(Editor’s note: The author is running for re-election to the Georgia Public Service Commission. We will occasionally publish op-eds from all the Republican and Democrat PSC candidates.)
As the federal government prepares to divvy up funds from the bipartisan infrastructure bill, Georgia is gearing up to implement its share of the $5 billion dedicated to building out electric vehicle (EV) infrastructure. With EV sales set to break records in 2022, it’s imperative that our state develops plans for using funds as soon as they’re distributed in a way that will effectively increase the total number of EV charging stations.
The need for an expanded national EV charging network is part of the reason the United States Conference of Mayors (USCM) announced the formation of a Task Force on Electric Vehicles chaired by the mayors of Oklahoma City, Oklahoma, Youngstown, Ohio, and Austin, Texas. While this task force intends to partner with the private sector to advance EV infrastructure, it’s crucial they also address demand charges levied by certain utility companies that unfairly force many small businesses out of the EV charging marketplace and hamper the deployment of charging stations.
Demand charges are additional fees that electric utilities add to a customer’s bill anytime their energy usage spikes in a given period of time. As a result, many businesses and ratepayers hosting DC fast-charging stations incur a demand charge almost every time their station is in use due to the quick draw of electricity.
This cycle of frequent demand charges unfairly burdens small businesses and storefronts where a long-term charge isn’t applicable. By failing to adjust their rate structures, some utility companies levy demand charges that often outweigh the profit earned from hosting a charging station, forcing many small businesses to close their charging stations despite their immense upfront costs – or never install one in the first place.
With less than 6,000 fast-charging stations in the country compared to over 150,000 fuel stops, local officials must work with state lawmakers to remove barriers for those seeking to host and operate EV charging stations. Small fuel stops have the unique potential to expand EV infrastructure into rural and underserved communities, considering they already serve a nationwide network of fossil fuel-powered vehicles.
However, given their control over electricity, some utilities continue to expand their control over the EV charging marketplace while small businesses have no choice but to pay the fees or falter. Electric utilities are not subject to their own demand charges and are often the first to take state or federal dollars to subsidize more charging stations, making it very difficult for the private sector to compete.
In New York, state legislators worked to eliminate a demand-based rate structure by passing legislation that requires utilities to submit to the Public Service Commission alternative rate structures for EV charging, including for a wide variety of EV classifications. This follows a similar decision by the Regulatory Commission of Alaska that required its utilities to resubmit rate structure plans that remove demand charges for EV chargers in order to better allow businesses to host charging stations.
The USCM insists its new Task Force on Electric Vehicles will “advocate for public policy solutions [that] help expedite [a] historic shift in the U.S. transportation system,” and these examples from two vastly different states could serve as an ideal place to jumpstart these efforts. American cities like Atlanta are on the front lines of implementing charging infrastructure to best serve their communities, and with federal dollars coming down the pipe to support this progress, it’s critical that states and localities work to ensure a fair and competitive EV charging marketplace that promotes EV infrastructure expansion.
