EV Rate Design in Pennsylvania
Transportation electrification has the potential to provide myriad benefits to Pennsylvania by reducing greenhouse gas emissions and local air pollution, cutting the cost of vehicle ownership, and exerting downward pressure on electricity rates for all utility customers. However, the timing of EV charging can have significant impacts on electricity rates.
By providing price signals that encourage EV customers to charge during low-cost hours, electric utility rate design can help to maximize the benefits of EV adoption for all customers by ensuring that the revenues from EVs outweigh the costs imposed on the grid. In addition, well-designed electricity rates can facilitate greater EV adoption by maximizing fuel cost savings.
On behalf of the Pennsylvania Department of Environmental Protection, Synapse analyzed the potential grid impacts of EV adoption in Pennsylvania and various rate design options that can be utilized to maximize the benefits of transportation electrification for all customers.