Electric utilities highlight EV investments during National Drive Electric Week
As National Drive Electric Week shifts into gear, the nation’s electric companies are investing more than $3 billion in electric vehicle (EV) charging infrastructure and customer programs to accelerate transportation electrification and reduce carbon emissions.
The 11th annual event that started Sept. 25 and runs through Oct. 3 features more than 200 electric vehicle events throughout the country designed to highlight the environmental, economic, and customer benefits of electric transportation.
Electric and gas utility Entergy New Orleans, for example, co-hosted an EV showcase event with the city of New Orleans and the Southeast Louisiana Clean Fuel Partnership at Loyola University that gave residents access to different EV models.
“Our continued partnership with the City of New Orleans allows us to provide equitable access to electric vehicles charging stations across the city and furthers our progress in combatting climate change,” said Seth Cureington, Entergy New Orleans director of Economic Development and Technology Innovation.
This year could be a pivotal one for EVs. President Joe Biden has proposed $174 billion in funding to advance transportation electrification. More widespread adoption of clean EVs could help curb air pollution from the transportation sector, currently the largest source of carbon emissions in the United States.
Electric utilities are considered critical players in driving transportation electrification, along with municipalities, charging station manufacturers, EV network providers, and other stakeholders that are working to provide the EV charging infrastructure that’s needed in public areas, homes and places of business.
The efforts are paying off. According to a new electric transportation fact sheet from the Edison Electric Institute (EEI), which represents the nation’s investor-owned electric companies, there are more than 2 million EVs on U.S. roads as of September.
“EEI celebrated back in November of 2018 when, after 8 years, it looked like EV sales passed 1 million. It took just another 3 years after that to get to 2 million. So, we’re seeing things accelerate,” said Kellen Schefter, director of Electric Transportation at EEI.
By 2030, 9.6 million charging stations will be needed to support 18.7 million EVs on U.S. roads, according to EEI’s forecast.
Schefter said a top accomplishment for utility companies has been approvals from state utility commissions to fund local transportation electrification projects.
“From the electric company perspective, the regulatory approval across the country of more than $3 billion is a pretty major milestone for us,” Schefter said.
Last week, for instance, the Minnesota Public Utilities Commission (PUC) approved Minnesota Power’s EV charging infrastructure proposal to build 16 fast chargers throughout its service territory in northeastern Minnesota.
“Minnesota Power has put forward a well-reasoned plan to provide more EV chargers across Northeastern Minnesota and lower barriers to EV adoption for Minnesotans,” said Minnesota PUC Commissioner Matthew Schuerger. “This proposal also works to reduce consumer concerns about not knowing where to charge their EV while traveling in rural Minnesota.”
Initiatives to grow the adoption of EVs is occurring in many other states as well.
Georgia Power announced in August that it had recently invested in several fast-charger additions in rural areas of Georgia to make it easier to travel across the state in zero-emission EVs.
Xcel Energy recently unveiled four new residential EV charging programs for Colorado customers, including a program where eligible customers can have faster Level 2 chargers installed at home for a low monthly fee.
And Portland, Oregon-based Portland General Electric in July launched a new pilot program called PGE Fleet Partner to help businesses and organizations electrify their fleets.
These singular efforts will soon be compounded. Fifteen U.S. utilities have teamed up to form the Electric Highway Coalition, an effort to build a seamless network of fast-charging stations on highways connecting the Atlantic Coast through the Midwest, South and into the Gulf and Central Plains regions.
Meanwhile, federal policies that make the purchase of EVs more attractive to a wide range of customers is another strategy to expand EV adoption rates.
There are currently a number of proposals being debated in Congress to support EVs through new tax incentives. On Saturday, the U.S. House Budget Committee passed a $3.5 trillion budget reconciliation package that includes a provision to expand the tax credit for EVs. The current $7,500 EV tax credit would rise through generous add-ons for union-built vehicles and domestic content. Credits would also be available for used vehicles. There are conditions, on total price and buyers’ incomes, but the incentives are striking. Also of note, the credits extend to commercial vehicles and fleet operations. The budget package now moves to the floor of the U.S. House of Representatives for a full vote.
Federal investments in expanded charging infrastructure will help overcome a key barrier for consumers who have range anxiety. Likewise, vehicle cost is another roadblock. “Our perspective is if those tax credits can help overcome that barrier, then that’s important,” Schefter added.
Schefter emphasized that while utilities are focused on charging infrastructure – “where the vehicle meets the grid” – the chance for broader programmatic funding is important. “Our key point is that this is really an all-hands-on-deck effort.” If there’s one thing electric utilities are really focused on for National Drive Electric Week, “it is how we all collaborate to make sure those federal dollars that could be coming go as far as possible.”
Alleyn Harned, executive director of Virginia Clean Cities, a “community partner” supporter of National Drive Electric Week, is also keeping a close eye on developments in Congress pertaining to EVs. “These vehicles are still more expensive and tax credits are important,” Harned said.
Virginia Clean Cities is a program that works with the U.S. Department of Energy on deployment of alternative fuel vehicles and infrastructure, education programs, and other petroleum-reduction activities.
A big development on the horizon, Harned explained, “is that Virginia will join the other states that have EV sales targets. That’s when sales will really pick up,” he predicted. Harned was referring to new legislation directing the state Air Pollution Control Board to adopt California’s vehicle standards that set binding targets for EV sales as a proportion of all automobile sales. Harned said the first target is for EVs to be 8 percent of sales; the target escalates for future years. “This should get us to 10 percent EVs by the end of this decade,” Harned added.
For National Drive Electric Week, Virginia Clean Cities is partnering with Virginia auto dealers to showcase EVs. “This will be an innovative ecosystem,” Harned said of the partnership. It will provide a chance to connect dealers, customers, charging infrastructure and the electric utilities.
