Michigan Moves to Define Its Role in the PEV Marketplace

In an effort to clarify its regulatory role in addressing issues arising as the electric vehicle market continues to develop, the Michigan Public Service Commission has solicited additional input on topics related to the adoption of plug-in electric vehicles (PEVs) in Michigan and the deployment of associated infrastructure and technology.

However, the commission stressed, because of its role as a utility regulator, it is not in a position to promote the adoption of PEVs. At the same time, though, the commission stated that it is intent on proactively identifying and addressing regulatory barriers within its purview related to charging infrastructure. It maintained that it also is striving to provide guidance to utilities and other stakeholders to ensure that any associated utility programs and rates can provide a benefit for all customers.

The commission commented that it sees as perhaps the biggest barrier to PEV penetration the “chicken and egg” nature of PEVs and deployment of charging infrastructure. That is, it explained, utilities and others may not be inclined to invest in charging infrastructure until there are enough electric vehicles on the road to make it worth their while. Conversely, consumers may not be willing to purchase a PEV if they are not confident they will be able to easily refuel. As a starting point, however, the commission outlined several nearterm actions that could be taken to encourage further PEV deployment:

• Underscoring that sales of electricity for PEV charging purposes do not qualify as a sale for resale (in an earlier case, the commission endorsed a staff recommendation that the sale of electricity by electric vehicle charging station owners should not be treated as a resale of electricity under a utility’s tariff provision);
• Ensuring that utilities are positioned to provide customers clear, accurate information and education on the cost of electricity and associated payback of a PEV under various electric rate options; and
• Examining potential changes to existing PEV tariffs as well as possible new rate design options, including the use of dynamic or timevarying rates for public charging infrastructure.

The commission remarked that it first began looking at the issue of PEVs back in 2010, when it created the Michigan Plug-in Electric Vehicle Preparedness Task Force and thereafter approved initial electric vehicle tariffs for several regulated electric utilities.

Looking at how some individual utilities have responded to growing interest in electric vehicles, the commission drew attention to Consumers Energy Company’s most recent electric rate case, in which it had proposed to add $10.625 million to its rate base to cover the installation of 30 fast chargers and 750 charging stations. The utility also recommended the offering of a $1,000 incentive to those electric customers who purchase or lease a PEV and install an at-home charging station, capped at 2,500 rebates.

The commission acknowledged that Consumers Energy ended up withdrawing its PEV proposal. But, the commission stated, the utility had signaled that it would be willing to participate in a future collaborative on PEV-related issues in Michigan. Re Deployment of Plug-In Electric Vehicle Charging Facilities, Case No. U- 18368, Oct. 25, 2017 (Mich.P.S.C.).