Press Release

PUC Seeks Comment on Proposed Policy Statement on Electric Utility Rate Design for Electric Vehicle Charging in Pennsylvania

Published on 10/19/2023

Filed under: Electric

Proposed Guidelines Put Forth Key Policy Issues to be Weighed in Determining Appropriate Rate Structures for EV Charging

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a Proposed Policy Statement requesting public comment on proposed guidelines for electric utility rate design for electric vehicle (EV) charging.

The Commission voted 5-0 to approve a motion by PUC Chairman Stephen M. DeFrank seeking comments and reply comments on the proposed policy statement – which provides guidance to electric distribution companies (EDCs) and other interested parties on factors to be considered regarding electric utility rate design for EV charging – including, but not limited to, comments on key policy issues related to EV-charging rate tariffs, rate design, and rate equity for distribution services and default service generation.

“I submit that the purpose and scope of this Policy Statement should be to encourage EDCs to develop EV-charging distribution rates with cost-of-service principles that incentivize increased network capacity utilization of the distribution system,” Chairman DeFrank said.  “Further, I believe the Policy Statement should encourage default service providers, presently a role occupied by EDCs, to develop EV-charging generation rates which, at a minimum, properly reflect the cost of generation services during times of system stress.

“EDCs and Default Service Providers (DSPs) may consider tools such as time-of-use, real-time pricing, demand charges, rebates, automatic control devices, and others to properly effectuate the public interest in line with the Commission’s proposed Policy Statement.”

In his motion, Chairman DeFrank noted that EDCs have an opportunity to utilize the portfolio of new technologies such as, but not limited to, advanced metering, advanced grid monitoring, energy efficiency, demand response, and smart thermostats to better accommodate the evolving demand profiles created by this new energy landscape.

The PUC previously had convened its EV Charging Rate Design Working Group and sought comments and input from concerned parties in response to a petition filed in 2022 by a coalition focused on EV adoption and development in Pennsylvania.  Following its review of comments submitted by concerned parties and the recommendations of the working group, the Commission initiated a proceeding on May 18, 2023, that resulted in the issuance of today’s proposed policy statement on EV charging rate design.

Interested parties may submit written comments within 30 days of publication of the Commission’s Order in the Pennsylvania Bulletin.  Following the close of this comment period, interested parties have an opportunity to file written reply comments within 60 days of today’s Order.  Both comments and reply comments should reference Docket No. M-2023-3040755.

Interested parties submitting comments and/or reply comments are encouraged to use the Commission’s electronic filing system.  An eFiling account may be opened and used through the Commission’s website.  Comments containing confidential information should be emailed to Commission Secretary Rosemary Chiavetta at rchiavetta@pa.gov rather than eFiled.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility.  “Like” Pennsylvania Public Utility Commission on Facebook for easy access to information on utility issues.

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Docket No.:  M-2023-3040755

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov
• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov