Despite their customers' increasing purchases of electric vehicles, or EVs, and major commitments by automakers to roll out more electrified models, nearly three-quarters of U.S. electric utilities are either in the very early stages of planning for integrating EVs and charging stations into grid operations or are not doing any planning at all, the Smart Electric Power Alliance found in a new report.
Based on a survey of 486 utilities that serve about 70% of residential, commercial and industrial customers in the U.S., the report, released March 13, found that just 3% of utilities are in the advanced stages of planning for the coming surge in EVs, with long-term strategies in place and pilot programs under way to manage charging or to test vehicles as flexible grid resources. Another 23% are in the "intermediate" stages of EV or grid integration and are initiating EV or charging programs.
Large, heavily regulated investor-owned utilities are among those most prepared, while municipal utilities and electric cooperatives tend to be in the early or intermediate planning steps. Some utilities are ahead of the pack, however.
Austin Energy, for instance, which offers customers unlimited charging at fixed monthly rates for public and home-based charging, is exploring how to use EVs in its service territory for demand response, the report noted. Another utility in the advanced planning stage is Sempra Energy's San Diego Gas & Electric Co., or SDG&E, which offers charging access to customers in multiunit dwellings and at work, with an EV rate structure based on the hourly cost of electricity. Through its "Power Your Drive" program, SDG&E is installing up to 3,500 charging stations. California regulators also recently approved a host of pilot programs for SDG&E and other California utilities to help electrify heavy-duty trucks, buses and commercial vehicles.
Despite such efforts, many utilities are not yet taking the EV revolution seriously — reminiscent of how the rise of distributed solar caught many off guard, noted the report. "If predictions are correct, many utilities will be caught unprepared, with few ready to take full advantage of this new demand by leveraging EVs as a grid asset," noted Erika Myers, Smart Electric Power Alliance's research director, in a press release. EV energy use in the U.S. could jump from just a few terrawatt-hours a year in 2017 to at least 118 TWh and as much as 733 TWh by 2030, according to the report.
In addition to the survey, the report also quantifies the growing number of regulatory dockets involving electric vehicles and charging infrastructure around the U.S., including 13 open dockets, nine dockets opened in 2016 that had closed by the end of 2017 and a total of 57 dockets since 2010. Most of the proceedings involve larger utility investments or increased regulatory oversight of EV rates, customer outreach, and public and fleet charging.
