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U.S. Department of Energy Energy Efficiency and Renewable Energy

Utility Program Development

"Utility definition" is legislation that details which entities are to be considered utilities for the purpose of state or public service commission regulation.

Three entities drive the creation of the majority of utility programs for advanced vehicle technology deployment: state legislatures or governors, public utility and public service commissions (commissions), and the utilities themselves. Municipal utilities and electric cooperatives have more leeway than investor-owned utilities (IOUs) that operate under commission regulations. All new or updated IOU programs require commission approval while EV and/or EV charger programs implemented by municipal utilities and electric cooperatives might not require commission approval. Commissions represent public interest by ensuring power distribution is safe, reliable, and available at fair prices, and the commissions are tasked with helping legislators and utilities work out the details of utility regulations and programs. For each state in which an IOU has a service territory, the utility must comply with the corresponding state's commission regulations, meaning an IOU with a service territory in multiple states must file separate petitions with each commission and thus may offer very different programs in each state in which it operates.

To begin a new program, IOUs file a petition with the state commission, requesting evaluation and approval. The commission evaluates the utility's proposal through a legal process that includes public hearings and comments, briefs, discoveries, workpapers, expert testimony, rebuttal testimony, and more. These documents contain detailed information on the intricacies of the utility's new program, budget explanations and justifications, financial forecasting, and demand projections. Each document can take a great deal of time to compile before the commission begins analysis. The commission can continue to request new documents throughout the review process.

Once the commission has reviewed a case, the commission may approve a case as-is, approve it with modifications, or deny it. This is a months- to years-long process, which means there are many cases currently pending and under review by commissions across the country. Even if a state has many utility-based EV incentive programs before its commission, the programs will not be in effect for years. Eventually, utilities implement their programs and make them available for customers.

Process diagram with eight steps. Step 1: Submit petition to the commission. Step 2: The commission audits the request and supporting documentation. Step 3: Other parties audit and review the utility's materials, voicing concerns or requesting more information. Step 4: The commission invites customers and the public to ask questions or comment on the petition. Step 5: The utility formally presents the case to the commission through testimony. Commission staff and interveners also file their case through testimony. Step 6: The utility provides the most current information for the commission's consideration. Step 7: The utility resolves as many issues as possible. Any unresolved issues are addressed in a formal hearing before the commission. Step 8: The commission issues a formal ruling. The utility may then implement the program.

Examples provided here show utility programs in the development process. Utilities with approved EV and/or EV charger programs (residential and non-residential) appear on the Utility Incentives page.

State Mandates and Executive Orders

Some state legislatures pass mandates that require utilities to begin incentive or pilot programs. Similarly, state governors may issue executive orders that require utilities or commissions to begin a program. Typically, these mandates support a state goal related to zero emission vehicle deployment, EVSE infrastructure, or greenhouse gas (GHG) emissions reductions. Utilities must still get commission approval for new rates, rebates, grants, and programs even though the state legislature or governor mandated the program(s).

New Jersey

Senate Bill 2252, 2018, requires that each public electric utility in New Jersey submit a proposal to the New Jersey Board of Public Utilities to assist the state in developing a public charging network. SB 2522, 2018, allows utilities to propose development and operation of electrical infrastructure, financing plans, financial incentives, rate designs and tariffs, partnership programs with other government entities, consumer education programs, and other initiatives.

Utah

House Bill 296, 2020, and Utah Code 54-4-41 authorize the Utah Public Service Commission to establish a large-scale EVSE program with utility-owned EVSE, EVSE rate structures, and public education. This bill stimulates utility filings with the Utah PSC, but the bill alone does not require that utilities submit filings. Instead, Utah's legislature requires that the commission make funding available for EVSE programs. Whether utilities will be required to submit a filing rests on whether the PSC requires utilities in its jurisdiction to file for the program or not.

Florida

Passage of SB 7018, 2020, directs the Florida Department of Transportation, in consultation with the Florida Public Service Commission, Office of Energy, and relevant stakeholders, to develop a "Master Plan" for PEV infrastructure expansion. In this case, Florida is requiring utilities to actively engage in EVSE planning and PEV deployment rather than establish any utility programs. However, the Master Plan may later prompt the development of new utility programs related to EVSE and PEVs.

Current Proceedings

Colorado – Public Service Company (petition & docket)

  • Proceeding Number: 19A-0471E
  • Date Filed: 8/29/2019
  • Incentives/Programs: EVSE Make-Ready (government workplace, fleets, mass transit, transit buses, public, rideshare)
  • Code: Colo. Rev. Stat. § 40-5-107
    No later than May 15, 2020, and on or before May 15 every three years thereafter, an public electric utility shall file with the commission an application for a program for regulated activities to support widespread transportation electrification within the area covered by the utility's certificate of public convenience and necessity.
  • Summary: Public Service has partnered with several of its municipal and state agency customers, including the State of Colorado, the City and County of Denver, Regional Transportation District, and the City of Lone Tree, in developing make-ready infrastructure projects to support these customers' transportation electrification initiatives.

Arizona – Arizona Public Service Company (petition & docket)

  • Proceeding Number: E-01345A-17-0134
  • Date Filed: 9/1/2017
  • Incentives/Programs: EVSE Incentive, Electric School Bus Pilot (multi-unit dwellings (MUDs), workplaces, fleets, schools)
  • Code: A.A.C. R14-2-2405
    Except as provided in R14-2-2418, on June 1 of each odd year, or annually at the election of each affected utility, each affected utility shall file with Docket Control, for commission review and approval, an implementation plan describing how the affected utility intends to meet the energy efficiency standard for the next one or two calendar years, as applicable, except that the initial implementation plan shall be filed within 30 days of the effective date of this Article.
  • Summary: The petition proposes a $750/station discount for nonresidential and $100/home for participating homebuilders for prewiring garages for EVSE. This petition also includes a pilot program to provide selected schools with EV buses and charging infrastructure.

California – San Diego Gas & Electric Company (SDG&E) (petition & docket)

  • Proceeding Number: A1910012
  • Date Filed: 10/28/2019
  • Incentives/Programs: EVSE at workplaces and MUDs
  • Code: California Code § 740.12
  • Summary: The Power Your Drive (PYD) Pilot Program is an electric vehicle charging infrastructure pilot designed to allow SDG&E to install EV charging infrastructure at multi-unit dwellings (MUDs) and workplaces. SDG&E now requests an extension of the pilot program. The PYD Extension Program retains most features of the PYD Pilot as approved in D.16-01-045. Like the Pilot, the PYD Extension Program will install Level 2 charging ports at workplaces and MUDs (locations where employees and residents park their vehicles for long periods of time and on a regular basis). SDG&E will install and own the make-ready charging infrastructure at all the sites (workplaces and MUDs) as well as the charging ports at MUDs. To build upon the success of the PYD Pilot, SDG&E requests authority through the PYD Extension Program to deploy approximately 2,000 Level 2 charging ports over two years. Where modifications to the pilot are proposed here, they reflect lessons learned in the PYD Pilot and are intended to simplify program implementation, further attract customers, and continue to leverage and promote the private market.

Commission-Driven Incentives

Several commissions in the United States have begun to encourage utilities to include PEV and EVSE incentives in their offerings, typically as part of their energy efficiency and green power regulations. Even if a commission requires utilities to include incentives in their offerings, the utility still needs to complete the application and review process to ensure program design is appropriate and in the public interest.

Current Proceedings

California – Southern California Edison Company (petition & docket)

  • Proceeding Number: A1806015 (CPUC Decision 16-01-023, prior decision warranted this filing, from A.14-10-014 Charge Ready Phase 1 filing)
  • Date Filed: 6/26/2018
  • Incentives/Programs: Charge Ready 2: consumer education program, EV awareness campaign, EVSE Make-Ready Rebate, New Construction Rebate, Own and Operation (workplaces, MUDs, government, fleets)
  • Summary: In this application and supporting testimony, SCE requests commission approval of Charge Ready 2, the second phase of SCE's Charge Ready and Market Education Program. Approval of this application would allow SCE to continue to support the development and expansion of the transportation electrification pathway that SCE launched in 2014 with its Charge Ready and Market Education Program Application and began implementing in 2016 with the Phase 1 Pilot. With Charge Ready 2, SCE proposes a portfolio of programs aimed at accelerating light-duty electric vehicle adoption by making PEV charging available to more customers, addressing barriers to EV adoption and promoting PEV awareness and grid benefits. Charge Ready 2 is a four-year program that will support and accelerate light-duty PEV adoption, in line with California's goals of substantially reducing GHG emissions and criteria pollutants by 2030.

Ohio – Dayton Power and Light Company (DP&L) (petition & docket)

  • Docket Number: 18-1875 (petition was filed as a result of amended stipulations and recommendations from the Ohio PUC in Case No. 16-395)
  • Date Filed: 12/21/2018
  • Incentives/Programs: Public Charging Stations
  • Summary: DP&L plans to install approximately 50 EVSE throughout its service territory. The charging stations will encourage the adoption of PEVs in DP&L's service territory by establishing an EV corridor, reducing "range anxiety" for persons considering purchasing an EV. Those charging stations will have a substantial impact on the probability of adoption of PEVs, which will create additional pocketbook savings due to cleaner cheaper power of a PEV.

Utility-Driven Programs

Some utilities have acted on their own to pilot incentive programs, in part to take the lead and in part because the relevant state commissions may not yet have advanced a position that supports PEVs and EVSE. Nonetheless, as both shareholders and ratepayers ultimately fund all utility incentive programs, creation of any new, permanent program requires commission approval. As utilities have developed and proposed incentive programs, more utilities and commissions have begun joining together in the effort to create EVSE infrastructure networks. Utilities working independently, and in partnership with all levels of government and businesses, also continue to develop pilot programs, aiming to identify the most effective public-private partnerships to promote vehicle and infrastructure adoption.

Current Proceedings

New Jersey – Atlantic City Electric (ACE) (petition)

  • Docket Number: EO18020190
  • Date Filed: 12/17/2019 (original petition filed 2/22/2018)
  • Incentives/Programs: Residential TOU; Residential Rebates for Level 2 Chargers; Level 2 EVSE rebates for MUDs, workplaces, garages, and fleets; install and operate public EVSE, rate incentives to public DCFCs that are privately owned, grants for transportation electrification in low-to-moderate and environmental justice communities, funding for electric school buses, and EVSE for transit buses.
  • Summary: On February 22, 2018, ACE filed its Original Petition with the Board, proposing a $14.9 million PEV Program with eight offerings designed to foster the growth and deployment of PEVs in New Jersey. By Board Order dated March 26, 2018, the Board retained jurisdiction over this matter. On or about April 6, 2018, the Division of Rate Counsel ("Rate Counsel") filed a motion requesting a stay in this matter. No other relevant procedural events have occurred in this docket since full briefing on Rate Counsel's motion to stay was completed.

Delaware – Delmarva Power & Light (petition & docket)

  • Docket Number: 17-1094
  • Date Filed: 10/19/2017
  • Incentives/Programs: Residential EV Rate and EVSE Incentive (residential)
  • Summary: Offer residential customers with PEVs to choose a discounted "whole-house" rate that offers the customer easy entry into a new rate and the ability to charge during off-peak hours. Customers will also have the option of receiving 100% renewable energy in the form of a PEV-Green Adder. Financial Incentive: 50% of EVSE and Installation costs.

Pennsylvania – PECO Energy Company (petition & docket)

  • Docket Number: R-2018-3000164
  • Date Filed: 3/29/2018
  • Incentives/Programs: EV DCFC Pilot Rider
  • Summary: Applicable to a service that includes at least one permanently connected and publicly available (or workplace fleet) direct current (DC) fast charger served under Rate GS, PD, or HT installed on or after July 1st, 2019. The DC fast charger must be located along a public roadway corridor, at a public charging location, at a multi-dwelling unit residential building, or at a workplace for fleet or customer charging. The DC fast charger does not limit its compatibility to an exclusive subset of PEVs via the use of proprietary charging networks or technology, including but not limited to communication protocols, connectors, or ports.

Wisconsin – Northern States Power Company/Excel (petition & docket)

  • Docket Number: 4220-TE-104
  • Date Filed: 11/20/2019
  • Incentives/Programs: Residential/Commercial EVSE Installation and TOU Rate
  • Summary: The Residential Programs provide customers with EVSE, allowing them to charge their PEVs at home and utilize TOU rates to incentivize EV customers to charge during off peak times. The Application also proposes a pilot Commercial EV Service Program, which allows the Company to study an alternative to Wisconsin's current extension rules for medium and large PEV customers. Through this Commercial Program, the Company wishes to study a modification to the electric extension rules formula to provide eligible customers with a revenue-based allowance. On July 16, 2020, the commission approved Northern States Power Company's petition to add three new PEV service programs.
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