Filed with the Iowa Utilities Board on July 27, 2018, TF STATE OF IOWA DEPARTMENT OF COMMERCE IOWA UTILITIES BOARD

Transcription

1 STATE OF IOWA DEPARTMENT OF COMMERCE IOWA UTILITIES BOARD IN RE: : : Iowa 80 Truckstop, Inc. and : DOCKET NO. DRU- Truckstops of Iowa, Inc., : : : PETITION FOR DECLARATORY ORDER Iowa 80 Truckstop, Inc., an Iowa corporation, ( Iowa 80 Truckstop or Iowa 80 ) and Truckstops of Iowa, Inc, ( Truckstops of Iowa ) an Iowa nonprofit corporation, pursuant to 199 IAC 4.1, request that the Iowa Utilities Board ( Board ) issue a declaratory order clarifying that electric energy sold for the purpose of electric vehicle ( EV ) charging at commercial and/or public stations is not considered resale of electric service and that fuel retailers may sell this service of recharging car batteries by the kilowatt hour ( kwh ). The most recent Interstate Power and Light Company ELECTRIC TARIFF 1 1 states that the sale by kwh is prohibited. However, such prohibition will not allow consumers to have the information to make an informed purchasing decision and ensure a fair and competitive market. In support of its Petition, Iowa 80 Truckstop and Truckstops of Iowa state: 1. Statement of relevant facts on which the ruling is requested. Iowa 80 Truckstop is a major retail establishment located off Interstate 80 in Walcott. It is not only a regular stop for truckers, but due to its status as the World s Largest Truckstop, it is a major draw for individuals in automobiles. To address the growing demand for the recharging of electric vehicles, Iowa 80 has installed the infrastructure to support EV charging stations. Iowa 80 is now in the planning process to acquire and install the EV charging stations. Iowa 80 would like to charge and advertise the price per kwh that a customer will receive when charging at their EV charging stations. Truckstops of Iowa, Inc. is an Iowa nonprofit corporation under Iowa Code Section 504. It is an association consisting of three members, Iowa 80 Truckstop, Pilot Flying J Travel Centers, and Love s Travel Stops. 1 Interstate Power and Light Company ELECTRIC TARIFF 1, (Effective Date 13, 2017 Section 5.13) 1

2 Approval of TF : Interstate Power and Light Company ELECTRIC TARIFF 1 On August 14, 2017, Interstate Power and Light Company ( IPL ) filed a revision to Section 5.13 Resale of Electric Energy within the Customer s Utilization of Electric Service section of IPL s Electric Tariff General Rules and Regulations, which stated Electric energy sold as an alternative fuel by Electric Vehicle Supply Equipment (EVSE) for the purpose of electric vehicle (EV) charging at commercial and/or public EVSE stations on per-minute or per-hour time basis is not considered as resale of electric service. 2 On August 29 th, 2017, Board staff responded and recommended the following language Electric energy sold for the purpose of electric vehicle (EV) charging at commercial and/or public stations is not considered resale of electric service. 3 The staff noted it would be simpler to interpret, easier to apply, and more adaptable to technology and business model changes over time. On September 12, 2017, IPL responded, stating that it now makes its amended filing to incorporate the Board staff recommended language into the original language proposed. 4 However, the Board staff recommended language from the August 29 th letter was not incorporated into the amended Tariff. The actual amended filing had the following new language, Electric vehicle (EV) charging at commercial and/or public stations is not considered resale of electric service, provided electric energy is not sold on a per kwh basis. 5 The section, provided electric energy is not sold on a per kwh basis was entirely new language inserted and not acknowledged nor explained in the Electric Interpretation which was filed with the amended Tariff language. 6 One day later, on September 13, 2017, TF , as amended on September 12, 2017, was approved, although subject to complaint or investigation. 7 In any contested proceeding, it is important for all entities negatively impacted to have notice and the ability to provide facts to enable the Board to make the most well-informed decision. Fuel retailers, including fuel retailers working with IPL to install such equipment at the time, 2 Electric Tariff, Docket No. TF , August 14, Staff Correspondence, Docket No. TF , August 29, Electric Interpretation, No. TF , September 12, Electric Tariff, Docket No. TF , September 12, Electric Interpretation, No. TF , September 12, Approval Letter, Docket No. TF , September 13,

3 were not notified of the proceedings and hence were not able to provide the board and the Office of Consumer Advocate with the negative ramifications of such a restriction. EV Charging Time Varies Greatly Based on the Equipment and the Vehicle EV charging stations vary greatly on how fast they charge. As the U.S. Department of Energy s website on EV charging stations notes: Charging equipment for plug-in electric vehicles (PHEVs or EVs) is classified by the rate at which the batteries are charged. Charging times vary based on how depleted the battery is, how much energy it holds, the type of battery, and the type of charging equipment. The charging time can range from less than 20 minutes to 20 hours or more, depending on these factors. 8 There are three main categories of charging stations, AC Level 1, AC Level 2, and DC Fast Charging. However, charging speeds vary greatly within each level. For example, the Department of Energy notes that Level 2 chargers can vary from 7.2 kw to 19.2 kilowatts (kw). 9 A consumer paying for 30 minutes from a Level 2 or DC Fast Charging station will not know the true cost of the charge unless the price per kwh delivered is noted. Not only will charging stations differ, but different car batteries will charge faster than others creating a discrepancy in the amount of electricity consumed per minute. 10 Therefore, preventing the sale by the kwh will require a retailer to set a price per minute based on the amount of electricity expected to be used by the average car battery. Thus, the person with the more advanced technology battery will undoubtedly get a lower price per kwh, while the person driving a car with a less advanced battery will pay a higher price per kwh. Such a policy will disadvantage consumers with less means. 2. Citation and the relevant language of the rules whose applicability is questioned. Iowa 80 and Truckstops of Iowa support the August 29, 2017 staff recommendation, which suggested the following language: Electric energy sold for the purpose of electric vehicle (EV) charging at commercial and/or public stations is not considered resale of electric service. 8 United States Department of Energy website, Developing Infrastructure to Charge Plug-In Electric Vehicles, 9 Ditto 10 Massachusetts Institute of Technology Electric Vehicle Team, Information about EVs, (includes description of battery specifications and their impact on performance) and 3

4 The Iowa Code s regulation of the distribution of electricity was never intended to prevent a retail establishment from being able to recharge a battery. This is consistent with the longtime practice of selling batteries (which is stored electricity), recharging dead car batteries by tow trucks and service stations, and the more recent deployment of cell phone recharging stations. The recharging of car batteries has never been viewed as reselling electric service. The Board does not have the authority to regulate the sale of batteries nor does it have the authority to regulate service stations and tow truck operators. These organizations, including Iowa 80 Truckstop and the other members of Truckstops of Iowa, have been selling and recharging vehicle batteries for decades. It is not clear that the Board has the authority to regulate the sale of such a service. If many years from now, battery and vehicle technology reach a point where the sale of recharging by the kilowatt hour is somehow adversely impacting the distribution of electricity, the legislature may decide to regulate such activity. However, it is hard to understand the legal justification of regulating such activity today. Even if it is determined that the Board has the legal authority to regulate the recharging of vehicle batteries, the limitation placed in the Interstate Power Tariff, which states provided electric energy is not sold on a per kwh basis, is not in the public interest nor is it a workable limitation in the long-term. Those impacted, the retailers and owners of EV charging stations, were not notified of the proposed limitation and did not have a chance to respond. As a result, the Office of Consumer Advocate was likely unaware of the impact on consumers from the restriction. Thus, the limitation should be reviewed with the proper input from those impacted. Preventing the sale by the kwh will require a retailer to set a price per minute based on the amount of electricity expected to be used by the average car battery. The effect of such limitation will be to prohibit consumers from knowing the price that they will pay for their future cars fuel. The current Tariff language will prohibit a competitive market place from developing, since consumers will not be able to compare prices. In addition, the limitation will adversely impact individuals with less means for two key reasons. First, apartment dwellers, which are disproportionately lower income, will have less access to home charging. They will be more reliant on commercial charging stations. The lack of ability to know the true price charged will severely impact this population. Second, as noted above, newer, more advanced batteries will charge quicker. Those driving older EVs with older batteries will receive fewer kwh per minute of charging. Thus, those with less means will pay higher prices per kwh than the individuals that can afford the newer, more advanced vehicles, unless retailers can charge by the kwh, rather than by time. 4

5 The United States Department of Commerce s National Institute of Standards and Technology addressed this direct topic in the current edition of the Uniform Laws and Regulations in the Areas of Legal Metrology and Engine Fuel Quality. 11 The Uniform Law states, in part, A computing EVSE shall display the unit price in whole cents (e.g., $0.12) or tenths of one cent (e.g., $0.119) on the basis of price per megajoule (MJ) or kilowatt-hour (kwh). In cases where the electrical energy is unlimited or free of charge, this fact shall be clearly indicated in place of the unit price. 12 The Uniform Law notes for fixed service or variable service applications, the nominal power or minimum and maximum power transfer must be posted Proposed Answer Desired by Petitioner and a Summary of the Reasons in Support of Such Proposed Answers. Iowa 80 Truckstop and Truckstops of Iowa approve the following language previously recommended by Board staff for IPL s Tariff 1, which states Electric energy sold for the purpose of electric vehicle (EV) charging at commercial and/or public stations is not considered resale of electric service. 14 If a retail establishment can only tell customers how much it will cost per minute - but cannot say how much charge they will get in a given time frame - consumers will have no idea what amount of charge they will receive for a certain price. While cars are predominately powered by gasoline today, the adoption of electric vehicles is rapidly increasing. Gasoline is the only consumer product where every retailer posts their prices in big numbers on tall signs, so the public does not even have to pull into the parking lot to compare prices. The IPL Tariff is asking that consumers go from a marketplace for their car fuel that allows them to drive down the street and compare prices, to in the future, having to wait until their car is charged up, and then be a mathematician to learn how much they just paid for their fuel. The current IPL Tariff will prevent true competitive pricing. In addition to curtailing competition, the restriction will disadvantage those with less means, due to their greater reliance on commercial charging stations as well as the slower charging of older and less advanced EV models. 11 The United States Department of Commerce s National Institute of Standards and Technology s Website, NIST Handbook (Current Edition), and text of uniform law can be found at /NIST.HB pdf 12 NIST Handbook (Current Edition), Section (a) (page 133). 13 Ditto, Section (b) and (c). 14 Staff Correspondence, Docket No. TF , August 29,

6 While the public policy reasons strongly support allowing retailers to sell EV charging services by the kilowatt hour, the Board can base the declaratory order on the simple reason that such service is not a regulated Board activity, since it is not the resale of electric service. 2. Statement Regarding Other Proceedings. Iowa 80 Truckstop and Truckstops of Iowa are not a party to any other proceeding. We are not aware of any other proceeding that has or is addressing this issue. 3. Names and Addresses of Others Known by Petitioner to be Interested in Questions Presented. Samantha C. Norris Senior Attorney Alliant Energy Corporate Services, Inc. 200 First St., SE Cedar Rapids, IA Phone: samanthanorris@alliantenergy.com 4. Request for Meeting Pursuant to 199 I.A.C Iowa 80 Truckstop and Truckstops of Iowa do not believe that an informal meeting is necessary. However, should such a meeting be an effective and efficient way of providing information to the Board or to any party that intervenes in this docket, Iowa 80 and Truckstops of Iowa would be happy to participate. 5. Communications All communications should be provided to: Mr. Mike Kuperman House Counsel Iowa 80 Truckstop, Inc. 515 Sterling Drive Walcott, Iowa Phone: (563) mike.kuperman@iowa80group.com Bob Rafferty The Rafferty Group 3408 Woodland Av Phone: (515) rafferty@raffertygroup.com 6

7 WHEREFORE, Iowa 80 Truckstop, Inc and Truckstops of Iowa respectfully request that the Board issue a declaratory order that affirms that electric energy sold for the purpose of electric vehicle (EV) charging at commercial and/or public stations is not considered resale of electric service and allow pricing for EV charging stations by the kwh. DATED this 27th of July Respectfully submitted, IOWA 80 TRUCKSTOP, INC. AND TRUCKSTOPS OF IOWA, INC. By MIKE KUPERMAN ATTORNEY FOR IOWA 80 TRUCKSTOP, INC. AND TRUCKSTOPS OF IOWA, INC. 7