California approves new rates for electric vehicles

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The California Public Utilities Commission (CPUC) today approved new temporary experimental rates for plug-in electric vehicles for San Diego Gas and Electric Company (SDG&E) customers as part of the utility's Pricing and Technology Study. The Study will be performed by SDG&E, in collaboration with ECOtality, Inc. and Nissan. The experimental rate schedules will begin January 1, 2011, and will remain in effect until November 30, 2012 (or until the completion of the Study). ECOtality was the recipient of a U.S. Department of Energy stimulus grant to fund the deployment of electric vehicles and charging systems in five U.S. cities, including San Diego. "The Study will help the state better understand the impacts of different rate structures on how and when customers charge electric vehicles," said CPUC President Michael R. Peevey. "This information is critically important as we contemplate a future with widespread electric vehicle usage, given the additional electricity demand these vehicles create and the associated impacts on the grid. Studies like this can help facilitate a smooth transition as increasing numbers of electric vehicles enter the market."

Through the ECOtality project, the first 1,000 purchasers of Nissan LEAF electric vehicles in San Diego will receive free home charging equipment. Each Nissan car owner will also become a participant in SDG&E's Pricing and Technology Study. The objective of the Study is to benefit California's understanding of how electric vehicles interact with the electric grid. The Study's working hypothesis is that greater variations in time-varying pricing, together with the use of accommodative vehicle technology, will shift more charging activity to off-peak periods.

The CPUC opened a proceeding on August 24, 2009, to develop policies to prepare the state's utilities for a greater number of electric and natural gas vehicles. "The CPUC recognizes the societal benefits of alternative-fueled vehicles in achieving California's climate change goals. Understanding how consumers use their electric vehicles and respond to price signals is the key to successful reintroduction of electric vehicles in California," said Commissioner Nancy E. Ryan, the Commissioner assigned to the alternative-fueled vehicle proceeding. "The CPUC also seeks to ensure that the charging of these vehicles occurs safely and in a manner that is compatible with the utilities' electrical infrastructure."

In 2009, Senate Bill 626 (Kehoe D-San Diego) directed the CPUC to evaluate policies to develop infrastructure sufficient to overcome any barriers to the widespread deployment and use of plug-in and electric vehicles, and to adopt rules by July 1, 2011, on specified matters, including infrastructure upgrades necessary for the widespread use of plug-in hybrid and electric vehicles, amongst other topics.

The proposal voted on is available at http://docs.cpuc.ca.gov/word_pdf/AGENDA_RESOLUTION/119477.pdf.

Source: California Public Utilities Commission