New Report Shows Most US Utilities Unprepared for EV Onslaught

Based on a survey of 486 utilities the report, “Utilities and Electric Vehicles: Evolving to unlock grid value,” states that nearly 75 percent were either in the early stages of planning for EV market growth or had yet to start developing strategies or programs. The utilities surveyed provide power to about 70 percent of all residential, commercial, and industrial customers in the United States.

“Utilities have a key role to play in EV market growth, as providers of ‘fuel’ -- electricity -- as a platform for charging infrastructure, and as a leader in standards development and consumer education,” said Erika Myers, SEPA’s Director of Research and lead author on the report. “Yet, our research shows that the situation right now is similar to what we saw with the growth of distributed solar. 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.”

Other key findings in the report include:

• Analysts now forecast that EV energy use could rise from a few TWh a year in 2017 to at least 118 TWh and as high as 733 TWh by 2030. These forecasts are the equivalent of the average annual power consumption of 9 million to 68 million U.S. homes, respectively.
• With the utilities surveyed classified as either in an Early, Intermediate or Late Stage of EV program development, only 3 percent were in the Late Stage, while 23 percent were Intermediate and 74 percent were Early.
• Larger investor-owned utilities (often as a result of regulatory or legislative mandates) were more likely to be in the Late Stage, while municipal utilities and electric cooperatives serving smaller customer bases tended to be classified as Intermediate or Early.
• Regulatory action related to EVs and charging infrastructure remains dispersed and uneven. Regulatory filings are clustered primarily in states with high numbers of EVs or pro-EV policies, and include dockets on utility programs associated with Intermediate or Late stages. Utility ownership of EV charging systems is a particular point of discussion among regulators.
•  To promote the development of robust EV strategies, utilities should collaborate with stakeholders across the industry; mitigate and manage grid impacts of EV adoption; and share information and best practices to cut the time and cost of new EV programs.

The report also highlights examples of utility programs across the country, reflecting different stages of EV program development. San Diego Gas & Electric has one of the highest total number of EV programs and activities accounted for in the research. The utility’s Power Your Drive program allows customers in apartments and condominiums, or at businesses, to access charging stations that use an EV rate that is based on actual, day-ahead hourly pricing. Customers can use a phone app to enter their time preferences, giving them the option to save money by charging during the lowest-price hours of the day.

“Utilities and Electric Vehicles: Evolving to unlock grid value” is available for free download here. The primary data from the survey results will be available to SEPA members.