- California regulators approved a plan to spend $437 million on electric vehicle charging stations, despite complaints from consumer advocates and environmental groups.
- The plan, proposed by Southern California Edison, aims to install 38,000 chargers in homes, businesses, and public places over the next four years, as part of the state’s goal to have 5 million zero-emission vehicles on the road by 2030.
- The plan was opposed by groups who argued that it would raise electricity rates for customers, favor wealthy EV owners, and undermine community choice programs that offer cleaner energy options.
Why it matters: California is the largest EV market in the U.S., accounting for nearly half of the nation’s EV sales. The state needs to expand its charging infrastructure to meet the growing demand and to reduce its greenhouse gas emissions from transportation, which is the largest source of pollution in the state.
The big picture: California has been a leader in promoting clean energy and fighting climate change, but it also faces some challenges and trade-offs. The state has to balance its environmental goals with its economic and social realities, such as the affordability and equity of its energy policies, the reliability and resilience of its power grid, and the involvement and participation of its diverse stakeholders.
By the numbers:
- The plan will add about $0.36 to the average monthly bill of Southern California Edison’s residential customers, according to the utility.
- The plan will provide rebates and incentives for low-income and disadvantaged communities to access EV chargers, as well as for medium- and heavy-duty vehicles such as buses and trucks, according to the utility.
- The plan will increase the state’s EV charging capacity by about 25%, according to the California Public Utilities Commission.
What they’re saying:
- “This decision is a win for clean air, public health and the economy. It will help accelerate the transition to electric transportation and support California’s climate and clean energy goals,” said Pedro Pizarro, president and CEO of Edison International, the parent company of Southern California Edison, in a statement.
- “This decision is a loss for ratepayers, local governments and the environment. It will raise electricity costs for everyone, subsidize wealthy EV owners, and undermine community choice programs that offer cleaner and cheaper energy alternatives,” said Mark Toney, executive director of The Utility Reform Network, a consumer advocacy group, in a statement.
- “This decision is a mixed bag for California. It will boost the EV market and reduce emissions, but it will also create some challenges and risks, such as the impact on electricity rates, the fairness and effectiveness of the rebates and incentives, and the coordination and integration of the charging stations with the grid and the market,” said Severin Borenstein, professor of business administration and public policy at the University of California, Berkeley, in an interview.
What’s next: The plan will take effect in February 2024, and will be implemented over four years. The utility will report on the progress and outcomes of the plan to the regulators and the public. The plan could also face some legal challenges from the opponents, who may seek to overturn or modify the decision.
