, automotive parts are about 10 percent of Fairview Township-based Die-Tech's work, Dennis said. By the end of 2012, he expects it to be 20 percent, he said.

"(Electric cars are) just part of the whole automotive sector growth in connectors," he said. "So it's definitely an opportunity for us, or other companies working in this area."


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