Summary

This legislation directs the state’s combination electric and gas utilities to file with the Public Service Commission electric vehicle charging commercial tariffs for eligible light, medium, heavy-duty, and fleet electric vehicles as an alternative to be utilized as alternatives to demand-based rate structures currently applied to fast electric vehicle charging facilities. 

Explanation

New York’s Climate Leadership and Community Protection Act (CLCPA) sets a clear mandate to phase-out the use of fossil fuels and transition to a fully electrified transportation system. The key to a successful transition to electric vehicles is a robust network of charging infrastructure. Accessible fast charging points increase consumer confidence in the reliability of EVs, reducing range anxiety for consumers. Publicly available stations also offer alternatives to drivers that may not have the option of charging at home.  

Despite the state’s efforts to incentivize the build-out of a fast-charging network, electricity rate design has in many instances made owning and operating fast charging facilities cost prohibitive. Utilities currently apply demand-base rates for fast chargers, meaning the utility bill is based on the highest average monthly use, even if a charging station is not actively utilized for most of the billing period. These high rates are stifling the buildout of a fast -charging network, prolonging consumer worries over vehicle range and discouraging drivers who do not have access to home or workplace charging options.  

This legislation directs the state’s utilities to develop alternative tariffs to the demand-based model, taking into account the ancillary cost and benefits of accessible fast-chargers. Flexible commercial vehicle tariffs will facilitate the build–out of a robust charging network that will in-turn boost consumer confidence in EVs speeding our transition to an all-electric transportation sector. 

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