Why Duke Energy says NC should OK its $76 million investment in electric vehicle charging program

Duke Energy Corp. says the Public Staff's criticism of its electric vehicle charging pilot is misplaced.

By John Downey

Senior Staff Writer, Charlotte Business Journal

Aug 12, 2019, 2:52pm EDT

Updated Aug 12, 2019, 2:55pm EDT

Citing broad support from environmental groups and related industries, Duke Energy Corp. asks regulators to ignore criticisms from the state's utility customer advocate and approve its proposed $76 million pilot program for public and private electric vehicle charging.

Duke has proposed a three-year pilot program to develop commercial charging stations and encourage home and business-based charging for the vehicles. The program would also encourage school and public transit systems to expand electric bus use by assisting in establishing charging station for their fleets.

In a filing with the N.C. Utilities Commission late Friday, Duke lists 21 groups as diverse as the city of Asheville, the Alliance of Automobile Manufacturers and Environmental Defense Fund who have substantially supported the proposal through either formal regulatory comments or endorsement letters. And even more strongly in that it did in originally proposing the pilot last April, Duke wraps its proposal in in the banner of Gov. Roy Cooper's late 2018 order (Order No. 80) establishing a series of clean energy goals for the state.

"Yet, despite this overwhelming public support, the Public Staff (of the) North Carolina Utilities Commission, the North Carolina Sustainable Energy Association, and the North Carolina Clean Energy Business Alliance have disappointingly chosen to oppose Duke Energy's efforts to fulfill Governor Cooper's clear directive," the filing says.

'Less understandable'

Duke contends that NCSEA and NCCEBA oppose the proposal because "their membership includes potential market entrants who believe, incorrectly so, that their businesses will be helped by excluding or limiting Duke Energy's participation in this developing market."

"The Public Staff's strong opposition is less understandable because it is clearly inconsistent with the State's policy directives ... and based on over-reliance on traditional ratemaking concepts that ignore the realities of a changing environment," Duke says.

Duke dismisses the Public Staff's contention that its pilot is designed is a gambit to get regulatory approval for capital investments before the money is spent, contrary to the state's standard practice.

"Such an analysis is clearly based on form over substance," Duke responds. "When an innovative and transformative technology is being introduced, a more comprehensive and visionary analysis is required to represent the using and consuming public."

Duke's filing goes on to say "Order No. 80 serves as a clarion call for North Carolina to continue its status as a leader in addressing climate change and clean energy. ... Heeding that call, (the pilot program) is a major initiative led by North Carolina's two largest electric utilities that is a fundamental part of State policy, and rejecting the proposal because it has the wrong designation is simply not reasonable."

The filing argues that potential competitors in developing commercial charging stations such as Electrify America LLC and Charge Point Inc. generally support the proposal. And Duke cites "Sierra Club estimates that the creation of a mass market for transportation electrification will produce a $6.9 billion benefit for North Carolina and help meet the long-term goals for a reduction in greenhouse gases."

Duke Energy Carolinas and Duke Energy Progress propose to offer $1,000 rebates to as many as 800 residential customers for installation of vehicle-charging stations at their homes and provide rebates of up to $2,500 each to as many as 900 commercial and institutional customers to help with the costs of installing charging stations.

They propose to build and operate 120 fast-charging electric "fueling stations" along major highways across the state and 320 public chargers that would connect to a 240-volt power line. Those would all be commercial operations where Duke charges customers to recharge their batteries.

And they would provide up to $75,000 to help school systems buy a total of 85 electric buses and to provide rebates to help schools and city utilities to install charging station for electric buses.

Duke's filing contends all the proposed programs "are crucial to achieving the goals of the ... pilot," it says its is willing to compromise. Responding to Public Staff concerns about the size of the program, it would consider cutting back on some charging stations at apartments and other public charging stations to save $4.1 million. It would also be willing to reduce the $1,000 rebate for home charging stations to $500, as suggested by NCSEA, so long as Duke would be free to later ask the commission to increase the rebate should $500 prove too small to attract potential customers.

The filing asks the commission to approve the full program, or the program with the proposed reductions, and allow the company to compile data that it can use, working with a group of stakeholders that would include many of the groups that have commented on the proposal, to develop permanent electric transportation programs for the state.