Only 6% of US utilities offer electric vehicle tariffs for their customers
WASHINGTON, July 23, 2012 /PRNewswire/ -- Electricity tariffs designed specifically for electric vehicle (EV) recharging are a key driver to promote the growth of EVs. Currently, in the United States only 6% of electric utilities offer special EV tariffs and rates for their customers, according to the second annual United States Smart Grid: Utility Electric Vehicle Tariffs (Volume II) study released today by Northeast Group, LLC. The study benchmarks all of the EV tariffs launched to-date by utilities in the United States.
The benchmark reveals that 22 utilities across 11 states have launched EV tariffs for their customers, as of the end of the first half of 2012. EV tariffs are important in helping increase drivers' adoption of EVs as they offer cheaper recharging options compared with standard household electricity tariffs.
In just the past year, utilities in Arizona, California, Indiana, Michigan and Virginia have added new EV tariffs. In Hawaii, Michigan and Nevada, more than 90% of state residents already have access to EV tariffs through their various utilities. California and Georgia are next in line, where more than 80% of state residents have access to EV tariffs. The large California utilities were early pioneers in launching EV tariffs. As EV numbers grow over the coming years, EV penetration rates are likely to be higher in states with utilities offering their customers EV tariffs.
"Under all utility EV tariffs across the US, electric vehicles are much cheaper to 'fuel' compared with conventional vehicles, with most EV fueling costs between just 10% to 60% the cost of internal combustion engine vehicles," according to Northeast Group. This can equate to savings of more than $2,000 per year for those recharging EVs versus refueling conventional vehicles with gasoline. Furthermore, special EV tariffs were found to save EV owners more money compared with standard residential electricity tariffs. EV tariffs can save approximately half the cost per year for EV owners, compared with standard electricity tariffs.
EV tariffs offered by utilities have been structured in two main forms to-date: time-of-use (TOU) tariffs and flat rate tariffs. TOU tariffs typically provide for cheaper overnight and off-peak rates for those recharging EVs. Flat rate tariffs charge customers one fixed monthly fee for recharging EVs. In addition, sliding scale tariffs – where rates increase with usage - can also be incorporated in some form with both tariff structures above.
United States Smart Grid: Utility Electric Vehicle Tariffs (Volume II) builds upon the first volume of the EV tariff benchmark, published at this time last year. This second volume provides a description of the different EV tariff structures offered across the country, a list of utilities and their specific tariff structures, a comparison and further analysis of these tariffs. For example, the study includes an analysis of how different tariffs' costs vary depending on distance driven and the time of day an EV is recharged. An appendix in the study includes details on all of the EV tariffs offered by the 22 utilities in the US.
The report is 40 pages long and includes 22 graphs and tables. Those who will benefit from purchasing this study may include:
- Electric utilities in the US planning on launching an EV tariff;
- Public Utility Commissions interested in learning more about EV tariffs launched across the US;
- International regulatory bodies interested in launching similar EV tariffs in their respective countries;
- Electric vehicle manufacturers wanting to know which states currently have utilities actively supporting EVs with special tariffs and rates;
- Research institutes and academics studying the potential for EVs;
- Regulatory lawyers;
- Consulting firms.
Those interested in purchasing the study can find an order form on Northeast Group's website at www.northeast-group.com, or by emailing Ben Gardner at: [email protected]
ABOUT: Northeast Group, LLC is a Washington, DC-based smart grid market intelligence firm.
| Table of Contents |
|
| 1. Key findings |
1 |
| 2. Background |
1 |
| 3. The EV market and tariffs in 2012 |
3 |
| 4. Tariff structures: time-of-use and flat rate |
5 |
| 4.1 TOU tariffs |
6 |
| 4.2 Flat rate tariffs |
6 |
| 4.3 Sliding scale tariff mechanisms |
7 |
| 5. Issues related to tariff structures |
8 |
| 5.1 Single meter or second meter |
8 |
| 5.2 Comparison to non-EV TOU rates |
11 |
| 5.3 Summer vs. winter rates |
12 |
| 5.4 Public charging plans |
12 |
| 6. Benchmark of US utility EV tariffs |
12 |
| 6.1 EV TOU rates: peak and off peak |
16 |
| 7. Scenario analysis: tariffs compared |
16 |
| 7.1 How do these tariffs play out in various scenarios? |
16 |
| 7.2 What do these scenarios reveal? |
17 |
| 8. More EV tariffs on their way |
21 |
| 9. Appendix I: EV tariffs offered by US utilities in 2012 |
22 |
| List of Figures |
|
| Figure 1: Locations of utilities with EV tariffs |
2 |
| Table 1: Cost comparison: Conventional vehicles vs. EVs in Georgia |
3 |
| Figure 2: Percentage of customers by state with access to EV tariffs |
4 |
| Figure 3: Percentage of utilities offering EV tariffs |
4 |
| Figure 4: Two main tariff structures |
6 |
| Table 2: List of utilities using each tariff structure |
7 |
| Figure 5: Tiered summer peak pricing at PG&E |
8 |
| Table 3: Utilities with whole house or 2nd meter options |
9 |
| Figure 6: Annual savings from EV TOU rates as opposed to regular TOU rates (25 miles/day) |
10 |
| Figure 7: Annual savings from EV TOU rates as opposed to regular TOU rates (50 miles/day) |
10 |
| Figure 8: Summer off-peak discount |
11 |
| Figure 9: Winter off-peak discount |
12 |
| Figure 10: Summer M-F tariff schedules |
13 |
| Figure 11: Winter M-F tariff schedules |
13 |
| Figure 12: Summer peak and off-peak EV rates, by peak rate |
14 |
| Figure 13: Summer peak and off-peak EV rates, by off-peak rate |
14 |
| Figure 14: Winter peak and off-peak EV rates, by peak rate |
15 |
| Figure 15: Winter peak and off-peak EV rates, by off-peak rate |
15 |
| Figure 16: Summer low-use scenario (25 miles/day) |
18 |
| Figure 17: Summer high-use scenario (50 miles/day) |
18 |
| Figure 18: Winter low-use scenario (25 miles/day) |
19 |
| Figure 19: Winter high-use scenario (50 miles/day) |
19 |
SOURCE Northeast Group, LLC
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