E E I | E L E C T R I C V E H I C L E T R E N D S & K E Y I S S U E S

1

C U S T O M E R S O L U T I O N SElectric Transportation

Sources: InsideEVs.com and HybridCars.com

Electric Vehicle Trends & Key Issues December 2018

K E Y F A C T S

¡ The split between Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) shifted toward BEVs in 2018. This shift is largely due to increased sales from Tesla. EV sales were split about evenly between PHEVs (48%) and BEVs (52%) in 2017.

¡ In 2018, BEVs made up about 63% of all EV sales. PHEVs, which have a gasoline engine in addition to a battery, made up about 37% of EV sales.

K E Y F A C T S

¡ About 1,035,000 electric vehicles (EVs) are on the road in the U.S. (through October 2018).

¡ Overall, 2018 sales are up 72% compared to 2017.

¡ EVs as a share of all new car sales surpassed 3% for the first time in September, a major milestone for EV adoption.

E L E C T R I C V E H I C L E S O N T H E R O A D

T R E N D S

More than 1 Million EVs Are on the Road in the U.S.

Nu

mb

er

of

EV

s

BEVs63%

PHEVs37%

BEV and PHEV Share of EV Sales in 2018

0100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

20182017201620152014201320122011

2 | E E I | E L E C T R I C V E H I C L E T R E N D S & K E Y I S S U E S

S T A T E R E G U L A T I O N

P Approval On September 10, 2018, the Massachusetts Department of Public Utilities approved National Grid’s three-year, $21 million EV Program that will provide customers with incentives to install up to 600 Level 2 charging stations and 80 DC fast charging (DCFC) stations at public locations, workplaces, and multi-family dwellings (Docket 17-13). On November 15, 2018, National Grid submitted a five-year, $166.5 million Phase II EV Program that includes assistance in deploying 17,700 charging ports; methods for encouraging off-peak home charging; and approaches to improve EV access in disadvantaged communities. (Docket 18-150)

P Approval On November 8, 2018, the Michigan Public Service Commission approved AEP – Indiana Michigan Power Company’s (I&M's) revised residential EV rate, “Tariff RS-PEV.” A new option allows EV electricity usage to be charged a time-of-use (TOU) rate. The customer’s full residential usage is billed at the standard residential rate. The EV meter data then is used to increase or decrease the customer’s bill based on the on-peak/off-peak price differentials specific to the EV usage. (Docket U-20282)

¡ Proposal On October 26, 2018, Puget Sound Energy proposed an approximately $13 million pilot that includes education and outreach; charging for public, workplace, and multi-family buildings; and ways to improve access for low-income customers. The pilot also includes a residential charging component that seeks to identify methods to encourage off-peak charging. (Docket UE-180877)

¡ Proposal On October 12, 2018, Xcel Energy filed a $25 million EV program with the Minnesota Public Utilities Commission to increase charging avail-ability for fleets and public locations. Program offerings include: a fast charging corridor pilot; partnership with a non-profit car sharing service

to expand access to EV benefits for low-income customers; and charging infrastructure for Metro Transit’s first eight electric buses and the light duty fleets operated by the State of Minnesota and the City of Minneapolis. (Docket 18-643)

¡ Proposal On October 11, 2018, Public Service Electric and Gas (PSE&G), as part of its Clean Energy Future filing, submitted a $364 million EV program to the New Jersey Board of Public Utilities. The proposal includes supporting the deployment of nearly 40,000 EV chargers for residential, mixed-use, and public DCFC stations through a combina-tion of rebates; “make ready” infrastructure; and an option for PSE&G to own charging equipment if needed to meet program goals. Funding also will be available for customized electrification projects for airports, ports, other transit facilities, and grants for school districts for the purchase of electric school buses. (Docket EO1801111)

¡ Proposal On October 10, 2018, Duke Energy Caro-linas and Duke Energy Progress filed applica-tions with the South Carolina Public Service Commission for a three-year $10.4 million EV pilot. The pilot includes rebates and managed charging for up to 400 residential participants; financial support for 30 electric school buses and 30 electric transit buses; and the installa-tion and operation of 30 public DCFC stations. (Dockets 2018-321-E and 2018-322-E)

S T A T E P O L I C Y

¡ On September 13, 2018, California became the first state to enact a law that will quantify, regulate, and reduce the emissions from transportation network companies (TNCs). The new law requires state regulators to establish the CA Clean Miles Stan-dard and Incentive Program to increase zero-emis-sion vehicles (ZEVs) used by ride-sharing compa-nies, such as Uber and Lyft. The law is intended to help the state meet its goal of putting 5 million ZEVs on the road by 2030. (More detail: SB 1014)

P O L I C Y U P D AT E

S C H O O L B U S E S P R I M E D F O R E L E C T R I F I C A T I O N

School buses could be the next major growth market for electric transportation technology. Eliminating exhaust emissions in the proximity of school children is a clear motivation, but school buses also are well-suited to run on electricity: school buses run relatively short, fixed routes and spend plenty of time parked to allow for charging. What’s more, the large battery packs can act as storage devices that can deliver power to the energy grid when the buses are parked.

Electric school buses are more expensive, but states can help school districts go electric by using their Volkswagen diesel settlement funds to offset these costs.

Electric companies also can support school bus electrification. Two recent examples:

¡ Con Edison is partnering with the New York State Energy Research and Development Authority and transport operator National Express to deploy five electric school buses in the White Plains school district as part of a demonstration project. During the summer, the buses will become a storage asset that can provide 75 kilowatts (kW) to the energy grid. (More detail: Con Ed)

¡ Duke Energy’s proposed EV pilot in South Carolina (see policy section) will provide financial support for about 30 electric school buses and also will test the ability to dispatch power from the bus batteries back onto the energy grid. (More detail: Duke Energy)

C I T I E S A R E G E T T I N G “ E V R E A D Y "

The widespread availability of charging infra-structure is one of the keys to unlocking EV market growth. One way cities and states are preparing for future EV growth is to encourage newly constructed buildings, from workplaces to multi-family dwellings, to have conduit and suffi-cient electrical capacity to support EV charging

E E I | E L E C T R I C V E H I C L E T R E N D S & K E Y I S S U E S | 3

stations. It’s also a cost-effective solution: a study prepared for San Francisco, for example, found retrofitting charging infrastructure to be about three to four times more expensive than installa-tion during initial construction. (More detail: Study)

Cities and states are supporting EV readi-ness in new buildings in many ways, from adopting building codes to passing ordi-nances. Two recent examples include:

¡ The City of Atlanta passed ordinance 17-0-1654 in November 2017 that requires 20 percent of the parking spaces in all new commercial and multi-family parking struc-tures to have dedicated conduit and elec-trical panel capacity for the future installation of charging stations. The ordinance also requires all new residential home construc-tion to have a 240-volt, 40-amp circuit installed in the garage, which aligns well with Georgia Power’s rebate of up to $250 for customers who install a Level 2 charging station at home. (More detail: Atlanta)

¡ The California Green Building Code requires a certain percentage of parking spaces at new nonresidential and multi-family buildings to have conduit and sufficient electrical capacity to charge EVs at those spaces. Southern Cali-fornia Edison (SCE) is encouraging developers of new multi-family dwellings to go beyond code, and included a new construction rebate in its Charge Ready 2 proposal to help pay for the cost of installing charging stations at these multi-family dwelling sites. (More detail: SCE)

O U R TA K E

Edison Electric Institute701 Pennsylvania Avenue, NWWashington, DC 20004-2696202-508-5000 | www.eei.org December 2018

F L O R I D A P O W E R A N D L I G H T

Florida Power and Light Company (FPL) is a leader in promoting the adoption of EVs for company use and for its employees and customers. To measure potential adoption rates, FPL launched a Workplace Charging Program pilot with employees in 2015. The company installed charging stations at various FPL corporate loca-tions to offer employees, contractors, retirees, and pre-arranged visitors the ability to plug in. FPL’s Workplace Charging Program was promoted through the “Boost Your Commute” campaign, which included on-campus ride-and-drive events, helping to increase partici-pation from 13 to 197 participants since the program launched.

N A T I O N A L G R I D

National Grid’s recently launched internal EV adoption program is off to a strong start, helping to facilitate the sale of more than 200 EVs to employees within the first six months. National Grid provides employees with an “EV Central” website to learn about the benefits of the technology, as well as a $5,000 incentive. The company also has installed charging stations at 20 of its facilities, with more planned.

P O R T L A N D G E N E R A L E L E C T R I C

Employees who take advantage of Portland General Electric’s $2,000 incentive for a new EV (or $1,000 for a used or leased EV) also are enrolled in a research project to study charging behavior. Employees randomly selected to use a time-of-use rate will be compared to those on a standard rate, while some will participate in demand response events. The research project, which recently wrapped up, will inform future program design. Portland General Electric also has installed 93 workplace charging stations at 20 company sites.

MEMBER SPOTLIGHT: ELECTRIC COMPANY EMPLOYEES LEADING BY EXAMPLE

Encouraging EV adoption at the workplace is a powerful EV market education tool. Employees who drive EVs become ambassadors for the technology within their communities. Electric companies are leading the way by providing educational resources, workplace charging, and, in some cases, incentives to employees who choose to drive an EV. These employee programs also help electric companies develop effective customer programs, focused on education and outreach and charging infrastructure deployment.