Public Utilities Regulatory Authority (PURA) Directs Utilities to Offer EV Charging Incentives

The final rate design adjudication was released on July 14th. Even though it is the final version, it actually isn’t quite final yet. We now know a lot about the program, but the document creates working groups to fill in unfinished gaps on some important details, such as some rates, approved equipment, etc. The PURA doc is uploaded to the website as a blog post here. It doesn’t exactly read like Jurassic Park, but we need this kind of thing if we are to wean ourselves off “dino juice.”

The program is quite comprehensive, containing incentives for residential and commercial, the latter including workplace charging and fleets, and which also applies to municipalities. The incentives cover hardware, service upgrades, make-ready, demand charge mitigation, and discounted electric rates.

It is important to note that this program takes effect in January 2022. It is not retroactive. If you purchase a charger tomorrow, it will not be eligible for the subsidies.

Below is a summary of the incentives referenced in the chart at the top of the blog post. These are hardware and installation-related discounts:

• A residential incentive of up to $500 for the cost of an EV charger. This incentive is for a smart charger, which is a WiFi-connected charger. EV charger prices vary, in part depending upon how many amps are drawn by the charger, but according to MYEV.com, the range for a smart charger is $600-$800.  If you take advantage of this incentive, you are required to participate in a managed charging program. The point of the connected charger is to enable the utility (which is also known as an Electric Distribution Company or EDC) to see and communicate with the charging unit.
• Also for a residence, there is a subsidy to help with the cost of an electric service upgrade if that is necessary if your current panel does not have the capacity to accommodate the added amperage of an EV charger. The amount of the subsidy is not yet determined.
• There is no mention in the chart of a subsidy specifically for installation, so we assume for now that the $500 applies to both hardware and installation. Installation costs can vary considerably depending on how far your panel is from your garage. It could be as much as $1,000.
• There are similar incentives offered for multi-unit dwellings (MUD), workplace chargers, and make-ready. The incentive is 50% of the cost of the charger subject to a cap for the site and a minimum number of charging ports. Note that this is ports, not chargers. There are dual-port charging units. There are higher site caps for MUDs, public level 2, and DCFC charging in underserved communities.
• There is a 100% make-ready incentive, which means the EDC will pay to bring the power to where the chargers will be installed. This is a big deal.
• Finally, there is a subsidy of 50% for the installation of a DCFC charger, which is short for DC current fast charger, also known as a level 3 charger. These are commercial, high voltage units that can quickly charge an EV capable of accepting a fast charge, which applies to most battery electric vehicles.
• There will be a list of specific approved charging equipment. This is necessary for the utilities to be sure they are able to get the information they need from the charger. This list will be finalized later in the year.

Residential Incentives for Electricity Usage

As noted in the first bullet about residential charging, a household can receive an incentive for participating in a managed charging program. There are 2 levels, called basic and advanced. As mentioned earlier, receiving the incentives for the hardware require participation, along with giving the EDC permission to capture data from the charger.

• Basic incentive. In this program, a consumer will be notified of an upcoming demand response event (i.e. when the EDC is expecting there to be a high demand for electricity and they need to take measures to avoid brownouts or blackouts). The consumer has the option to decline participation. However, the default setting is opt-in. Incentives are awarded for participation. The particulars are still being developed, but there is a cap of $200 per year, which will be sent as a direct payment to the consumer.
• Advanced (direct load control). The consumer will set charging sessions (via app, web portal, email or text) and the EDC has the right to throttle the rate of charge. The particulars of the incentive are still under development. Your participation level will influence the size of your incentive. We hope this is not too burdensome a level of admin for the consumer.
• The Authority has directed the EDCs to submit recommendations for EV rates for MUDs, which could involve sub-metering.

Note: A common way of protecting the grid, which is used in other places but is not part of this program, is time of use (TOU) charging. We are disappointed that this isn’t part of the program because it is a very simple, easy to understand, no maintenance approach. If you charge during off-peak hours, you get a lower rate. Easy. The adjudication specifically states that it doesn’t foreclose moving that way at some future point. There are regular evaluation points built into this 9-year program. And there is nothing to say that TOU can’t be combined with managed charging. Theoretically, if every EV (assuming many more of them than there are today) started a charging session at the first minute of the off-peak period, there could be a demand surge, but managed charging could mitigate that.

There is an existing installed base of EV chargers, and many of these, my guess is almost all of them, are so-called dumb chargers. They are not WiFi enabled so the EDC can’t see or interact with them. The program tasks the utilities to develop a workaround to include these chargers as it could jumpstart program participation. There are existing programs at other utilities, Con-Ed comes to mind, that do just that. With Con-Ed, the driver gets a flash-drive type device to install in the car’s USB port, or with some manufacturers, there is the ability to connect directly to the telematics of the vehicle with the owner’s permission, and incentives will be developed to reward off-peak charging. This actually comes a little closer to time of use. Finally, a recent development is that there is equipment coming on the market that can add connectivity to a dumb charger. PURA is aware of this, as well as developments in better accessing vehicle telematics, and there is the potential for this part of the program to evolve.

The $200 cap on residential demand response rebates seems low to us. The concern is the lack of differentiation between one and two (or more) EV households. We want to see all vehicles participating.

Demand Charges

Demand charges affect commercial establishments. If the demand for electricity spikes for a period of time above normative levels, electric rates increase substantially. Demand charges have been a barrier to the installation of level 3 charging stations. The adjudication directs the EDCs to maintain a temporary rate-rider to mitigate demand charges while taking the time to develop a more permanent and sustainable solution. Demand charges were originally developed so that those putting the most strain on the grid contribute disproportionately to necessary upgrades. These rules were developed long before the modern EV and definitely need to be re-thought.

Outreach

On balance, this is a strong program. We look forward to seeing, and if possible, being a part of, how it evolves. We intend to keep our members informed and hope the outreach, in general, is effective so it hits the ground running in January!

The Public Utilities Regulatory Authority has released the final version of the EV Rate Design

This program provides incentives for off-peak and managed charging, subsidies for EV chargers, and make-ready (bringing the electricity to where the chargers will be located). This is a dense document and we will be doing in the coming months to explain the details. Also, even though it is the final version, there are still some portions that aren’t finished. Working groups have been assigned to do that and report to PURA by Oct. 15th. The plan will take effect in January 2022.

Final EV Rate Design 171203RE04-071421

Post by Analiese Paik and Barry Kresch

EVs Are Essential to Mitigating the Climate Crisis

We’re in a climate crisis and each of us should be taking action, regardless of state and federal policy. Driving electric has become a no brainer now that new models are out with longer-range batteries in styles and sizes that fit varying consumer needs. The Rivian R1T pictured above is a luxury adventure pickup with an optional camp kitchen with an induction cooktop that tucks away in a gear tunnel.

If Congress passes the Clean Energy for America bill, or folds it into other legislation, EV buyers could enjoy up to $12,500 in tax incentives/rebates on qualified vehicles until fully 50% of the cars on the road are electric. Currently the full $7,500 tax credit is still available to all-electric car (BEV) buyers as long as they aren’t buying a GM or Tesla vehicle (they met their 200,000 vehicle quota). Connecticut also provides a cash rebate for certain EVs, both new and used, but the parameters are always changing (read more here).

Create Zero Tailpipe Emissions

A battery electric vehicle is a zero-emissions vehicle. If we are to mitigate climate change, it is imperative to electrify transportation which currently accounts for 38% of statewide greenhouse gas emissions in the form of carbon dioxide and methane. The state has set a goal for itself of 500,000 registered EVs by 2030. We are less than 3% of the way there. Zooming out, the bigger transportation picture includes mass transit, active transport, and medium/heavy duty vehicles.  Every year, we see rising temperatures, as evidenced by heat waves, more severe hurricanes, drought, and wildfires. This is climate change made manifest. We can’t afford to be complacent. The time for rapidly transitioning to a zero emissions transportation system is now.

Improve Public Health

CO2 and, methane aren’t the only pollutantants emitted from vehicle exhaust. There is particulate matter (pm) and oxides of nitrogen (NOx) to name two. NOx + volatile organic compounds + sunlight = ozone, the main ingredient in smog. The American Lung Association gives every county in Connecticut a grade of F for ground-level ozone. Smog and particulate matter are major contributors to cardio-pulmonary disease and cancer, and is a risk for pregnant women. Imagine the positive health impacts on communities near major transit lines no longer subjected to the nois a risk for pregnante, NOx and pm from road traffic. Has anyone quantified the positive impact on real estate values as roadway noise, pollution and climate damage goes away?

Save Money

While an electric vehicle can be more expensive to acquire, the cost of owning one is significantly less than an internal combustion engine (ICE) car according to Consumer Reports. Not only is it less expensive to power a vehicle on electricity, but EVs also need much less maintenance. The bottom line is that it’s half as expensive to drive an electric than an internal combustion engine (ICE) vehicle because of the fuel and maintenance savings. And the time you save could make it even cheaper. So can free charging.

While there is variation among EVs in terms of efficiency and electricity rates, a reasonable benchmark is a cost of 5 cents per mile to operate an EV. By contrast, if an ICE vehicle gets 20 MPG and gasoline costs $3 per gallon, the operating cost is 15 cents per mile. And there are federal, state purchase incentives that can reduce or eliminate the differential in the EV acquisition cost. There are also forthcoming utility incentives that will lower the cost of charging.

Aside from the fuel costs, there are lower maintenance costs.  With approximately 90% fewer moving parts in an electric vehicle relative to an ICE vehicle, there is simply less to maintain and fewer things to break. An EV has no spark plugs, catalytic converter, alternator, transmission, timing belt, water pump, and doesn’t need oil changes to name a few examples. A recent analysis conducted by EV Club of CT President Barry Kresch shows tens of thousands of dollars savings accruing to the Town of Westport after the PD opted for a fully-outfilled Tesla Model 3 squad car rather than a Ford Explorer (gas powered ICE).

Drive More Efficiently

Regenerative braking, where the engine slows the car and recaptures some of the kinetic energy to store in the battery, means there is less wear on the friction brakes and the energy isn’t wasted and converted to heat lost in the atmosphere. It is not uncommon to go 70,000 or more miles before brakes need to be serviced on an EV.

Enjoy Reliability

Fewer things to break means fewer trips to the repair shop, less downtime, less inconvenience and more peace of mind. No oil changes saves a quarterly visit to the service department and avoids the time and hassle. A great strategy for someone with a daily commute of 60 miles or less would be to purchase a used EV that still has good battery life, charge it at home and use it as the daily driver. The state of CT’s CHEAPR program now offers cash rebates to qualified buyers of used EVs. If you find DEEP’s website confusing, join us on July 27, 2021 where we’ll explain it in consumer-friendly English during our free webinar, How to Save Money on an EV.

Have More Fun Driving

EVs have instantaneous torque. Hit the accelerator and the electric motors immediately respond. This is why performance EVs can outgun the high-performance ICE vehicles. On Connecticut roadways, especially congested highway and parkway entrance and exit ramps, the instant speed means you can maneuver that much more quickly and safely. EVs come with advanced safety and drive assist features that make your drive on our busy roadways safer. Bumper to bumper traffic? Turn on autopilot, keep your hands on the wheel and eyes on the road, but give your outstretched legs a break and let the car do the start and stops for you. Your daily commute just more relaxed.

Save Time

You’ll never have to go to a gas station again for fuel. That means no time taken out of your schedule to gas up or wait for an oil change or more complicated maintenance or repair. Most EV owners charge their vehicles at home at night and love the convenience. When you get up to go to work, you have a full “tank.” When you’re away from home, some EV chargers even let you charge at no cost. Your town likely has at least one free charger. Look for them near libraries and town halls; schools can be tricky, especially when in session. Join us on July 27 to learn more free charging hacks.

Promote Energy Security

EVs go hand in hand with decarbonizing the grid and rapidly advancing the shift to all-electric homes and a distributed energy network.  NREL (National Renewable Energy Laboratory) is developing and evaluating fully integrated systems that connect electric vehicles (EVs), transportation infrastructure, power grids, buildings, and renewable energy sources.

We can produce the electricity we need from domestic renewables like solar and wind. If you have solar panels on your home, even better (consider adding battery storage for resiliency). The CT grid is moderately clean at present, mainly because the state gets 38% of its electricity from nuclear and almost none from coal; the great preponderance is from natural gas (sigh). There is a mandate for 30.5% of electricity in 2021 to come from renewables, though the state is falling short of that. However, in recent years, the legislature has authorized offshore wind and stationary storage projects, and there has been approval of some community solar. Even if you do not have solar on your roof, you can choose a supplier that generates its energy from renewables at EnergizeCT.

Support Domestic Green Jobs

Green jobs are new economy jobs that are critical to rapidly transitioning the US and world to a sustainable future while growing and creating well-paying, in-demand, skilled jobs (many unionized) in STEM, EV manufacture, EV charging infrastructure, energy storage, solar systems, wind turbines, and all manner of R&D, manufacture, service, maintenance and repair. Ohio’s Mahoning Valley is home to a “fledgling electric vehicle manufacturing cluster” that is supported by the government, industry, unions, schools and universties working in concert with one another to ensure workforce training matches job creation. Read about this exciting workforce development plan and and growing EV industry in Ohio here. Now imagine if we had that in Connecticut.

The EV Club of CT meets online monthly and all drivers are welcome, as are EV-interested. Please comment below or send us your inquiries.

Photo: Barry Kresch

A direct sales bill did pass the legislature, just not the one we wanted. Connecticut residents now can buy pot, but not a Tesla.

Emerging from the smoke, we can see for the dealers what selling EVs looks like. They prioritize politics over actually selling EVs, protectionism over innovation. The one who loses is the consumer, as most EV buyers are forced to go out of state for their vehicle, and the citizenry at large, as we live with higher levels of pollution and the planet fries. CT dealers sold an average of 1.3 EVs each in 2020 (as reported in Treehugger.com). That level of ineptitude and disingenuousness means that we can watch as the goal the state has set for itself of 500,000 registered EVs by 2030 recedes over the horizon. At this point, it is less a question of whether CT will hit that goal, than by how much we will miss it. It is fine to sign a memorandum of understanding, as the state did to much fanfare with the MultiState Zero Emission Vehicle Action Plan MOU, but without adequate legislation and policy, nobody should be surprised when there are no results.

This legislative session was pretty much a bust when it came to environmental legislation. Not only did the EV Freedom bill fail, so did the Transportation Climate Initiative, and the authorization for DEEP to look at implementing California standards for medium and heavy-duty vehicles. Even in a state that thinks of itself as progressive, entrenched interests can still act against the public good.

In the case of the EV Freedom Bill, SB 127, which was the one the club devoted much of its efforts to support, the bill passed out of the Transportation Committee by a 25-10 vote, but then stalled in the Senate. Had it passed the Senate, an equally contentious adventure loomed in the House.

We were told that our efforts fell just short in the Senate. Legislators, Tesla, and Rivian all said that the grassroots effort made a difference. But we’re obviously not quite there.

If there is anything good to be said of this effort, it is that the various advocacy groups we worked with, from the Tesla Club to the members of the EV Coalition, collaborated really well together. And we found some new partners in the Electrification Coalition, the IBEW (electrical workers union), and new manufacturers, Rivian and Lucid.

Senator Haskell plans to introduce the bill again in January. His task was made more difficult this year by the fact that he did not become chairman of the Transportation Committee until halfway through the session. His advice for next year is similar to this year: Contact your representatives. It is fine to do this out of session. If you can build a personal relationship, so much the better. They need to hear from constituents.

This bill has overwhelming public support. And there are more of us every year.

All You Need to Know About EV Incentives and Free Charging Opportunities

Virtual webinar: July 27th at 7 PM. Free registration is required:

https://us02web.zoom.us/webinar/register/WN_3fImyGBzT4yzOzrxe-x5Lg

The EV Club will be jointly producing and sponsoring a virtual webinar about the latest in incentives and free charging. Specifically, these are federal and state purchase incentives, incentives that reduce the cost of the electricity used to charge your electric vehicle, incentives to defray the cost of buying EV charging equipment, and free charging opportunities.

The incentives around EVs and charging are fluid.

The state recently implemented a number of changes to its CHEAPR EV purchase incentive program.

There is an expectation that either included or alongside the Biden Administration infrastructure plan, there will be an updated federal purchase incentive. The bill that was reported out of the Senate Finance Committee looks very good, but it could change considerably as it makes its way through the legislature. There is also a federal tax credit for the purchase of an EV charging station that is due to expire at the end of this year. We are waiting to see if that resurfaces. The President and the leaders of the two chambers have talked about getting this done before the August recess. It may be cutting it close, but we are hopeful that the contours of the new plans will be known by the end of July.

The Public Utilities Regulatory Authority is in the process of adjudicating a new EV rate design that would include lower rates to charge an EV as well as subsidies for charging hardware. A preliminary document was issued on June 17th. The final document is due July 14th. This is a complex piece of regulation, but we will provide the key highlights for the webinar.

Two members of EV Club leadership team to participate in a panel organized by Save the Sound

There is a panel (free registration) scheduled for Friday, May 21st at 12:00 PM, lasting for about an hour. The subjects being discussed are three key pieces of legislation that are still pending before the legislature. Club president, Barry Kresch, and leadership team member, Larry Thompson will be participants. Our friends at Save the Sound have organized this.

Katie Dykes – Chair of CT DEEP will discuss SB 931, which would evaluate whether to apply California emission requirements for medium and heavy-duty vehicles to CT.

Barry Kresch – President of EV Club CT will discuss SB 127, which would allow EV exclusive manufacturers to open stores in CT.

Kai Addae – Bradley Street Bicycle Co-op, will discuss SB 884, the Transportation Climate Initiative cap and invest program for carbon emissions.

Larry Thompson is the panel moderator.

This is a virtual panel. The registration link:

https://us02web.zoom.us/meeting/register/tZItc–vqjIuE9ycEWdybT_Rx98iEyg8fU82

Dealers Pressure Plug In America to Back Away From Direct Sales

Plug In America (PIA) has up until now played an important advocacy role in the effort to pass SB 127 in Connecticut and similar direct sales laws in other states. They acted as a clearinghouse for a lot of information from economists, academics and others that supported our arguments for EV Freedom, and did a lot of coordinating between the numerous parties involved, including the EV Club, manufacturers, environmental organizations, lobbyists, among others.

As of now, however, the coordination Zooms have stopped and the content has been removed from the PIA website. We had copies of some of the content, and what we have is now posted on the EV Club website.

PIA has a business called PlugStar. It is a training program to help dealerships become more effective at selling EVs. The dealers pay for this and it is a meaningful revenue stream for PIA. The dealers threatened to terminate their arrangements with PlugStar unless PIA stopped supporting direct sales. The board of PIA has caved and directed that the ongoing advocacy efforts in this area cease. This is not just a CT thing.

Needless to say, those of us in the EV community were gobsmacked by this “pulling the rug out from under” move at a critical time. And we’re surprised the organization doesn’t have bylaws in place to provide separation and deal with what seems an obvious potential for conflict. We blame PIA for compromising their principles, but, of course, it was the dealers that put them in this position. They show their colors that competition is good for everyone except themselves.

This is from the PIA website:

Plug In America is a non-profit, supporter-driven advocacy group. We are the voice of plug-in vehicle drivers across the country.

It is clear that the position they are taking runs counter to their mission and that they have now become the voice of entrenched interests blocking progress.

Our club would like to see dealers up their game when it comes to selling EVs, but we don’t agree with the franchise laws being used to stifle competition. The majority of EV sales, both nationally and in CT, are from direct sales.

To the extent that club members and readers of this blog donate to PIA, we recommend sending those funds to other organizations instead. You can find a long list of worthy options in the CT Electric Vehicle Coalition.

The EV Club has also filed a Freedom on Information Act Request to obtain the relevant backup documents underlying the decision.

This Bill is Pro EV and Pro CT

A poll released by the Electric Vehicle (EV) Club of Connecticut shows that a significant majority of Connecticut residents support direct sales from Electric Vehicle companies. 83% of respondents support direct sales of electric vehicles to consumers, and only 17% oppose it.  Support for direct sales is bipartisan, broad, and deep across many different demographics and all sections of Connecticut.

Support for direct sales is growing throughout the state of Connecticut and nationwide. Last week, two letters were released—one from a broad coalition of 27 interest groups representing environmental, free-market, pro-innovation, labor, and consumer protection;  another from 75 leading academics—both urging state governments to remove restrictions on direct sales and service of electric vehicles. Among the academic signers of the letter were 7 former chief economists of the Federal Trade Commission and Department of Justice, and one Nobel Laureate.

Transportation Committee Chair Senator Will Haskell stated, “This poll is astounding. It turns out that the Connecticut State Capitol is the only place where selling Electric Vehicles directly to consumers is controversial. It’s time for the legislature to listen to the will of the public, pave the way for 21rst Century jobs, and give consumers a choice as to where they buy their next car.”

Barry Kresch, President of the EV Club of Connecticut noted, “These results, while overwhelmingly favorable, are not a surprise. This is exactly what I hear all the time on a more informal basis. It is reflected in the fact that everyone who testified at the public hearings who was not associated with a dealership was in favor of the bill. I get asked all the time why we force people to go out of state to buy the EV of their choice. It’s time we listen to consumers, accelerate EV adoption, and embrace innovation.”

“The poll conducted by GQR is proof positive that Connecticut consumers believe in the freedom to choose how they wish to purchase their vehicles,” said James Chen, Vice President of Public Policy at Rivian Automotive. “Senate Bill 127, which would allow the direct sales of electric vehicles in the state of Connecticut would be an obvious win-win for Connecticut drivers, the free-market, and the state’s environmental goals.”

GQR conducted a survey of 500 likely 2022 general election voters in Connecticut from April 16-18, 2021. The survey was conducted via cell phones using a text-to-web platform. The margin of error is +/- 4.4 percentage points at the 95 percent confidence interval; the margin of error is higher among subgroups. Electric Vehicle (EV) manufacturers Lucid Motors, Rivian, and Tesla sponsored the poll.

This is the question wording: “As you may know, the Connecticut General Assembly is considering a bill to change existing laws related to vehicle sales. This bill will allow electric-vehicle manufacturers such as Tesla, Rivian, and Lucid to open their own brick-and-mortar stores in the state, where they can sell vehicles directly to consumers rather than going through traditional car dealerships. Do you support or oppose this bill to allow direct sales from electric-vehicle manufacturers in Connecticut?”

About GQR: “For almost four decades, we have used innovative polling and opinion research to help leading candidates, parties, government leaders, corporations, and advocacy groups across the United States and around the world.”

Join the EV Club for our next Zoom meeting on April 15th at 6:45 when U.S. Representative Jim Himes of Connecticut’s fourth congressional district will speak to us about what we can expect for EV policy as the Biden Administration pushes major infrastructure legislation. The Congressman was first elected to his current position in 2008 and has been a supporter of progressive environmental policies.

We have only a limited amount of time with him, 30 minutes, and I am looking to have questions teed up for him because it will be too much to try and traffic cop in that limited time. Some of the things that are pending are modification of the federal EV purchase incentive, an updated cash for clunkers, EVSE infrastructure, EVs in the federal fleet, changes to CAFE, MHD standards, and other possible policy levers.

Registration required:

https://us02web.zoom.us/meeting/register/tZMlf-6hqzIrHtSyDlPHR4Cht011A0wdRhZn

If anyone would like to suggest a question, please do so in the comments or via the contact form.