Electric Companies and the EV Revolution NCSL Legislative Summit Energy Policy Summit Monday, August 8, 2016 Chicago, IL
Key Questions Why electric transportation? Can the grid handle electric transportation? How can electric companies accelerate the transition, and manage it in such a way that it benefits all customers? 2
Why electric transportation? Relative Emissions for Passenger Cars Widespread transportation electrification reduces greenhouse gas emissions by 48% to 70% 3 SOURCE: EPRI-NRDC, Environmental Assessment of a Full Electric Transportation Portfolio
1973 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2014 Million Metric Tons of Carbon Dioxide Why electric transportation? 3000 2500 2000 1500 1000 CO2 Emissions by Sector Electric Power Transportation Electric Power: more than 20% reduction from 2005 levels by end of 2015 Transportation: decreased 10% 2005-2012, but increased 5% through 2015 500 0 SOURCE: EIA, July 2016 Monthly Energy Review 4
1976 1978 1979 1981 1983 1984 1986 1988 1989 1991 1993 1994 1996 1998 1999 2001 2003 2004 2006 2008 2009 2011 2013 2014 $/gallon equivalent Why electric transportation? 5.00 Gasoline vs. Electricity Price (real price, July 2016) 4.50 4.00 3.50 Regular Gasoline ($/gal) 3.00 2.50 2.00 1.50 1.00 0.50 Residential Electricity ($/gal equivalent)* 0.00 *Equivalent electricity price assumes average vehicle fuel economy of 27.9 mpg, PEV efficiency of 0.33 kwh/mi 5 SOURCE: EIA, Short-Term Energy Outlook, July 2016
Can the grid handle electric transportation? SOURCE: Seattle City Light 6
Can the grid handle electric transportation? 2010 2020 2030 7 SOURCE: E3, California Transportation Electrification Assessment, Phase 2: Grid Impacts
Can the grid handle electric transportation? Net Revenues from PEV Charging Load Illustrative results for California Utilities Revenue Cost 8 SOURCE: Nancy Ryan, E3, Plug-in Vehicles from the Utility, Ratepayer and Grid Perspective
How can electric companies accelerate electric transportation? What How Who Vehicles Affordable Available Charging Infrastructure Affordable Available Consumers Awareness Interest Technology cost Models in key segments, markets Incentives Grants/loans Electric company programs Business models Word of mouth Dealers Campaigns Advisory services Automakers Governments Electric companies Equipment/service providers Governments Automakers Electric companies Governments All stakeholders 9
How can electric companies accelerate electric transportation? Electric Power Grid Ubiquitous Safe, affordable, reliable Increasingly clean Modernization underway SOURCE: NERC 10
How can electric companies accelerate electric transportation? Transformer Service Meter Panel Conduit/ Wiring Charging Station Vehicles Service Connection Supply Infrastructure Charger Equipment Electric company Customer Charging Infrastructure More needed to serve market Challenging business case Multiple networks, standards Complicated for users, customers SOURCE: Southern California Edison 11
How can electric companies accelerate electric transportation? Example: California CPUC Decision 11-07-029 (July 14, 2011): blanket prohibition on electric company ownership of charging infrastructure CPUC Decision 14-12-079 (December 18, 2014): prohibition lifted, accept applications on case-by-case basis SB-350 (September 11, 2015): widespread transportation electrification added to principle goals of electric companies, requires CPUC to direct electric companies to file applications 12
How can electric companies accelerate electric transportation? Example: San Diego Gas & Electric Power Your Drive program Install 3,500 charging stations at multiunit dwellings and workplaces Dynamic rate encourages smart charging Service Connection Supply Infrastructure Charger Equipment Electric company owned and operated 13 SOURCE: San Diego Gas & Electric, http://www.sdge.com/clean-energy/electric-vehicles/poweryourdrive
How can electric companies accelerate electric transportation? Example: Southern California Edison Charge Ready program Install up to 1,500 charging stations at long-dwell locations in Phase 1 Rebate for charging equipment Service Connection Supply Infrastructure Charger Equipment Electric company owned and operated Rebate 14 SOURCE: Southern California Edison, https://on.sce.com/chargeready
How can electric companies accelerate electric transportation? Example: Avista Utilities (Washington State) HB 1853 (May 11, 2015): clear policy directive Install 265 charging stations at long-dwell locations, plus 7 DC fast chargers Rebate to reimburse premises wiring upgrades $100 dealer incentive for data acquisition Service Connection Supply Infrastructure Charger Equipment Electric company Rebate Electric company SOURCE: Avista Utilities 15
How can electric companies accelerate electric transportation? Example: Oregon - SB 1547: Clean Electricity and Coal Transition Plan (3/8/2016) - Requires PUC to direct electric companies to file applications to accelerate transportation electrification, which may include charging infrastructure - Applications expected before the end of the year Example: Utah - SB 115: Sustainable Transportation and Energy Plan (3/29/2016) - Requires PUC to authorize electric company program to incentivize electric vehicle infrastructure - Action required before July 1, 2017 16
How can electric companies accelerate electric transportation? Example: KCP&L - Clean Charge Network - Up to 1,200 charging stations Example: Georgia Power - Get Current. Drive Electric - 20+ Community Charging islands 17 SOURCE: (left) ClimateWire, How Kansas City became the EV mecca of the Midwest; (right) Georgia Power
How can electric companies accelerate electric transportation? PG&E and BMW ichargeforward pilot project SOURCE: Pacific Gas & Electric 18
Recap Electric transportation has significant public benefits The grid can handle major transportation electrification with minimal cost Electric companies can help accelerate the transition - Improved system utilization puts downward pressure on rates - Patient capital can break the chicken and egg problem, expand the pie for all players - Deploy at scale with expected safety, reliability, affordability, for all customers - Flexibility: determine what is best for your market Now is the time to get started 19
The Edison Electric Institute (EEI) is the association that represents all U.S. investor-owned electric companies. Our members provide electricity for 220 million Americans, operate in all 50 states and the District of Columbia, and directly employ more than 500,000 workers. With $100 billion in annual capital expenditures, the electric power industry is responsible for millions of additional jobs. Reliable, affordable, and sustainable electricity powers the economy and enhances the lives of all Americans. EEI has 70 international electric companies as Affiliate Members, and 270 industry suppliers and related organizations as Associate Members. Organized in 1933, EEI provides public policy leadership, strategic business intelligence, and essential conferences and forums. For more information, visit our Web site at www.eei.org.