This paper considers ways in which utilities and regulators can encourage electric vehicle owners’ participation in utility-managed charging programs.
Unmanaged EV charging creates the risk of squandering electric system capacity and, instead, increasing system costs, which are borne by all ratepayers. This interplay between EVs and power systems represents a significant opportunity for demand flexibility if policymakers and planners in the power and transport sectors integrate smart charging in decision-making. If there was ever a time for regulators to keep track of where and when EVs are being charged, it is now.
The paper explores five key questions for regulators:
- Why managing load is so important. If U.S. EV adoption rises to 30 or 40 million vehicles on the road by 2030, will states be prepared?
- Reflecting costs in electricity prices: rate design and time-of-use rates. Is utility pricing actually benefitting the grid while also meeting drivers’ mobility needs?
- Considering program participation: Opt in or opt out? Are utility EV charging programs doing everything they can to secure the participation of EV owners?
- Utility reporting and other data. Do utility programs report the number of EVs that are in utility service territories and whether EV owners are actually participating in charging programs?
- Utility programs. Do commission orders and rules reasonably support utilities so they can provide charging programs that successfully recruit customer participation?
