Category Archives: DC FC

Drive Electric Maine- Love It’s What Makes an EV, an EV.

 

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New England, particularly northern New England states like Maine, has been late to the party called “electric vehicles”.  As a native New Englander, I can think of many reasons for this tentativeness. We tend to be cautious, wary of new ideas. Given our economy we aren’t prone to fads.  We just don’t throw money at a product because it enhances our status.  It has to prove itself.   EVs are still considered new.  They cost a bit more, up front.  We can’t determine whether they are a real, or something worth serious interest. The media doesn’t help much in offering objective analysis (probably the case for media anywhere nowadays).  We have concerns over cold-weather impacts on their batteries.  We have concerns about their range.  We just don’t see many of them in the wild so we don’t’ personally know many people who drive them. We wonder how we’re supposed to keep them charged- we don’t see much public charging station infrastructure.  In truth, these are all reasonable concerns.  However, once any new technology proves itself here, we become true believers and it becomes part of our lives.  Think about how the Suburu brand has captured New Englander’s loyalty. Love- it’s what makes a Suburu, a Suburu.

Last week was a watershed moment in Maine’s journey toward transportation electrification. We convened a large group of energized stakeholders from all walks interested in putting more cars on the road.  The group included our largest electric utilities (Central Maine Power, Emera Maine), public health folks (American Lung Association of the Northeast), large employers (Delhaize/Hannaford), Maine Innkeepers Association, Green Campuses, local governments, including Portland and South Portland, and, perhaps most importantly, the Governor’s Energy Office and critical state agencies interested in growing opportunities to electrify Maine’s major travel corridors.  These are folks who drive EVs, who have a specific interest in their benefits, who see the potential for transforming Maine’s economy, environment and communities by weaning us off oil.

We will be focusing on impactful projects that raise visibility and consumer deployment of this technology.   In particular, we want to grow workplace charging, create charging opportunities for tourists and commercial businesses, and assist utilities in pilot projects and outreach.  By keeping the emphasis on projects, not policy, we want to thread the political needle and leverage private investment as much as we can to show this technology can stand on its feet and meet the needs of consumers while helping our communities breathe cleaner air, save money, and keep Maine’s environmental beautiful for future generations.  While these are lofty aspirations, Maine has great people who care about each other and our natural beauty- these are really our best assets.

Here is our current list of stakeholders:

Acadia Center

American Lung Association of the Northeast

Avangrid Foundation

Central Maine Power

City of Portland

City of South Portland

E2Tech

Conservation Law Foundation

Delhaize/Hannaford

Electric Mobility NE

Emera Maine

Governor’s Energy Office

Greater Portland Council of GOvernments

Greater Portland Convention & Visitors Bureau

Green Campuses

International Brotherhood of Electrical Workers

Maine Auto Dealers Association

Maine Clean Communtiies

Maine Department of Environmental Protection

Maine Department of Transportation

Maine Innkeepers Association

Maine Turnpike Authority

Natural Resources Council of MAine

ReVision Energy

Sierra Club

Sunrun, Inc.

University of Maine

What will be our definition of success? Getting 10,000 cars with plugs on our roads by 2020? Electrifying our I-95 corridor with DC Fast Chargers for our local communities and visiting tourists ?  Creating a dynamic public charging space in our major cities?  Focusing on helping our large employer workplaces get chargers?

Or perhaps our success will be achieved when we re-define what our love of transportation means.  Love, what makes an EV, an EV.  No smoke, no gas, no irreversible climate change.  Does your Suburu do that? Then maybe you should ask them what love really means.

The EV Project- It’s Time to Grow Up

We had lived in a world of petroleum-based energy for so long that we could not see the horizon through its particulate-laden fog- until President Obama diverted part of his ARRA-funding and solicited bids for overseeing the first national scale investment into electric vehicle charging infrastructure promising deployment and data collection- the EV Project.  Enter ECOtality, the winning grantee. What followed has been nothing short of the jumpstarting of a new transportation technology and the construction of a foundation for this technology–the beginning of this immense national transformation of our transportation/energy system.  And we must be grateful for ECOtality’s efforts to seed public infrastructure into various politically receptive ecosystems. This has been a tremendous start on the path to the future.

Now that the 2012 Presidential election has been held, and energy independence will NOT mean fracking, pipelines, and drilling, what is the best path forward for EV infrastructure?  Well, its time to grow up.

We need to stop providing unilaterally allocated federal subsidies benefitting a narrow slice of the industry (i.e. ECOtality, Coulombe, AV).  Infrastructure should expand beyond the heavily weighted models favoring public charging, with expensive telecomm networked fees and consumer subscription based business models, with level 3 chargers hosting TV screens that can cost a hundred thousand dollars to install, risking unsustainable demand charges to the host sites if electricity consumption exceeds a certain level.  EV drivers do not need to be taught to associate public charging with rummaging around their glove box for the proper key fob only to find they failed to pre-register and create an account!  We have made it all seem so complicated, costly, and inconvenient.  Infrastructure should mean you charge primarily at home or work.  It should mean you can pay at any public station with a credit card.  If you need more energy during a particularly hectic week, you find it in the public forum and you pay for what you need and move on.  It may mean the host site uses a simple keypad or RFID  reader to activate the charger at your hotel or apartment complex.  It doesn’t have to be touchscreens, key fobs, hassle and headaches.

Companies such as ECOtality and Coulombe have been banking on laying the framework for what they see as a self-sustaining public infrastructure revenue stream- even before the ramifications of their data on consumer behavior  becomes clear.  One ostensible value of the EV Project was to get Idaho National Lab to parse out the actual numbers to begin to answer fundamental questions about charging infrastructure- how to incentivize off-peak charging? When do most consumers charge?  Where do they charge?  What is the proper ratio of public chargers to vehicles? How much will people pay? Building a networked infrastructure model before the data analysis was completed was a calculated business decision made by ECOtality and Coulombe- that model now needs to be tested in the marketplace and improved upon.

None of these questions are simple. Indeed the process itself can skew the results.  For example, Don Karner, then-President of ECOtality, reported to the DOE  that the initial residential installation subsidy of $1250 was causing most installation bids to come in at…$1250.  Accordingly, there was no clear data on the actual installation costs and they would be gradually phasing out the subsidy.  My experience shows that is twice the actual cost for the average home install.  We did need to invest in the technology- and make mistakes.  And now we need to start learning from them in order to reach escape velocity.

Giving away residential charging stations to customers of two auto manufacturers (Chevy and Nissan) may have made sense to get the data collection points in the field immediately, and now we have them.  That has been done and we should not extend the EV Project further. We did need to get chargers out in the field and afford utilities the opportunity to learn about linkage to their distribution system.  We did need to educate public utility commissions and the energy community about time of use rates for EVs and their grid-based benefits.  We did need to help auto dealers sell the vehicles by having the infrastructure come pre-packaged and added in for no extra cost.  However, we now see the Chevy Volt selling over 2500 units per month- and increasing- with a current annual sales of over 19,000 units domestically.  We now have added  Ford, Honda, Toyota, ThinkCity, Fisker, Tesla, Audi, Coda, Mitsubishi and all the other major automakers offering vehicle models with a plug. We even have electric motorcycles- Brammo, Zero, Motorczysz.  None of them currently qualify for of any the EV Project subsidies.   If we are to get to the next level of deployment, we now need to level the playing field, to embrace the notion of competitive neutrality (a term which ECOtality ironically embraced in its comments before the Oregon Public Utility Commission when seeking to prevent electric utilities from having a role in supplying their own charging infrastructure).  This will decrease costs, simplify installation, provide consumers with options, and benefit the total industry.

Quite simply, no one can compete with free.

Free is now inhibiting the evolution of the charging station industry, stifling competition, and preventing consumer choice.   It’s time to end the EV Project subsidies and extensions and let the market provide the full range of infrastructure solutions available.  Infrastructure needs to be unchained, especially in those markets where ECOtality has had a dominant presence because those regions are poised to become self-sustaining and offer the model for the rest of the country.  Consumers need to see that infrastructure can be simple, cost-effective, and scaled at a variety of levels to meet a variety of needs.  Its time to let us grow up.  And reach for the sun.

 

 

What Price Too High? NRG Settlement Highlights Industry Tension

 

Despite the need to remain starry-eyed and romantic about the potential of electrified transportation, it is in the end a business that will either succeed or fail based on profitability.  ECOtality‘s involvement in the EV project allowed the consumer to benefit not only through installation of government subsidized infrastructure but also, and most importantly, as a result of Idaho National Labs access to the data about consumer behavior that will better inform the entire industry.  ECOtality’s interest in sharing is strategic.  It wants to use its early market penetration to give it first mover advantage and capture a larger share of charging station business going forward.  Data is the price it has to pay.

ECOtality’s advantage has now been directly challenged in the largest, and most profitable short- and long-term market: California.

NRG, a Texas-based investor owned utility with an aggressive gameplan for its “Freedom Station” charging network, negotiated a settlement with the California Public Utility Commission that could provide it with an exclusive franchise like entry into one of ECOtality’s most profitable territories.  The seed for this network, bizarrely enough, stems from NRG’s acquisition of Dynegy, Inc., a company rooted in the Enron scandal and found liable for over a billion dollars of overcharges to California consumers.  Rather than having the settlement money be returned pro rata to those consumers, the CPUC negotiated an agreement with NRG. Under the agreement, the company will spend $50 million to build 200 DC fast charging stations, $40 million for electrical infrastructure to support 10,000 level 2 charging stations, $5 million for research into EV charging services, and $4 million to develop EV car-sharing programs.  Here are the specifics:

NRG will also install infrastructure for plug-in units, or “make-readies”, at multi-family housing, workplaces, and public interest sites, which will over time support the installation of Level 1 and Level 2 chargers from all charging companies. Further, to meet the CPUC’s goal of ensuring that the electric vehicle charging infrastructure is available to Californians of all income levels, NRG will ensure that mixed-income housing locations are identified, evaluated, and pursued for the make-readies.

Other provisions of the settlement intended to support the roll out of electric vehicles and expand their availability include:

·        In consultation with The Greenlining Institute, NRG will pay an additional $4 million to support low income car-sharing, workforce training, and related programs;

·        NRG is required to spend $5 million to collaborate with researchers and stakeholders on technical demonstration projects that will test new charging and related technologies;

·        NRG will solicit competitive bids for third-party services and equipment, and will provide preferences for employees that are graduates of pre-apprenticeship training programs applicable to the trade or trades to be performed, as well as provide preferences for hiring and retaining employees from the historically disadvantaged or underrepresented classes, including women, minorities, and disabled veterans; and,

·        The fast-charging stations will be compatible with electric vehicles on the market today as well as new models to be introduced beginning next year. Initially they will all have a CHAdeMO charger and a SAE Level II unit; they will be upgraded to accommodate the forthcoming SAE (Combo) DC standard within six months of when chargers using that standard become commercially available.

“The lack of recharging infrastructure and the concern about the range of electric cars have been identified as a barrier for the proliferation of electric vehicles.  This settlement creates that needed infrastructure, which will open the market to many electric vehicle stakeholders,” said CPUC President Michael R. Peevey.  “Devoting one-quarter of the total settlement value to electric vehicle charging infrastructure is a strong, creative idea that will bring California incalculable public benefits.”

Said Commissioner Mark J. Ferron, “The settlement, in combination with the earlier settlement Dynegy reached with the state in 2004, brings closure to our case against Dynegy for its role in the energy crisis of 2000-2001.  In total, Dynegy together with NRG will have returned to the people of California more than $400 million in consideration.  Of this total amount, three-fourths, or $300 million, will be paid in the form of cash to offset the electric bills of customers in California. The remainder, more than $100 million, will be paid by NRG in the form of electric vehicle charging equipment. This will bring cleaner air, local jobs, and a much needed jump-start on what we expect will be an industry of the future.”

“This settlement captures significant value for California under circumstances where contentious and expensive litigation would otherwise have continued for many years and with uncertain results,” said CPUC Commissioner Mike Florio.  “The CPUC is committed to ensuring that the settlement not only makes electric vehicle infrastructure available to Californians of all income levels, but that it also creates job opportunities for California’s diverse communities.”

The fast charging stations will be owned by NRG’s subsidiary eVgo, which already operates a charging network in Texas. The stations will be compatible with the CHAdeMO charging standard, and will add equipment compatible with the new SAE standard when it becomes official. They will be located in retail areas near highways around the state’s four largest metro areas. Users will pay with a credit card, and the company envisions getting between seven and 15 bucks for a charge.

The network will also include 10,000 level 2 charging station locations, or “Make Readies,” as the settlement calls them. NRG will install the necessary wiring for these sites, then turn them over to property owners. NRG’s eVgo will have the exclusive right to install charging stations for 18 months, after which the sites will be open to competitors.

After trying, unsuccessfully, to get the CPUC to re-open its decision and provide public comment, ECOtality has now filed a lawsuit in Federal District Court alleging  that the PUC made an illegal agreement with NRG  that gives it  18 months of exclusive rights to operate charging stations in certain locations.

“This so-called ‘punishment’ is like a restaurant failing a health inspection then being given an exclusive franchise to open and operate every restaurant in the city, subsidized by public funds,” said ECOtality CEO Jonathan Read. “This is an illegal giveaway, negotiated without public input, that will not only impede the development of the electric vehicle market in California and ultimately cost consumers more — but it also denies California rate-payers any refunds from the nearly $1 billion in overcharging that occurred during the energy crisis.”

NRG spokesman, David Knox, maintains that the settlement benefits California’s entire EV industry. “NRG is making a private investment to build an electric vehicle infrastructure that will encourage electric vehicle adoption across the state to benefit the state of California, the people of California and all the businesses that support the electric vehicle industry.”

Is the NRG’s settlement too high a price for California rate payers?  Is ECOtality’s filing a misstep in the direction of enriching its own business  prospects at the expense of vehicle electrification?  Is the CPUC’s apparent disregard for its avowed policy favoring competitive neutrality instead a “creative solution” to jumpstart infrastructure and in the public’s best interests? Stay tuned.