Tucson Electric Power Co. plans to amp up its support of charging systems for electric vehicles under a proposal before state regulators that includes pilot projects offering new charging options for school buses, multi-user “charging hubs,” nonprofit ride-share programs — and even electric bikes.
In a transportation electrification infrastructure plan tentatively up for approval by the Arizona Corporation Commission on Nov. 9, TEP plans to spend about $34.8 million over three years to continue existing rebate programs for charging equipment at homes and businesses and add new programs to help support projected EV growth.
Along with the federal government, utility regulators nationwide are scrambling to boost EV charging infrastructure as millions of new EVs are expected to hit the road, including more than 1 million new EVs in Arizona by 2030.
TEP launched a home EV charger rebate program as a pilot in 2019 and began offering rebates for commercial installations in 2020 and special rates for EV business fleet charging and commercial charger operators in 2021.
TEP’s EV implementation plan is designed to share the benefits of electric vehicles across a range of customers, with programs to support schools, nonprofit organizations and residential and small business customers in low-to-moderate income areas, TEP spokesman Joe Barrios said.
“We’re excited to support the development of charging infrastructure while raising awareness about the benefits EVs can provide, not only to their drivers but for our entire community,” Barrios said, noting that the programs will help improve the community’s air quality.
EVs at home
TEP has proposed continuing its EV support programs for residential customers, including its Smart EV Home program, which offers rebates of up to $500 for home charger installations (or up to $800 for low- to moderate-income customers), along with rebates for homes pre-wired for EV charging.
In its latest plan, the company wants to add a “managed charging” program, initially for 300 customers, that allows EV owners to adjust their charging behavior to avoid higher costs.
TEP proposes spending about $433,000 over three years on the residential rebate programs.
The utility also proposes to spend $631,000 for customer outreach, education and awareness programs over three years, kicking off with a $181,000 campaign in the first year.
The utility held off launching a major marketing campaign for its EV programs in 2020, as the COVID-19 pandemic took hold.
Tucson Electric Power runs down the benefits of owning an all-electric vehicle.
Charging up the fleet
TEP proposes to continue its Smart EV Program, which benefits commercial EVs and EV fleets and apartments with a per-port incentive up to 75% of project costs, with plans to deploy 600 ports over three years, including 270 ports for use by low- to middle-income users and nonprofits.
The company wants to make its multi-family EV offering more attractive by providing existing low- to middle-income qualifying projects an incentive to cover 100% of the project costs.
For new-construction multifamily housing, TEP plans for 250 parking spaces over three years with a $200 prewire cost offset per EV parking space, only where pre-wiring is not required by code.
To support the transition of public transit fleets to zero-emission buses, TEP proposes to provide incentives to offset charger costs and associated infrastructure and plans to support 45 buses over three years.
The utility also proposes to spend $1 million over three years to support “corridor charging” hubs qualifying under a $5 billion federal program to install EV chargers along the interstate highways, to cover unmet costs or to be applied toward a local matching-funds requirement.
The Arizona Department of Transportation recently rolled out its plan to spend $76.5 million in federal funding from the Bipartisan Infrastructure Bill over five years on EV charging facilities along all of the interstates in Arizona, including Interstate 19 in Southern Arizona.
Overall, TEP proposes to spend just under $18 million on its commercial EV programs over three years.
Bikes to buses
Among several new programs, TEP has proposed spending $126,000 over three years on a “micro mobility” program to provide rebates for the purchase of electric bicycles.
The company plans to hand out incentives of $600 per bike to 180 low- to moderate income customers and $100 each to 180 other planned participants.
TEP also plans a pilot school-bus program offering bus and charger purchase incentives, fleet phase-in planning and the installation of seat belts.
Other proposed pilot programs include:
A plan to work with companies such as Uber and Lyft to develop “charging hubs” to serve multiple users, with proposed rebates of $6,000 each for 10 “Level 2” chargers and $40,000 per 10 direct-current “fast chargers” over three years.
A program offering nonprofits that provide transportation services to seniors, workforce development program participants and lower-income customers rebates to offset the cost of vehicle purchases and incentivize the installation of charging infrastructure.
A “Public Rights of Way Charging” limited pilot to support the installation of EV charging stations on utility or light poles where certain customers may not be able to charge at their residence. TEP proposes to own those charging stations.
TEP also is proposing to offer commercial fleet customers 80% of the cost of EV advisory services; to add a “total cost of ownership” tool for fleet owners to its website; and to conduct an analysis of the impact of EV charging on its power grid.
TEPs EV plan has attracted support from a broad range of environmental, business consumer groups, as well as companies like EV makers Tesla and Rivian and charging network operators Electrify American and EVgo.
Diane Brown, executive director of the Arizona Public Interest Research Group Education fund, applauded the range of proposed EV programs and said the plans promote private investment, which can lead to new jobs and boost the local economy.
“Through Commission adoption of the transportation electrification plans, TEP and UNSE ratepayers will benefit through better utilization of the electric grid — which can lead to utility bill savings, as well as improvements to air quality,” Brown said.
In a proposed order filed last week, the commission’s Utilities Division staff recommended approval of TEP’s plan, with some modifications.
The ACC staff urged the commission to require the company to supplement its plan with a “high” EV adoption rate, assuming 1,479,000 EVs statewide by 2030.
TEP based its plan on a “medium” projected EV adoption rate of 1,076,000 light-duty EVs in Arizona by 2030 (including 95,000 in TEP territory).
The staff also recommended that TEP track its costs for the EV plan and recover them in a future rate case.
UES programs
The Corporation Commission also will consider a transportation-electrification plan filed by Unisource Energy Services, a sister company to TEP that provides power to customers in Santa Cruz and Mohave counties.
UES plans to continue its existing residential EV charger incentive programs, which are similar to TEP’s.
The company also is seeking approval of new “super off-peak” rates to help customers save money by charging their EVs during the lowest demand period, similar to TEP’s offerings.
UES also is seeking approval for new programs, similar to TEP’s, to provide rebates for EV charging equipment for commercial and lower-income customers and public fleets, as well as special rates for commercial EV fleet charging.
The company plans to spend about $1.3 million over three years on its EV programs, including $828,500 for rebates.
The ACC staff has recommended approval of the UES plan, similarly requiring the company to supplement its filing with a high EV adoption-rate scenario.
