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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding
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elmatador
To: elmatador who wrote (2244)4/1/2019 1:03:55 PM
From: Elroy Jetson1 Recommendation  Read Replies (1) of 13782
 
As the preceding article notes, most of the "electric bill" paid by a privately-owned stand-alone car charger are "peak demand charges" with the cost of electricity being a small percentage of the total bill.

As a result, most car charging stations have been installed by major electrical customers like cities.

Because the spike in demand caused by car chargers is a small percentage of a large customer's total electrical usage so any increase in peak demand charges is small. Large customers with a demand spike problem can greatly reduce their bills with battery storage, but this is a very small part of their total infrastructure cost.

For a stand-alone car charging business . . .
Demand charges are responsible for as much as 90 percent of a public charging station’s monthly utility bill.
. . . and adding on the huge battery infrastructure that would be needed to balance out the demand for chargers alone would be cost prohibitive.

Utilities don't bill themselves for "peak demand charges" so, apart from cities, utilities were on track to become the monopoly owner of car chargers.

So until utility regulators decide what to do about "peak demand charges" privately-owned charging stations are not going to exist. This is what the 2016 article was really all about.

The even earlier editorial in the Los Angeles Times the article cited misunderstood the entire debate taking place at the time. To create private charging center the editorial proposed would require the elimination of "Demand Charges". Without the elimination of these charges, car charger will be owned primarily by utilities.
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The infrastructure installation charges of bringing electrical power lines to each customer varies hugely from a simple drop line charge to hundreds of thousands of Dollars for a new substation to supply a large customer depending on the location. A market dictated by these charges would see car chargers installed not where they're needed, but where existing power lines make infrastructure charges affordable.

This doesn't make sense as a matter of public policy, so the PUC has authorized infrastructure investment programs to make the cost of each car charging station the same, regardless of location, with additional subsidies for lower income neighborhoods where charging stations would not otherwise be built.
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