INVESTMENT IN RESIDENTIAL, COMMERCIAL, AND PUBLIC CHARGING FACILITIES

Editor’s Note: These series are selected from manual Electric Vehicle Community Market Launch Manual: A Guide to Prepare Your Community for Electric Vehicles which was prepared by the Electric Transportation Coalition (ETC) and the Electric Vehicle Association of the Americas (EVAA) in cooperation with the U.S. Department of Energy (DOE) and the U.S. Department of Transportation (DOT).

As with any new technology, investment in EV charging facilities will most likely be based on sound business cases that provide investors an adequate return on investment. The most likely candidate to help communities plan and build charging facilities is the local electric utility, as it is the fuel supplier. However, the infrastructure planner should be aware that other parties may be interested in investing in charging facilities at public locations, such as shopping centers, airports, and work sites.

This section provides information on the following:

  • The cost of EV charging facilities
  • Utility investment in charging facilities
  • Point-of-sale billing at charging facilities

Cost of Charging Facilities

Costs for EV charging station installations vary widely and are dependent upon the type of installation—residential, fleet, commercial, and public—and the specific location. However, studies and actual applications are supplying some cost information, as described in the case studies below.

Residential EV Charging Circuit Installation Cost Analysis

The SCE-PG&E-LADWP infrastructure study described above found that the relationship between housing stock and the EV charger installation cost is complex. However, the estimated average cost to install the electric circuits was similar for all three areas, ranging from $709 for SCE to $874 for PG&E; the composite average was $805.

General Motors Corporation PrEView Drive Circuit/Charger Installation Costs

Participating utilities took different approaches to installing the electric circuits and inductive chargers to support the GM PrEView Drive Program. Those utilities that installed permanent 220 volt/40 ampere circuits have reported costs ranging from an average of $580 for Arizona Public Service to $887 for the Los Angeles Department of Water and Power.

Electric Utility Investment/Justification

As the fuel supplier for EVs, electric utilities have a responsibility to prepare the electric supply system for the arrival of EVs. Utilities can consider applying to regulatory agencies (public utility commissions) for funding of EV -related programs based on the utility’s traditional obligation to provide safe, reliable, and cost-effective service. The following case study outlines some of the programs that one investor- owned electric utility has sought regulatory approval for:

Southern California Edison Company

In 1993, SCE and other California based, investor-owned utilities began seeking approval from the California Public Utilities Commission to invest in EVs and infrastructure support systems. Specifically, SCE requested approval to:

  • Install the necessary electrical wiring in the residential structures of new EV owners to allow for vehicle charging
  • Provide infrastructure upgrades before the meter when EVs increase the local load
  • Provide load management programs and special rates t o encourage off-peak charging
  • Build and evaluate pilot charging facilities in public and employee parking lots, shopping malls and other convenient sites to determine customer need for charging outside the home
  • Purchase EVs for meter reading use and other utility fleet vehicle applications

These types of programs may be justified due to a utility’s obligation to serve any electrical load, comply with regulatory and environmental requirements, and support local economic development. For example, utilities are required by the Energy Policy Act of 1992 (EPAct) to purchase alternative-fuel vehicles starting as early as 1996.Electric and combination electric and gas utilities have the option of selecting EVs, and can justify these purchases, even though EVs may cost more, on the need to comply with EP Act. Early purchases (those before 1998) can be justified on the need to learn how to service this new electrical load, train utility personnel, and generate EP Act credits.

Also, utilities may be able to argue that they should take the lead in reducing their vehicle emissions by using EVs. In areas where mobile sources account for a significant majority of all pollution, it may make sense to publicly promote EVs as a solution to regional air quality problems.

Public utility commissions and other approval agencies for municipal utilities must be convinced that EVs are coming and that they provide benefits to ratepayers. Potential quantifiable benefits to ratepayers can be significant and vary depending on the local electric utility. Typical ratepayer benefits can include a contribution to the utility’s margin from EV owners and costs saved from the successful management of EV load (successful EV load management can help defer the need for additional power plants and distribution system upgrades). Indirect benefits may include enhanced air quality; improved national energy security; other environmental benefits, such as noise abatement and oil spill avoidance; natural gas ratepayer benefits, as additional natural gas may be used to generate electricity; and jobs or economic growth.

Point-of-Sale Billing at Charging Facilities

Point-of-sale billing offers relative convenience for recovery of electricity costs. Nevertheless, its use can result in numerous legal and regulatory complications if not carefully crafted. If billing used such options as separate meters not owned by the utility, and the utility billed only the site owner, the site owner could be found to be selling power directly to the public. In most states, third-party electricity sales would trigger state utility commission regulation for investor-owned utilities (or local regulation for municipal utilities) to address questions such as those related to the law governing the obligations and right of utilities to serve specific areas. In addition, state utility commissions (or local regulatory bodies) have the duty to regulate the rates for all such power sales, as well as the terms and conditions under which such sales take place. In addition, other legal or regulatory obligations could be imposed.

To minimize the administrative and legal complexities of implementing billing systems, contact the local utility. Utilities are well versed in applicable law, and may already have investigated billing options acceptable to your state’s utility commission (or local regulatory body), one of which could be ideally suited to local conditions. One or more options may even have been pre-approved by regulators, saving the community from the delays due to addressing and settling new legal questions.

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March 21, 2008 · Filed Under Electric Car Conversion Blog

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