Trade Publication Article

Electric Vehicles and Gas-Fired Power

Haley, Ben, Mahone, Amber, Orans, Ren, Williams, James H

2011

Overview

Rising environmental compliance costs and high costs mitigation options combine to create a real dilemma for utilities seeking to mitigate shareholder risk and keep their rates low and affordable for all customers. Applying a simple revenue requirement model to Duke Energy Carolinas as a case study, this analysis demonstrates that high electric vehicle (EV) penetration, combined with increased natural gas fired generation, can result in lower costs to consumers, lower risk to utility shareholders, and lower greenhouse gas emissions than a business-as-usual, coal- and nuclear-dominated scenario. However, at least three policy changes must be implemented in order to achieve this beneficial outcome. These are: 1. Implement utility GHG emissions accounting rules to share emissions savings benefits from electric vehicles. 2. Allow electric vehicles to count as part of a utility's flexible compliance strategy with other energy policies and emission reduction goals. 3. Utilize smart meter technologies to sub-meter and incentivize off-peak electric vehicle charging.

• Publisher: Public Utilities Reports, Incorporated
• Subject: Air pollution / Carbon / Case studies / Coal-fired power plants / Costs / Electric rates / Electric utilities / Electric vehicles / Electricity / Emission standards / Emissions / Emissions control / Energy efficiency / Energy policy / Gasoline prices / Greenhouse effect / Greenhouse gases / Industrial plant emissions / Natural gas / Natural gas prices / Nuclear power plants / Pollution control costs / Renewable resources / Stockholders