Delmarva Power gets OK for special electric rate, charging stations for electric vehicle owners

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Delmarva Power was given approval from the Delaware Public Service Commission to offer electric vehicle services.

Delmarva Power will expand public charging infrastructure and offer a new rate option for residential customers who charge their EVs at home.

The state is seeing more stations, with Wawa offering Tesla chargers in a few locations.

“This decision is a positive first step in meeting our customers’ growing interest in EVs and a great example of the new energy services and choices we can provide for Delawareans,” said Gary Stockbridge, Delmarva Power region president. “We worked closely with our community partners to find initial EV services that would support the expansion of clean transportation options for all customers in Delaware, and we look forward to continuing this collaboration as we drive the transition to a cleaner and more sustainable energy future.”

According to the Edison Electric Institute, more than 5 million EV chargers will be required to support the projected 7 million EVs on the road across the country by 2025.

Delmarva Power’s new services are designed to help the company proactively understand customers’ charging needs and behaviors, so it can support the state’s planning and deployment of EV infrastructure and help avoid potentially costly infrastructure gaps in the local energy grid.

Based on a settlement, reached between Delmarva Power, Staff of the Delaware Public Service Commission, and Division of the Public Advocate, Delmarva Power will install, own, and maintain four new charging stations that will provide new public access to EV charging infrastructure.

These new chargers will help Delmarva Power and others identify best practices for locating and interconnecting chargers to the local energy grid and understand how customers use different types of chargers in different areas, including local neighborhoods, underserved communities, and main transportation corridors.

All electricity provided through the chargers will be from 100 percent renewable energy sources. Locations will be determined by Delmarva Power, PSC Staff, Division of the Public Advocate, and the Delaware Department of Transportation.

“We are glad to see Delaware taking steps to prepare for the coming demand for EVs, which will better position the state to meet its environmental goals and reap the many benefits of electric transportation, including the potential reduction in local air pollution.” said Joseph Otis Minott, executive director and chief counsel for Clean Air Council. “The fact is, the future of vehicles is electric. It is vital that energy companies, like Delmarva Power, be ready and equipped to manage this shift, as there is no doubt they will play an instrumental role in the installation and maintenance of EV charging systems.”

The settlement also provides a new rate option for Delmarva Power residential customers who install a second electric meter for EV charging, as well as the option to receive 100 percent renewable energy for their residential EV charging through this offering.

This rate option offers customers potential cost savings for charging an EV during “off-peak” hours, including nights. Currently, most customers pay a flat rate for all their energy use no matter when they use it. Under the rate structure customers are charged a higher rate during afternoon to evening “on-peak” hours and a lower rate throughout the rest of the “off-peak” hours of the day for their EV charging, with the goal to incentivize customers to charge their EVs at night and in the morning.

The incentive will help lessen the potential for significant shifts in peak demand due to increasing EV charging that could impact the whole system and raise costs for all customers.

The program is expected to cost approximately $475,000, or about 3.7 cents on the monthly bill for the typical Delmarva Power residential customer using 840 kWh per month. The new services are expected to become available over t the next year.

These new offerings complement existing incentives, rebates, discounts, and programs already in place in the state that help residents and businesses buy, own, and operate EVs.

The Delaware Department of Natural Resources & Environmental Control offers several incentives, including rebates, up to $3,500, for the purchase or lease of an electric vehicle and various rebates for the purchase of EV charging stations for homes, apartment buildings, and workplaces.

The Commission’s decision also establishes a Working Group, including Delmarva Power and other stakeholders in the state, to continue evaluating the growing demand for electric transportation. The group will analyze data from Delmarva Power’s new services and will monitor the need to further expand electric transportation options and services in Delaware.

The Maryland Public Service Commission also recently granted approval to Delmarva Power, and its Exelon sister companies BGE and Pepco, for a pilot program to expand transportation electrification options in Maryland.

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