Resolution Urging States to Establish Electric Vehicle Charging Stations as a Competitive Market Free From Utility Commission Regulation

Summary

This model resolution urges state utility commissions to declare the electric vehicle charging market to be a competitive market outside utility commission control, and further forbids regulated utilities from using electric customer funds to build their own fleet of electric charging stations. The regulated utility may use investor funds to build charging stations, and may establish similar connection approval for charging stations as typically required for other electric customers.

Resolution Urging States to Establish Electric Vehicle Charging Stations as a Competitive Market Free From Utility Commission Regulation

Model Resolution

WHEREAS, in most states electric utilities hold monopoly territories for the direct sale of electricity to electric consumers; and

WHEREAS, that monopoly status could prevent alternative suppliers from providing charging services, thus limiting the availability of charging stations; and

WHEREAS, plug in electric vehicles need 4 times fewer service station outlets then internal gasoline/diesel fuel pumps (charging market demand is limited by 88% to 95%of charging being done overnight at home or at work, and by average miles driven per year per plug in electric vehicles being 60% less than gasoline powered vehicles, but take four times as long to charge); and

WHEREAS, currently there are 205 times more internal combustion powered vehicles then plug in electric vehicles, but only 4 times more service station locations according to US Department of Energy data; and

WHEREAS, there is currently one charging outlet for every 15 plug in electric vehicles, but there is only one fuel pump for every 190 gasoline powered vehicle; and

WHEREAS, low demand for public charging requires unique marketing strategies for service station locations at stores, hotels, and employers wanting to attract relatively wealthy electric vehicle owners; and

WHEREAS, a competitive market exists for electric vehicle charging stations that is meeting existing charging demand in every state with an average of 1.5 more capacity than demand according to a 2019 US Department of Energy, Alternative Fuels Data Center; and

WHEREAS, over the last 18 months charging locations grew 30% faster than new EV purchases; and

WHEREAS, regulated utilities have an unfair market advantage in a competitive market as they can be approved by utility commissions to invest in chargers with electric customer funds with a 10% guaranteed return; and

WHEREAS, the cost burden of providing chargers when chargers are built by regulated utilities is shifted to lower income electric customers who cannot afford the $15,000 to $20,000 premium cost of electric vehicles; and

NOW, THEREFORE, LET IT BE RESOLVED that (state legislature) hereby urges the (state utility commission) to declare the electric vehicle charging market to be a competitive market outside utility commission control, and further forbids regulated utilities from using electric customer funds to build its own fleet of electric charging stations.  The regulated utility may use investor funds to build charging stations, and may establish similar connection approval for charging stations as typically required for other electric customers.