Ulupono urges a bold stand on EV charging rates
Oct 28, 2024
As the Hawai‘i Public Utilities Commission (PUC) continues its thoughtful deliberation on Hawaiian Electric’s Public Electric Vehicle Charger Expansion Project, the future of EV charging in Hawaii is taking shape.
A key component, “EV-U” rate design, refers to the pricing structure for public EV charging stations operated by the electric utility. In a recent letter to the PUC, Ulupono advocated for a delicate balance between progress and practicality in EV charging infrastructure.
Ulupono commended the PUC’s rate design guiding principles, which aim to incentivize EV charging during peak solar generation hours, maintain cost competitiveness with gasoline, and promote equity by offering comparable rates for public and home charging. These principles align with Hawai‘i's clean energy goals and support the transition to electric transportation by keeping EV charging financially viable and accessible.
However, Ulupono cautioned against attempting to recover all infrastructure costs through the EV-U rate design, which could conflict with the PUC’s guiding principles above. Ulupono further suggested that the concern about subsidization by non-EV drivers may be overemphasized. Ulupono recommended:
- Alternative mechanisms for cost recovery;
- Designing rates with flexibility for future adjustments;
- Implementing a mechanism to reevaluate and revise rates based on market response;
- Monitoring equity concerns for those unable to take advantage of daytime charging rates; and
- Exploring strategic charging station locations to maximize daytime charging benefits.
Furthermore, separate rate designs for Direct Current Fast Chargers (DCFCs) and Level 2 chargers would better reflect their different use cases and cost structures.
The PUC’s careful consideration reflects its commitment to balancing the diverse needs of all stakeholders. Ulupono appreciates the PUC's diligence in navigating these complex issues and appreciates any efforts to expedite its eventual decision. As Hawai‘i progresses toward a more sustainable future, the collaborative efforts of the PUC, the utility, advocates, and engaged residents will be instrumental in creating a robust and accessible EV charging infrastructure that benefits all residents.