Arizona Public Service Company daytime charging program approved to incentivize electric vehicles

In a move meant to encourage elective vehicle (EV) adoption, a new daytime charging tariff from Arizona Public Service Company (APS) was approved by regulators at the Arizona Corporation Commission this week.

The move sets up two schedule slots: off-peak and on-peak hours. Off-peak hours run from 9 a.m. to 3 p.m., when solar energy production is at its highest, while on-peak hours cover the remainder of the day when electric generation tends to be more costly. As a result of the new tariff, EV owners will be eligible for discounts up to $0.04223 per kW hour if they charge their EVs at commercial centers during off-peak hours.

While recognizing it’s not the most convenient path for car owners, regulators decided it was the most sensible, as it capitalizes on periods when solar is most abundant.

“Programs like this are vital to ensuring that our utilities can support the growing adoption of electric vehicles with renewable solar energy,” Commission Chairwoman Márquez Peterson said. “This provides an incentive for businesses, retail locations, and commercial establishments to add an additional amenity that can help to attract new customers and provide a benefit to employees. By encouraging businesses to install charging stations, the program can make it easier and more affordable for employers to offer workplace charging while making it more cost-effective to attract new customers to commercial establishments.”

Regulators also hope this will promote load building, evening out the amount of electricity generated throughout the day and decreasing the total cost for electric utilities by shifting energy usage away from expensive peak hours. In so doing, the commission added that savings could ultimately be passed onto customers.

The tariff could also complement another program for residential customers, incentivizing EV owners to charge during off-peak hours late at night. In this way, the existing EV charging rate could allow customers to take advantage of lower rates at night, then benefit from similarly lower rates during the day at work.