Delmarva Power was given approval by the Delaware Public Service Commission to begin offering new electric vehicle services for residential customers and public spaces.
As part of the efforts to reduce the impacts of climate change and drive interest in cleaner transportation options, Delmarva Power will expand public charging infrastructure and offer a new rate option for residential customers who charge their EVs at home.
“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.”
Growing demand for EVs requires more charging infrastructure and enhancements to the state’s electric infrastructure. More than 5 million EV chargers will be required to support the projected 7 million EVs on the road across the country by 2025, according to the Edison Electric Institute. 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 siting 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. Electricity provided through the chargers will be from 100% renewable energy sources and their locations will be determined by Delmarva Power, Commission Staff, Division of the Public Advocate and Delaware Department of Transportation.
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% renewable energy for their residential EV charging through this offering. This innovative new rate option offers customers potential cost savings for charging an EV during “off-peak” hours, including nighttime. Currently, most customers pay a flat rate for their energy use no matter when they use it. Through this rate option, customers are charged a higher rate during the 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. This 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.
Similar to other energy services and investments Delmarva Power makes in the local energy grid, these new services will be paid for through delivery charges on customer bills. The program is expected to cost about $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 the course of 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 important 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.
For more, visit delmarva.com.