Assessing the Feasibility of Collaborative Utility - Municipal Tree Removal and Replanting    (View PDF)

Kevin Eckert and Peter Simpson

Abstract: In June 1993, Newport Electric Company and the City of Newport, Rhode Island collaborated to complete a tree removal and replanting pilot project. This pilot project was initiated to address the situation that large city-owned trees in Newport are potential hazards to the delivery of safe and reliable electric service, and are costly to trim for adequate clearance. The two primary purposes of this project were: 1) to examine the operational feasibility of a collaborative tree removal and replanting project between the City of Newport and Newport Electric Company; and 2) to cost justify participation by Newport Electric in a tree removal and replanting project. Net Present Value (NPV) is offered as a defensible model for determining cost justified participation by the utility because this method for determining financial worthiness is consistent with other business analyzes conducted within the electric utility industry. If considered over the short-term, participation in a tree removal and replanting project cannot be cost justified, because a financial break-even point will not be realized. This project is cost effective when evaluated over the long-term, because the expense of trimming each tree by the utility is ongoing for several cycles. The willingness of the municipality to share the costs was critical in the decision of the utility to participate.

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https://doi.org/10.48044/jauf.1994.034