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Charging electric vehicles in Massachusetts could get less expensive under a pair of utility proposals now under consideration, but advocates are arguing for tweaks they say would make the transition faster and more fair.
A 2022 state climate law requires the state’s two major electric companies, Eversource and National Grid, to submit proposals for so-called time-of-use rates offering lower prices to electric vehicle owners who charge their cars during times of lower demand hours. The utilities did so in August 2023, proposing off-peak rates they say could save users hundreds of dollars a year compared to basic service rates.
Climate advocates generally support the time-of-use concept. Lowering the cost of charging could motivate potential buyers as the state tries to hit its goal of getting 900,000 electric vehicles on the road by 2030, they argue. Shifting vehicle charging to off-peak hours could also lower power use during peak times, reducing the need to fire up older, dirtier fossil fuel power plants to meet demand.
Still, stakeholders said, there is room for improvement in everything from the process of collecting public feedback to the precise calculations behind the rates.
“We are very supportive of time-of-use rates, broadly speaking,” said Oliver Tully, director of utility innovation and reform at climate nonprofit the Acadia Center. “We want to make sure these initial plans are as strong as possible.”
In considering the utilities’ proposals, the Department of Public Utilities is trying out a new strategy: They have asked the utilities themselves to collect feedback from the public. The goal is to hear from parties that might not have qualified to be formal intervenors in the case, said Anna Vanderspek, electric vehicle program director for the Green Energy Consumers Alliance.
“They’re saying: We want you to talk about this and come to an agreement because the [Department of Public Utilities] process limits who’s in the room for the conversation,” she said.
While she appreciates the aim of opening the discussion to more voices, however, she isn’t confident the utilities, left to their own devices, will create enough opportunities for feedback.
“It’s not an impartial third party running the stakeholder process,” she said.
The utilities had a first meeting scheduled to take place online today, which Eversource spokesman William Hinkle called, “the first of a series.”
The timeline laid out by the utilities is also of concern to some advocates. The utilities do not want to roll out these rates before they deploy advanced meters and software, and then have a year’s worth of experience with the new system “to ensure network stability,” according to Eversource’s filing. By the utility estimates, this timeline would mean the new rate option would be unlikely to kick in before 2029.
Many advocates don’t think it’s necessary to wait quite so long, however. Other states, such as Vermont and California, have implemented time-of-use rates for electric vehicle charging without requiring advanced meters. Data from chargers or the vehicles themselves can be used to determine how much power was used for charging and when, allowing for billing at different rates.
“You can implement basic time-of-use rates without a smart meter,” Tully said. “If you allow for submetering using charging technology you should be able to accurately do that.”
Getting started now, instead of waiting for advanced metering, could also make the launch of time-of-use rates go more smoothly, said Graham Turk, a graduate research assistant at the Massachusetts Institute of Technology’s Energy Initiative. Any new rate structure is going to need adjustments once it is introduced.
“The earlier they do that, the better,” Turk said. The current proposal would “just push that farther down the line when [electric vehicles] are a lot more prevalent and it’s a lot harder to do this for the first time.”
Lower rates during off-peak hours may not be enough on their own to recruit new electric vehicle drivers, many experts said. Getting the precise numbers right will be vital.
“The real challenge is going to be in ensuring that the rate structure is something that encourages people to participate, but doesn’t punish people for using electricity outside of the time-of-use rate hours,” said Priya Gandbhir, senior attorney with the Conservation Law Foundation.
The utilities’ filings include example numbers for what an electric vehicle charging time-of-use rate might look like, but do not propose specific rates yet, given how much could change in the market and regulations over the next five years. In each of these illustrative cases, the cost of off-peak vehicle charging is substantially lower than the cost of basic service, while the cost of on-peak charging is significantly higher.
That makes rough sense, advocates said, but when the real numbers are determined, a delicate balance must be struck. If the difference between on-peak and off-peak rates is too small, it won’t do enough to motivate more people to consider electric vehicles. At the same time, if the gap is too big, then a few on-peak charges could mean a bigger bill than under basic service rates, effectively punishing some consumers if a sudden change in schedule alters their charging times.
“Basically, when people’s bills come through at the end of the month they should be able to see some savings, regardless,” Gandbhir said. “They shouldn’t have to be perfect.”
As all these complicated decisions are made, it is essential to keep in mind the effects these changes could have on lower-income populations in the state, said Mary Wambui-Ekop, a longtime energy equity activist and co-chair of the equity working group for the state’s Energy Efficiency Advisory Council.
She worries that the overall cost of a major transition toward a new metering system and time-of-use rates could add to the already high energy burden of low-income households. In Massachusetts, households earning under 30% of the average median income pay 13% of their earnings to energy costs, as compared to 2% for households at or above median income.
“The bottom line is low-income households in Massachusetts, Black and brown households, have higher energy burdens,” Wambui-Ekop said.
At the same time, residents working multiple jobs, living in rental units, and just trying to keep up might not have the time, education, or internet access to learn about and weigh new and potentially cost-saving options.
There is precedent for this concern: Lower-income households have also been left behind in other pushes for renewable energy or energy efficiency in the state. A 2020 report by the utilities, for example, found that residents of wealthier communities were far more likely to have taken advantage of energy efficiency programs than those in lower-income areas and neighborhoods with higher populations of color.
Plans for time-of-use rates — for electric vehicle charging or beyond — must therefore include careful plans for making sure historically disadvantaged communities can share in the benefits and avoid shouldering the burden, Wambui-Ekop said.
“I am not opposed to time-of-use rates,” she said, “They are great in a perfect market. Unfortunately, the market system has not been fair to low-income households.”
The cold spell that swept the U.S. last week brought surprise snow and cold to states that don’t usually see it, but it wasn’t exactly a winter wonderland for many electric vehicle drivers.
Freezing temperatures decreased EV battery ranges and reduced charger speeds, leading to long waits at some public chargers — and a whole bunch of headlines. The problem came to a head in Chicago, where temperatures well below zero led to hours-long waits at Tesla Supercharger stations.
I live in Buffalo, New York, and took my Subaru Solterra out in some chilly temperatures over the past few weeks, including to a nearby ski hill and a snow-buried Buffalo Bills game. I got everywhere I needed to be without trouble, though I did turn off my car’s heat at times to conserve my battery range and took some slower but shorter-mileage routes. And while there wasn’t a line at my closest Level 3 charger, I only got a few miles of range while charging as I grocery shopped.
Experts say small trip modifications like those, plus a little patience and prior planning, can keep EV drivers out of cold-weather potholes.
🌨️ Keeping the lights on: A top federal energy regulator says the recent wave of winter storms highlights the need for “equitable and forward-thinking transmission solutions” that ensure power plants and lines keep working in bad weather. (Utility Dive)
🌞 The Pentagon goes solar: The U.S. military will install rooftop solar panels on the Pentagon as part of a $250 million package to reduce emissions from federal buildings. (Associated Press)
🚛 Eastbound and electric: While few medium- and heavy-duty truck drivers are piloting electric models, many who do love their smooth handling and a lack of noise and fumes. (Washington Post)
☢️ Nuclear options: Despite growing public and governmental support for nuclear power, industry experts say it’s unclear when the next U.S. reactor may come online. (Canary Media)
🤫 Greenhushing: After rising greenwashing allegations, many companies are now keeping their climate work quiet, potentially decreasing pressure on big emitters to change their ways. (Grist)
🏗️ Cleaning up cement: Cement and concrete decarbonization startups partner to push for policies promoting low-carbon construction practices and products. (Canary Media)
🚢 Methane contradictions: Climate advocates say planned liquefied natural gas export terminals contradict the Biden administration’s promised efforts to crack down on methane emissions. (Canary Media)
Last week, the Biden administration announced a big boost for the country’s burgeoning electric vehicle charging network. The U.S. Department of Transportation picked 47 EV charging projects to receive nearly $623 million in funding under the 2021 bipartisan infrastructure law.
The projects include a $15 million network of chargers across Maine, $51.5 million for alternative fuel corridors in Puerto Rico, and a $67.8 million for electric truck and other chargers in New Mexico.
The funding is a much-needed stimulus for the U.S. charging network, which remains spotty in much of the country. So far only New York and Ohio have opened charging stations using bipartisan infrastructure law funding, and a handful of other states have broken ground on their EV projects, the Associated Press reports. As of last January, there were only about 20,000 publicly accessible, high-speed Level 3 chargers across the country.
But by 2050, the National Renewable Energy Lab estimates the country will have another 40 million EVs on the road. That means we’ll need at least 182,000 Level 3 chargers across the country by 2050 to accommodate them — and a lot more private and government funding to get them all built.
📉 Power emissions fall: U.S. power sector emissions dropped 8% in 2023 from the year before, largely thanks to a record number of new solar and utility-scale battery installations and a decline in coal use. (Canary Media)
🥶 Gas’ winter worries: An environmental group’s new report warns about the vulnerability of gas plants during extreme temperatures and cautions against the “vicious cycle” of investing in new gas-fired resources. (Utility Dive)
🌪️ Billion-dollar climate disasters: The U.S. saw a record number of billion-dollar disasters last year, facing 28 instances of intense flooding, tornadoes, and other severe weather. (Yale Climate Connections)
💰 Utilities’ roundabout influence: An investigation finds power companies have courted and at times co-opted more than two dozen Black civil rights leaders in the Southeast to help divert attention from environmental harms related to fossil fuel plants. (Capital B/Floodlight)
📹 Subscribing to climate denial: YouTube creators that have long pushed climate skepticism now seek to discredit renewable energy and other climate solutions. (CNBC)
😶🌫️ Cooking with gas? Testing reveals gas stoves release hazardous levels of pollutants that can be harmful to vulnerable populations, but protective measures can reduce those risks. (Washington Post)
🏠 Clean energy’s equity shortcoming: Low-income households could benefit most from clean energy upgrades such as heat pumps and solar panels but often don’t have access to financing or government incentives to afford them. (New York Times)
⛰️ A coal-to-solar solution: An energy company’s plan to build a solar farm on a mountaintop removal mine site in Kentucky could become a model to repurpose environmentally disturbed sites in Appalachia for renewables. (Daily Yonder)
ELECTRIC VEHICLES: The U.S. EPA announces nearly $1 billion in grants for schools to replace diesel buses with electric and low-emissions vehicles, with a vast majority going to schools in low-income, rural and tribal communities. (Guardian)
ALSO:
CLEAN ENERGY: Upfront cost is the biggest barrier to home energy upgrades like swapping out gas stoves, while lowering energy costs and environmental impact is a top motivator, a survey finds. (Canary Media)
CLIMATE:
OIL & GAS:
HYDROGEN:
CARBON CAPTURE: The U.S. EPA’s decision last month to hand over carbon capture permitting to state officials in Louisiana has environmental advocates worried that economic considerations will trump public health. (Grist)
STORAGE: A subsidiary of LG Energy Solution plans to build 10 grid-scale battery storage projects in the U.S. this year following the passage of the Inflation Reduction Act. (Utility Dive)
SOLAR: Hawaii advocates say lower payments for customers’ surplus rooftop solar power could incentivize customers to install arrays for their own use rather than exporting to the grid, imperiling the state’s energy transition. (Hawaii Public Radio)
UTILITIES: Following the defeat of a ballot measure to replace Maine’s investor-owned utilities with a consumer-owned power company, policymakers and advocates explore new ways to improve service. (Maine Morning Star)
COAL: Two years later, West Virginia lawmakers have yet to act on a workgroup’s recommendations for revitalizing devastated coalfield communities. (Mountain State Spotlight)
COMMENTARY: Solar farms built beyond a certain size have the ability to affect cloud cover and weather, impacting solar power production in faraway areas, two researchers find. (The Conversation)
ELECTRIC VEHICLES: Virginia schools have used federal funding, public-private partnerships and direct purchases to become the state with fourth highest number of electric school buses despite limited state funding for bus electrification. (Energy News Network)
ALSO:
SOLAR:
OIL & GAS:
FINANCE: An investigation finds that half the funds banned by Texas for “boycotting” fossil fuel industries actually invested a combined $5 billion directly into oil and gas, and two thirds of such funds have more than $13 billion invested in Texas-based companies. (Bloomberg)
STORAGE: An energy company begins operation of a 150 MW battery storage system in Texas. (Houston Chronicle)
GRID:
CLIMATE: Data shows the average temperature in 2023 was Texas’ hottest ever, clocking 3.5 degrees above the average for the 20th century. (Texas Tribune)
COMMENTARY:
ELECTRIC VEHICLES: The Biden administration awards $623 million for 47 electric vehicle charging projects across the country, with the money set to fund 7,500 new charging ports. (Associated Press)
ALSO:
EMISSIONS: U.S. power sector emissions dropped 8% in 2023 from the year before, largely thanks to a record number of new solar and utility-scale battery installations. (Canary Media)
CLIMATE:
CLEAN ENERGY: The world’s renewable energy capacity skyrocketed in 2023, growing at its fastest pace in 20 years, the International Energy Agency says. (Guardian)
OIL & GAS:
BUILDINGS:
SOLAR:
POLITICS: Republican Sen. Bill Cassidy says long-stalled energy project permitting reform will likely only happen as part of a bipartisan “grand bargain” that would need to include more precise pollutant measurements. (The Hill)
PIPELINES: After failed efforts to change state law, Iowa lawmakers suggest that blocking the use of eminent domain for carbon pipelines may require intervention by the U.S. Supreme Court. (Cedar Rapids Gazette)
A new year is here, and so are some big new clean energy developments, including the arrival of federal incentives that could boost the hydrogen and electric vehicle industries.
Here’s what you may have missed over the last two weeks:
🚗 Making EV incentives easier: New federal incentives for electric vehicles just took effect, allowing buyers to instantly access up to $7,500 toward a new EV and $4,000 toward a used one instead of waiting for a tax refund. At least 7,400 car dealers have signed up to offer the incentives. (Grist, The Hill)
💵 Hydrogen rules are here: The Biden administration released draft guidance for its hydrogen tax credit, which prioritize low- and zero-emission hydrogen production. Industry leaders say the rules go too far and will slow growth. (E&E News, Utility Dive)
☣️ Acknowledging coal ash dangers: A draft risk assessment published by the U.S. EPA for the first time says using coal ash as structural fill in road and other building projects can cause an elevated cancer risk from radiation, validating the concerns of residents and activists around the country. (States Newsroom, Energy News Network archives)
🔥 A hot new normal: As 2023 becomes the hottest year on record, scientists predict its extreme temperatures will soon become normal and that 2024 will be even hotter than last year. (Axios, Washington Post)
🥇 States lead on climate: Clean electricity standards enacted in Minnesota and Michigan bookended a year of state-level climate progress that included gas hookup restrictions and new funding for clean energy manufacturing. (E&E News)
🕯️ How gas keeps its power: U.S. gas utilities serving more than 35 million customers offer builders and contractors incentives to keep fossil fuels in new buildings, part of a longstanding relationship that could impede electrification. (The Guardian)
🤝 Labor meets climate: Last year saw significant collaboration between the labor and climate movements as UPS drivers fought for extreme heat safety measures, and autoworkers demanded fair wages amid a transition to electric vehicles. (Grist)
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