California Public Utilities Commission approves San Diego Gas & Electric’s innovative “Vehicle-Grid Integration” program
San Francisco — Yesterday, the California Public Utilities Commission voted to approve San Diego Gas & Electric’s innovative “Vehicle-Grid Integration” program. Under the program, SDG&E will deploy 3,500 charging stations in the San Diego area, and, through special “dynamic pricing,” encourage charging during off-peak hours or when renewable energy is abundant–maximizing fuel cost savings for EV drivers.
The favorable decision for SDG&E’s $45 million project comes just two weeks after the Commission approved the pilot phase of Southern California Edison’s “Charge Ready” program – a plan to deploy 1,500 charging stations within its service territory. In the second phase, SCE aims to deploy another 28,500 stations. Together, these programs mark important steps forward at a critical time for the electric vehicle market in the state, where Governor Brown has set a goal to deploy infrastructure to support 1 million electric vehicles by 2020 and to have 1.5 million on California’s roads by 2025.
“With this decision, California continues to speed ahead in the all-important race to power our vehicles with clean electricity,” said Joe Halso, Sierra Club attorney. “We applaud the California Public Utilities Commission and all involved for crafting and approving a program that works for the environment, public health, and all San Diego electricity users.”
Through strong vehicle-grid integration, SDG&E’s program should unlock economic benefits for all utility customers. The added utility revenue generated by use of spare system capacity puts downward pressure on utility rates to the benefit of all utility customers. By using EV load to absorb renewable energy, thereby matching demand with generation, the program lowers the costs of complying with state’s 50 percent Renewable Portfolio Standard.
“Plugging in electric cars to soak up the sunshine in San Diego benefits everyone. Now all we need is more convertibles with plugs,” said Max Baumhefner, Natural Resources Defense Council attorney.
Both the “Vehicle Grid Integration Program” and “Charge Up” plan to deploy stations at sites where there is currently a lack of charging infrastructure, in particular workplaces and multi-unit dwellings, like apartment complexes. The “Vehicle Grid Integration Program” will also deploy 10 percent of stations in disadvantaged communities in SDG&E’s territory, improving access to clean transportation options for those often exposed to greater levels of harmful air pollution.
The proposal approved yesterday is based on a settlement agreement supported by SDG&E and 17 organizations, including the Sierra Club, National Resources Defense Council, Environmental Defense Fund, The Greenlining Institute, consumer groups, EV drivers, automakers, EV charging companies, and labor unions.
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