Electric Vehicle Charge Ready Program

Transcription

1 Electric Vehicle Charge Ready Program September 20,

2 Agenda About SCE The Charge Ready Initiative Depreciation Proposals of The Charge Ready Initiative Challenges Outcomes September 20,

3 About SCE One of the nation s largest electric utilities: Nearly 14 million residents in service territory Approximately 5 million customer accounts 50,000 square-mile service area Significant infrastructure investments: 1.4 million power poles 700,000 transformers 103,000 miles of distribution and transmission lines 3,200 MW owned generation 3

4 The Charge Ready Initiative Multi-Phase program aimed at promoting transportation electrification goals necessary to achieve California emissions objectives Capital Investment Increase Availability of EV Charging Infrastructure Outreach and Education Educate and Advise Customers on Benefits of Fueling from the Grid September 20,

5 Cumulative California PEVs Millions Charge Ready Why Now? California climate objectives require green house gas to 80% below 1990 levels Zero-Emission Vehicles (ZEV s) adoption is a critical necessity of achieving target by Cumulative California PEVs Necessary from 2010 to 2050 to Achieve Climate Goals Lawrence Berkeley National Labs 2050 PEV Scenario United Nations Pathways to Deep Decarbonization (E3) CARB 2050 Compliant ZEVs CARB ZEV Most Likely 2050 Adoption September 20,

6 Thousands Rapid Adoption is Critical to GHG Reductions ,000 units sold in past 5 years 7,300 charging stations in service across state Governor's target of 1M units by 2020 requires acceleration of market 1,800 1,600 1,400 1,200 1, Cumulative California PEVs Lawrence Berkeley National Labs 2050 PEV Scenario Average of Eight Expert Forecasts United Nations Pathways to Deep Decarbonization (E3) CARB 2050 Compliant ZEVs CARB ZEV Most Likely 2050 Adoption Governor's Target (infrastructure to support 1M ZEVs) September 20,

7 So How does Charge Ready Help Accelerate the adoption of battery powered ZEVs by increasing availability of charging infrastructure in long-dwell time locations SCE has adopted a two-phased approach: Phase 1 - Pilot Installation of up to 1,500 Charging Stations Inform and refine design and cost estimates for phase 2 Evaluate market strategies, customer interest, load impacts etc. Phase 2 Installation of additional 28,500 units (up to 30k) Apply lessons learned from Phase 1 to cost assumptions and Education and Outreach to increase efficacy Market Acceleration Support for Up to 30,000 charging stations September 20,

8 Charge Ports/Parking Spaces Thousands SCE s Proposed Implementation 2,000 1,800 1,600 1,400 1,200 SCE Charge Port/Parking Space Needs to Support PEVs Charge Ready Proposed Deployments Lawrence Berkeley National Labs 2050 PEV Scenario Average of Eight Expert Forecasts 1, Objective: provide approximately one-third of units necessary to realize California ZEV adoption by 2020 September 20,

9 Other Components of the Program Focus on Long-Dwell Time Locations Includes: multi-use dwellings (MUD s), workplaces, destination locations Excludes: Single family dwellings (MUD s are installed by HOA s, site-owners, etc.) Provide Rebates to Site-Owners to Encourage Adoption Initial proposal was to provide 100% of base cost to all customers (upgrades available for a fee) Settlement included a tiered rebate structure for customer groups Minimum of 10 Sites per location Additional Support for Disadvantaged Communities 10 percent of funds to be used in disadvantaged communities Meet all women, minority, and disabled veteran business enterprises Reduction of minimum sites to 5 in certain situations September 20,

10 Expected Benefits of the Charge Ready Program Improving and Optimizing Utility Asset Utilization Avoid on-peak charging Mitigate issues from renewable integration Demand Response California s preferred resource for meeting new generation capacity demand Environmental/Other Benefits Reduction of GHG s Improvement of Air quality Incremental Load Attract new load into the system and spread fixed costs over more kwh sales Benefits for Disadvantaged Communities Specific allocations of cost to communities facing higher barriers to adoption Innovation SCE s request for vendors may stimulate new technologies in the charging market September 20,

11 MILLIONS Program Costs Capital Costs (Excludes escalation and loaders) (in $000) Utility-Side Costs $ 3,354 $ 6,707 $ 11,178 $ 19,003 $ 26,828 Customer-Side Costs $ 7,586 $ 15,173 $ 25,288 $ 42,990 $ 60,691 Charging Station Rebate $ 5,850 $ 11,700 $ 19,500 $ 33,150 $ 46,800 Other Capital Costs $ 146 $ 262 $ 416 $ 687 $ 958 Capitalized Labor $ 564 $ 676 $ 719 $ 855 $ 975 Total Capital Costs $ 17,499 $ 34,518 $ 57,102 $ 96,685 $ 136,252 Pilot Phase September 20,

12 Ratemaking Submitted advice filing at same time as application to include in tariffs amounts associated with the program in a Charge Ready Program Memorandum Account (CRPMA) Requested that if program costs were below estimate that Commission find the costs reasonable and be adopted Upon approval, costs would be transferred to Charge Ready Program Balancing Account (CRPBA) Costs incremental to SCE s General Rate Case filing September 20,

13 Depreciation Rate Proposals September 20,

14 System Overview System is comprised of traditional and non-traditional infrastructure Proposal included rebate costs as a capital component of the case September 20,

15 Depreciation Proposals Traditional Utility Infrastructure would be captured in SCE s existing accounts and be included to it s group depreciation rates Customer side costs were modeled after services account (FERC Plant Account 369) and recorded to FERC Plant Account 371 Customer-Side Infrastructure Charging Stations were proposed to last the program life of 10-years and be recovered as a regulatory asset September 20,

16 Depreciation Proposals - Summary Average Service Remaining Net Depreciation Account Description Life Life Salvage % Rate Easements % 1.67% 368 Line Transformers % 3.68% 369 Distribution Services % 4.76% 370 Meters % 5.35% Composite 4.23% 371 Customer-Side Infrastructure % 4.63% 182 Charging Stations (Reg Asset) % 10.00% September 20,

17 Customer Side Infrastructure Account 371- Installations on Customers' Premises- Rate Calculation Account Net Salvage Percent Average Service Life % 40 Annual Accrual Rate = (100%-Net Salvage Percent) Average Service Life = (100% - (-85%) 40 Account 371 Accrual Rate = 4.63% * Uses 2012 GRC authorized parameters from FERC Plant Account 369 as assets will have similar life and salvage characteristics to Account 371. Includes the panel and wiring components from the meter to the charging station Recorded to FERC Plant Account 371 No current investment in account requiring use of Average Service Life September 20,

18 Charge-Ready Rebates - Justification SCE proposed to capitalize the costs of the rebates into a regulatory asset (FERC Account 182) The cost recovery schedule was set to be consistent with the program life and customer commitment requirements of 10 years Recent CPUC Decision (D ) established that SCE could own and maintain behind-the-meter assets ASC 980 Establishes that the Rate actions of a regulatory can provide reasonable assurance of the existence of an asset. September 20,

19 TURN Challenges to SCE s proposals No rebate on charger Rebate should be expensed Capitalized rebate should receive return on debt Capitalized charger should be owned by SCE Site owners should have skin in the game Removal of rebate still subsidizes 70% of customer costs GAAP states rebates should be expensed Capitalization is inconsistent with regulatory policy Accurately reflects the lower risk SCE faces with handing out free rebates No financial incentive for site host to maintain and optimize system use SCE Rebuttal Regulatory Asset treatment of charger rebates create equitable ratemaking GAAP gives regulators authority to grant regulatory asset treatment Mobile-home Park OIR provides precedent for unowned assets to receive regulatory asset treatment. SCE believes rebate is necessary for turn-key solution September 20,

20 Phase 1 Status SCE and intervening parties entered an all-party settlement in June 2015 SCE agreed to expense costs associated with rebates in Phase 1 of the program Rebates were reduced from 100% of cost for all customers to varying rates depending on market segment Commission has not adopted settlement and currently requires additional fact finding September 20,

21 California Climate Change Policy Assembly Bill 32 (2006) reduces State greenhouse gas (GHG) emissions to 1990 levels by 2020 (~16% reduction) Cap and trade program basics: State-wide cap in 2013 decreases over time Compliance met through allowances, offsets, or emissions reductions Excess allowances sold, or banked for future use January 2014 merger with Quebec cap and trade program SCE received 32.3 million 2013 allowances vs million metric tons 2012 GHG emissions Allowances sold into quarterly auction and bought back for compliance SB 1018 (2012) auction revenues used for rate relief for residential (~93%), small business, and large industrial customers Energy Efficiency 15% RPS 14% AB32 Emissions Reduction Programs Low Carbon Fuel Standard 19% High GWP Gases 7% Cap & Trade 22% Other 23% September 20,