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Progress Report Electric Vehicle Charging Policy

Item 6.A Presentation July 16, 2012

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PRESENTATION OUTLINE

1. Purpose

2. Background

3. Scope

4. Going Forward

5. AMP Power Costs

6. Next Steps

PURPOSE 1. Review AMP’s current policy

2. Update the Board on progress since February, 2011

3. Introduce approaches to EV charging by other utilities

4. Discuss power cost concepts - Why it is important to EV charging

• Demonstrate potential for both increased revenue and for EV customers to obtain lower cost power

• Illustrate instances where EV charging could increase costs for all AMP Customers

5. Upcoming Topics to Update and Inform – Infrastructure, Regulatory Incentives, Cost of Service and Rates, Staff Recommendation

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BACKGROUND

Current Policy and Rate Discount

1. Experimental Schedule EV-X was approved in 2003

2. Provides a flat-rate discount based on vehicle weight or type of operation

3. Other conditions

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BACKGROUND (Continued)

Current Policy and Rate Discount

1. Very Light Duty Vehicles - $9.00 per vehicle per month MICROs, MINIs, SUB COMPACTs - THINK, SMART, ZAP

2. Light Duty Vehicles - $15.00 per vehicle per month COMPACT, MID-SIZED SEDAN, LIGHT TRUCK - LEAF, PRIUS, TESLA, RAV4

3. Medium Duty Vehicles - $21.00 per vehicle per month LARGE TRUCKS, VANS, SUVs - GMC SIERRA HYBRID

4. Commercially-Operated Golf Carts and Fleet Vehicles: 50% of the metered kWh for golf cart or fleet vehicle

5. Proof of Registration – And notice of when no longer operating EV

6. Off Peak Charging – Customer agrees to charge between 8pm and 8 am

BACKGROUND (Continued)

Previous Update

1. Presentation to the Board on February 28, 2011

• The state of the EV industry

• Opportunities and challenges EVs pose to small utility such as AMP

• Increasing usage and interest in EVs – Based on survey results and purchases by AMP customers

2. Board directed AMP to address EV policy

• Improve customer satisfaction

• Provide a competitive charging rate

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BACKGROUND (Continued)

Previous Update

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Electric Vehicles in Alameda

45 Total EVs Registered as of March, 2012 Green = Leaf (19) Purple = Plug-in Prius (3) Yellow = Volt (1) Blue = Other (22)

BACKGROUND (Continued)

Previous Update

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Electric Vehicles in Other Service Territories

Utility Population Number of EVs EVs per Capita x10,000

PGE 14M 2,000 1.4

SMUD 1.45M 40 0.3

SCE 14M 1,000 0.7

SDGE 3.4M 1,300 3.9

AMP 73,800 45 6.1

Palo Alto 64,400 60 9.3

SCOPE

Comprehensive rate policy for EV charging Types of Applications

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•Single Family Residences – 85%

•Condos, Multi-family dwellings

•Public and private stations

•Commercial and business

•Government agencies

SCOPE (Continued)

Comprehensive rate policy for EV charging

2. May benefit from phased implementation:

• Focus on majority of applications – Single family residences

• Expand to other charging situations – As experience is gained

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SCOPE (Continued)

Comprehensive rate policy for EV charging Issues Associated with Development

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Comprehensive Rate Policy for EV Charging

Regulatory Incentives

Distribution Infrastructure and Engineering Standards

SCOPE (Continued)

Comprehensive rate policy for EV charging –Implementation

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Financial tracking and reporting

Meter selection, purchase and installation

Billing system modifications

Integration and testing of systems

Staff training

Customer outreach and education

Implemented Policy

357 388

725

0

100

200

300

400

500

600

700

800

Monthly Consumption in kWh

Usa

ge in

kW

h

AMP Customer AMP Average AMP Customer After EV Purchase

Going Forward

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Current Policy Comparison

Monthly kWh Before and After EV Charging

Going Forward (Continued)

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Current Policy Comparison Monthly Costs -

AMP EV Customer vs EPA Estimate

Leaf Cost / Mile Prius Cost/ Mile Cost of Electricity

EPA Estimate $0.041 $0.076 $0.12000

AMP Customer $0.048 $0.076 $0.19423

$-

$0.050

$0.100

$0.150

$0.200

$0.250

Co

st/M

ile o

r kW

h

Going Forward (Continued)

Current Policy Comparison

1. While AMPs’ rate is comparable to EPA estimates

2. AMP can continue to make improvements

Revisiting AMPs’ EV policy may:

1. Produce a more cost-based rate to better fit AMP’s load and generation profiles

2. Allow AMP to be more competitive with neighboring utilities

3. Require some flexibility to conform to the current market conditions

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Going Forward (Continued)

Overview – Approaches to EV charging rate policies

1. EV and house on same meter • Time of Use (TOU) and/or Tiered rate structures

• No direct accounting for EV charging

• Electricity used for charging is not eligible for regulatory incentives

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Going Forward (Continued)

Overview – Approaches to EV charging rate policies

2. Separately Metered EV Rate • Dedicated meter for the EV

• Segregates actual EV charging load and usage

• TOU, Tiered and/or Real Time rate structures can be applied differently to the EV and the house meter

• Costs associated with separate meter and service

• Electricity used for charging is eligible for regulatory incentives and hence additional revenue

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Going Forward (Continued)

UTILITY Whole

House or Discount

Time of Use Night

Charging Discount

Separate

Meter Option

PGE

SMUD

SCE

SDGE

AMP

Palo Alto PENDING PENDING PENDING PENDING

Comparison of charging rate policies of other utilities

AMP POWER COSTS AMP Load Profile - Winter peaking utility

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0

10

20

30

40

50

60

70

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

MW

h

Hours of the Day

Typical Winter Day January 10, 2010

AMP Load

AMP POWER COSTS (Continued)

AMP Load Profile

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0

10

20

30

40

50

60

70

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

MW

h

Hours of the Day

Typical Summer Day August 7, 2009

AMP Load

AMP POWER COSTS (Continued)

AMP Load and Generation Profile

1. Highest wintertime daily consumption - When market prices generally are lower

2. Less summertime demand - When market prices are generally higher

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AMP POWER COSTS (Continued)

Peak and Off-Peak Periods

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0

10

20

30

40

50

60

70

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

MW

h

Hours of the Day

Typical Winter Day January 10, 2010

AMP Load

Peak Period

Off Peak Period

AMP POWER COSTS (Continued)

Peak and Off-Peak Periods

1. PEAK Period - Corresponds to higher demand and higher pricing during the day time

2. OFF-PEAK Period - Corresponds to lower demand and lower pricing at night

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AMP POWER COSTS (Continued)

AMP Load and Generation Profile

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0

10

20

30

40

50

60

70

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

MW

h

Hours of the Day

Load and Resource Balance Typical Winter Day

January 10, 2010

Peak Period

Market Sales

AMP Resources Market Purchases AMP Load

Off Peak Period

AMP POWER COSTS (Continued)

AMP Load and Generation Profile

2. Periods where generation does not meet load

• Buying - Often during peak period

• Purchases to cover additional loads during this time would impact all AMP customers

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AMP POWER COSTS (Continued)

AMP Load and Generation Profile 3. Periods where generation capacity is greater than

load

• Selling – During off peak and sometimes below the cost of AMPs’ resources

• Opportunity for customers to obtain lower cost power to charge their EVs

• Benefit AMP with increased revenues

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AMP POWER COSTS (Continued)

Resource and Load Costs

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$0

$250

$500

$750

$1,000

$1,250

$1,500

$1,750

$2,000

$2,250

$2,500

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Do

llars

Hours of the Day

Typical Winter Day January 10, 2010

Peak Period

AMP Resources Market Purchases AMP Load

Market Sales

Off Peak Period

AMP POWER COSTS (Continued)

AMP surplus power available during the off-peak period

1. Encouraging EV charging during Off-Peak

• Could result in cost savings for all AMP customers

• Raise revenue by increasing sales at night when power costs are generally lower and when excess power is often sold below AMP’s power costs

2. Discouraging EV charging during peak period to avoid:

• Increased costs for all AMP customers

• The purchase additional power at prices that are often higher than AMPs’ resource power costs

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AMP POWER COSTS (Continued)

Surplus power available during the off-peak period

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$0

$10

$20

$30

$40

$50

$60

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

$/M

Wh

Hours of the Day

Resource and Market Costs per MWh Typical Winter Day

January 10, 2010

Resource Net Market

Peak Off Peak

Off Peak

AMP POWER COSTS (Continued)

Surplus power available during the off-peak period

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-$30

-$20

-$10

$0

$10

$20

$30

$40

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

$/M

Wh

Hours of the Day

Resource and Market Costs per MWh August 7, 2009

Resource Net Market

Peak Off

Peak Off

Peak

AMP POWER COSTS (Continued)

Summary

1. AMP’s unique load profile

2. Peak and Off-Peak market prices

3. AMPs surplus power at night – Potential savings opportunity for EV customers and increased revenue

4. Peak period EV charging would impose additional costs to all AMP customers

5. Revenue impacts of these issues must be addressed in AMP’s EV charging rate and policy

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Next Steps – Schedule of Presentations

1. Information on Evaluation of distribution system infrastructure, interconnection and associated engineering standards - August/September, 2012

2. Update on Overview of regulatory issues – September, 2012

3. Information on Analysis of cost of service and rate structure development - October, 2012

4. Staff Recommendation for Board Consideration - November, 2012

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Questions and Comments