Lapping the EV Race

One Utility Out Front - Heads off Disruption

BY MARTIN ROSENBERG
Editor-in-chief, EnergyBiz

San Diego is leading the charge as utilities adapt to increased penetration of electric vehicles in their service area. To better understand the dimensions of the challenges and opportunities before the utility, I recently chatted with Michael R. Niggli, president of San Diego Gas & Electric.

ENERGYBIZ: How many electric vehicles are in your service territory and what are the main challenges you face as a result?

NIGGLI: Today, we have more than 3,300 plug-in vehicles on San Diego roads, and the numbers could grow quickly. However, the challenge for us is not necessarily the number as much as it is when the vehicles charge. Our goal is to make sure the vehicles are grid integrated, which means that the majority of charging will happen at times of day when the grid has an abundance of energy, and not at times when energy is scarce. With this kind of integration, charging costs and emissions will be lower due to more efficient use of the grid and our generation resources, which will help our customers realize the many benefits of these environmentally friendly vehicles. This concept of effective integration is vital because of the charging capability of each vehicle. Right now most of these vehicles can charge at a rate of about 3 to 7 kilowatts, and I know that some models just hitting the market are capable of charging at up to 20 kilowatts or more.

ENERGYBIZ: If the number of vehicles increases dramatically, how is that going to change your generation profile?

NIGGLI: We could accommodate a lot of them with existing generation, but the only way that will happen is with a very thoughtful rate structure program. Right now we are experimenting with at least three pilot rates in our area that look at variation between on-peak and off-peak pricing. The incentive you can give folks to charge off-peak really can make a huge difference. In fact, our time-of-use rates have shifted more than 80 percent of electric vehicle charging to the period between midnight and 5 a.m. As more and more electric vehicles plug into the grid, we will need a system that allows us to send signals to electric vehicle owners regarding the availability of low prices for charging their clean machines.

ENERGYBIZ: Why do you think San Diego is becoming a leader in adopting electric vehicles?

NIGGLI: Many of our customers are tech savvy, environmentally sensitive, early adopters of innovative products and services. They are literally driving the change to electric vehicles as a significant segment of our society. As noted previously, we�ve got more than 3,300 right now, and have about 400 publically accessible charging stations supporting their increased use in our city. We have a very active all-electric car-to-go program too, especially in downtown San Diego. As more electric vehicle charging stations continue to be installed, you will see a lot more people having a lot less anxiety about the range of the cars.

ENERGYBIZ: For a century, utilities have been very similar. That is no longer true.

NIGGLI: We are going to see rapid differentiation among the business models that you have around the country. I like to think that we have America�s finest innovators here in San Diego. In states where environmental improvements are a policy imperative, you will see more rapid adoption and integration of electric vehicles and solar power. The companies that will thrive are those whose culture allows them to readily adapt to some of these innovations. We are seeing that the culture differential is becoming really important.

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