Brattle Principals Ryan Hledik and Ahmad Faruqui and Research Analyst John Higham have co-authored an article published in the May 2019 issue of Public Utilities Fortnightly in which they discuss the need to establish a proper rate structure for the charging of electric vehicles (EVs).
The article, “Emerging Landscape of Residential Rates for EVs,” outlines the need for shifting EV charging away from peak hours to avoid putting significant strain on the distribution system. One effective way in which utilities are solving this issue is through time-of-use (TOU) rates, which charge customers prices that vary by the time of day. After conducting a survey of EV-specific rates, the authors found that 27 of the 31 EV-specific rates currently offered are TOU rates.
TOU rates have also been found to have a very positive impact on charging behavior of EV owners. In 2014, San Diego Gas & Electric pilot tested three TOU rates with 430 Nissan LEAF owners. The study found that EV owners were highly responsive to modest-high price ratios and shifted a large majority of their charging to off-peak hours.
The full article can be found on the Public Utilities Fortnightly website.View Article