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AT & T To Add 15,000 Alternative-Fuel Vehicles

Telecommunications company to spend up to $565 million to add more than 15,000 alternative-fuel vehicles to its fleet over the next 10 years.

DALLAS (AP) -- AT&T Inc. said Wednesday it will spend up to $565 million to add more than 15,000 alternative-fuel vehicles to its fleet over the next 10 years.

The telecommunications company said it will spend an estimated $350 million to purchase about 8,000 compressed natural gas-powered vehicles. It will also spend $215 million to begin replacing its existing passenger cars with alternative-fuel models, including hybrid cars and eventually cars powered by other fuel sources.

The company said the vehicle chassis for the cars that will run on natural gas will be built by a U.S. automaker. It said it will work with domestic suppliers to convert the vehicles to run on natural gas.

Last June, AT&T deployed 105 alternative-fuel vehicles in more than 30 U.S. cities. That venture followed a pilot program involving four Ford Escape hybrids in 2007 in California.

Shares of AT&T gained 33 cents to $33.35 in morning trading.

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