Electric vehicle (EV) sales have roughly doubled every year for the past three years in the United States, and electric utilities are enabling further EV growth by offering new tariff and rate structures tailored specifically for EV owners.
According to the fourth annual benchmark study published by Northeast Group, there are currently 25 utilities across 14 states offering EV tariffs, including of the largest 15 utilities. Regulators are also taking action and Minnesota recently became the first state to mandate that electric utilities offer EV tariffs.
“In the currently shifting landscape, utilities are finding it increasingly important to better engage with their customers,” Ben Gardner, president of Northeast Group, said in a release. “A key part of this is new customer offerings such as electric vehicle tariffs. EV owners tend to be more engaged customers and it is critical that utilities are providing them with new rate options for their EVs.”
Typically, EV rates offer steeper discounts at night and during other off-peak hours. Across the 14 states with EV tariffs, the average equivalent “price per gallon” was $0.75. Without EV-specific tariffs, the U.S. Department of Energy calculated that the cost of an “eGallon” was $1.42. The average cost of gasoline in these states was $3.70.
“EV owners are an increasingly important focus for utilities,” Gardner added. “On average, they consume more electricity−not even counting electricity consumed by the EV−and are more likely to have solar panels installed at their home. EV tariffs that offer overall lower prices while encouraging off-peak charging are a great way to engage these customers.”
Northeast Group, a Washington, D.C.-based smart infrastructure market intelligence firm, found that 95 of the 100 largest utilities in the U.S. had EV-specific information on their websites for customer engagement purposes.
Utilities that still do not offer special EV rates can make new rate offerings part of broader customer engagement efforts. These broader customer engagement efforts may include social media, mobile apps, and new customer offerings.
According to the benchmark, more than 21 million utility customers across 25 electric utilities in 14 states had access to EV tariffs in the U.S. This number is set to grow in the future as EV sales grow and regulators begin encouraging EV tariffs.