Full Title: Getting From Here to There: Regulatory Considerations for Transportation Electrification
Author(s): Regulatory Assistance Project
Publisher(s):
Publication Date: May 1, 2017
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Description (excerpt):
The electric industry in the 21st century is evolving in different ways from the power sector and traditional regulation of the preceding century. More recently, technology advances and new customer expectations are shifting the landscape. Customers are producing their own energy; electric vehicles (EVs) are becoming a new class of end use, and utility distribution systems are becoming more active and flexible by utilizing advanced metering and data systems.
While this evolution is a broad topic, this paper focuses on the opportunities provided by increasing penetrations of EVs, and various regulatory principles that this raises. It is difficult to gauge what the pace of transportation electrification in the US is going to be in the coming years, but changes to the electric sector will pose new challenges for regulators and utility companies. Regulatory policy, like the utility landscape, will likewise have to evolve.
Currently, there are relatively low penetrations of EVs, which makes this an ideal time for decisionmakers to put processes in place. This is an opportune moment for regulators to evaluate utility services in ways that promote alignment with the public interest (reflecting cost, risk, and environmental management) and to consider the application of some consumer protection guardrails to inform and safeguard newly assertive customers.
Some states have taken the lead on these matters, but there is no “one way” that they are addressing the question of how to electrify transportation. They have taken different approaches, including providing incentives and establishing mandates. What those leading states have in common is the identification of EV adoption goals. They are also coordinating between the various offices of state government and local jurisdictions that will be affected by increased EV penetration, and are developing processes that involve other potential stakeholders.