Transportation

California EV Charging Regulations Don’t Forbid Per-Minute But Are Still Dumb “Gasoline Thinking.”


The Electric vehicle world has been abuzz about reports that new California regulations, adopted just two weeks ago and in theory coming into effect Jan 1 will:

  1. Forbid charging by the minute for charging, as EVgo and others do.
  2. Displays on all chargers like a gas pump, showing price, plus the cost and amount of energy dispensed, as Tesla doesn’t do at superchargers.

Fortunately, if you read the regulations and statement of reasons correctly, there is no panic:

  1. The regulations don’t apply to existing chargers, nor chargers installed in the next 1-3 years, until 2033.
  2. The regulations only block charging by the minute for energy. They allow charging by the minute or session for time in the charging space, for example.

As such, there is no big change coming soon. Nonetheless, the regulations do deserve some criticism, for they reflect 20th century “gasoline thinking” and ignore just how different electricity is as a “motor fuel” compared to gasoline.

Charging by the minute

Some charging networks today bill by the minute. People don’t like this because cars take electricity at different speeds, based on what car you have and how full the battery is. The last 20% of a fill-up can take as many minutes as the middle 50%, and thus cost as much for much less electricity. As such, people naturally dislike it. On the other hand, many charging stations were very expensive to install, and the electricity is a smaller part of the price. Those stations feel they are selling time at the station more than electricity. That’s especially true at a popular station where people are waiting who would like to discourage drivers from topping up that last 20% at a very slow rate.

Traditional “motor fuel” regulation, which is what was relied on in these new rules, says that electricity is your motor fuel, and it must be sold the same way as gasoline is — a flat rate per unit, and with a display showing what you are “pumping.” Thus the regulations which state that, when selling electricity, you must sell it as electricity, and charge the same for each kwh.

The error made by many press is that this rule only says there must be a flat and displayed rate for the electrical energy. It does not prohibit an extra charge for parking in the charging station or plugging in. It may not even prohibit a per minute charge for being plugged in. This can be on top of the electricity. The electricity can even be free, leaving the driver with only a per minute charge. It does require that electricity and other charges be split out on the bill and pricing displays. Charging stations with free electricity (and often with paid parking) are quite common.

As such, this is a change in how you bill and express the bill, not in the price you pay. It just means it may get a bit more complicated for the public. There is some value in that – per minute charging has indeed left some people with price shocks when they look at the total bill including the slow charging near the end. It is good to not leave customers with surprises.

In addition, this ignores the way electrical energy is sold in its many markets. In the real wholesale electrical markets, the price of energy can vary wildly based on current demand and supply. Even in houses it changes based on the time of day, and people expect that to become more common. Commercial electrical customers pay not just for their energy but their peak demand — it costs a lot more if you need a whole lot of electricity at once. It’s just not at all sold like a commodity like gasoline.

Pricing for electricity at EV chargers is also all over the map. Many chargers are subsidized (and their install was subsidized) and they give out free electricity. Others charge 2x or 3x the retail rate. While there are many that charge by the kwh, many of those have unusual rules, like prices that change depending on how long the session is. They have idle fees for sitting around after you stop charging. They charge different customers different rates. Much of this is quite unlike gasoline.

Now charging both by the kwh (at the prevailing rate) and by the minute actually does make a lot of sense for some stations, particularly busy ones. The main reason you don’t see this is companies and customers like simpler pricing models. The regulations imagine they are making it as simple as gasoline. They make it worse.

Not for a long time

The best reading I make of the regulations say that when it comes to DC Fast chargers, these regulations don’t apply to existing chargers (and chargers installed for the next 3 years) until 2033. You read that right, 2033. When, I can guarantee you, the world of EV charging will be unrecognizable by today’s standards, and any rule written today will seem silly. New installs in 2021 (Level 2 AC) or 2023 (Level 3 DC Fast) need to follow the new rules. As such, these rules don’t affect the current Tesla supercharging network or EVgo networks at all, they just potentially affect new stations in 1-3 years.

Displaying as you fill

Those who have used Tesla superchargers love their simplicity. They have no display on them. You swipe no credit cards and use no app. You just plug in and charge. You do see a display on your car screen of how the energy is flowing in. You can also see that in your phone. The new regulations (for future stations, not current ones until 2033) will demand a display on the face of the charger with the price and, like a gas pump, how much you have “pumped” and what it costs. When I say like a gas pump, I mean it literally — these regulations are all justified by noting that since gas pumps have to do this, electricity dispensers also must do it. This is “gasoline thinking” and it does not belong in the world of EVs.

Instead, the regulators should look at the spirit of the gas pump regulations, not the mechanism. What matters is that price is clearly conveyed and understood. Not how this is conveyed.

Buying energy for an EV is a different experience. You don’t wander around and happen to run across a charging station, noting its price and pulling into a good one to “fill up.” First of all, for modern >200 mile range EVs, you avoid charging stations in your home city unless the charger is free. Why would you want to pay 2x to 3x the price you pay at home or work when you have more than enough range to get back there? When you do charge (on rare days or because you have a low-range car) you don’t shop by looking at stations, you shop in an app, and the location of the charger is 99% of how you choose and the price is 1% unless it’s obscene. You either need the electricity (and will pay even 5x your home price) or you don’t need it and won’t pay for it at all. Location is so important that people (when they need it) will pay 2x their home price for a charger located where they are visiting than plug in a free charger 1/4 of a mile away. (People routinely drive a mile out of their way to save 3% on the price of gasoline.)

It’s different on long road trips, where you want to charge fast and charge at your hotel. At your hotel, again you care only that the charging is at the hotel. You plan your fast charging using an app or the in-car software, and when the day comes that you shop on price, you’ll see that price in those apps and use it to pick your station long before you get to it. Having the price displayed on the station is not wrong, per se, but an anachronism.



READ NEWS SOURCE

This website uses cookies. By continuing to use this site, you accept our use of cookies.