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Pa. PUC Adopts Policy Encouraging Utilities To Develop Default Service Rates Specifically For EV Charging
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The Pennsylvania PUC is encouraging electric utilities to design default service generation rates specific to electric vehicle charging
In a final policy statement, issued today, concerning utility rate design for EVs which includes such encouragement to all of the EDCs in the state, the PUC further states that the default service EV rates should reflect, "cost-of-service principles as well as the cost of electricity, maintenance, and administrative expenses in a manner that avoids unreasonable cross-subsidization between customers."
The PUC further states that the EV default service rates should signal to EV customers and incentivize EV customers' usage patterns for more efficient capacity utilization of the distribution grid (which the PUC notes may not necessarily align with simply minimizing peak load)
The PUC's final policy statement does not strictly encourage variable or time of use rates for EV charging default service
Rather, the PUC more broadly adopts a policy, for SOS rate-setting, of encouraging, "consideration of load factors and charging time adjustments to accommodate system needs."
The PUC stressed that EDCs are not limited to TOU rates for EV default service, as the PUC noted comments from stakeholders about potential other alternatives. The policy statement will provide flexibility regarding the specific rate design to achieve the policy considerations cited above
The PUC also states, "We also recommend that electric distribution companies develop electric-vehicle charging default service generation rates that, at a minimum, properly reflect the cost of generation services during times of system stress."
"The Commission recommends that electric-vehicle charging distribution and default service generation rates be designed to promote fairness and equity," the PUC further states
The PUC denied several modifications or additions sought by retail suppliers with respect to the EV charging policy statement
The PUC said that the policy statement does not preclude competition in the EV charging or service market, and denied suggestions from RESA/NRG to add specific language recognizing a competitive market for EV charging services
Among other things, the PUC declined to adopt proposed language from RESA and NRG that would have explicitly provided that a customer choosing to be served on an EV-specific delivery rate would not be prevented from shopping for a competitive retail supplier for their generation service
The PUC declined to adopt the following language from RESA/NRG:
"The Commission also supports the development of competitive market energy supply products to provide further benefits in support of electric vehicle development"
"[E]lectric distribution companies shall make available to the competitive market the needed processes and systems and avoid designs which may impede competitive market development."
"The distribution and default service generation electric vehicle charging tariff rate structures shall not foreclose the ability of competitive energy suppliers to offer products and services to electric vehicle charging customers nor shall the electric distribution companies withhold access to information, systems and processes necessary for electric generation suppliers to offer such products."
"Choosing the distribution rate product may not preclude an electric vehicle customer from shopping and, likewise, any default service generation rate
intended for electric vehicle charging customers shall not interfere with the development of competitive rates by electric generation suppliers."
The PUC also denied the RESA/NRG suggestion to require EDCs to, as part of EV outreach and education, inform customers about competitive retail offers
The PUC further declined to require that EDCs collaborate with retail suppliers offering EV-specific rates or products, as part of the EDCs' development of EV outreach plans
Docket M-2023-3040755
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January 7, 2025
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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