{"id":17336,"date":"2019-03-27T07:18:59","date_gmt":"2019-03-27T12:18:59","guid":{"rendered":"https:\/\/www.citizensutilityboard.org\/?page_id=17336"},"modified":"2019-03-27T07:27:50","modified_gmt":"2019-03-27T12:27:50","slug":"electric-vehicles-could-lower-power-bills-for-all-illinois-residents-new-study-finds","status":"publish","type":"page","link":"https:\/\/www.citizensutilityboard.org\/electric-vehicles-could-lower-power-bills-for-all-illinois-residents-new-study-finds\/","title":{"rendered":"Electric Vehicles Could Lower Power Bills for All Illinois Residents, New Study Finds"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column width=&#8221;5\/6&#8243;][vc_custom_heading text=&#8221;Electric Vehicles Could Lower Power Bills for All Illinois Residents, New Study Finds&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]<ul class=\"icon \"><li><i class=\"fa fa-caret-right\"><\/i> <a href=\"https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2019\/03\/2019327_ElectricVehicleReportFinal.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>PDF version<\/strong>\u00a0<strong>of this release<\/strong><\/a><\/li><\/ul>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]<strong><em>State\u2019s Utility Customers Could Capitalize on $2.6 Billion in Cumulative Benefits in Next Decade if <\/em><em>Policy Makers Encourage \u201cEV\u201d Owners to Charge at Right Time<\/em><\/strong><\/p>\n<p><strong>FOR IMMEDIATE RELEASE: <\/strong>March 27, 2019<strong><br \/>\nCONTACT:<\/strong> Jim Chilsen (o) 312-263-4282, (c) 312-513-1784<\/p>\n<p>The robust growth projected for the U.S. electric vehicle (EV) market will usher in lower electric bills for all Illinois consumers\u2014including those who don\u2019t own a car\u2014if policy makers adopt key measures necessary to unleash the savings, according to an analysis released Wednesday by the Citizens Utility Board (CUB).<\/p>\n<p>The research is believed to be the nation\u2019s first analysis conducted by a consumer watchdog group into how the surging popularity of EVs on American roadways will impact electric customers and the power grid. The study, <a href=\"https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2019\/03\/Charging-Ahead-Deriving-Value-from-Electric-Vehicles-for-All-Electricity-Customers-v6-031419.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><strong><em>Charging Ahead: Deriving Value from Electric Vehicles For All Electricity Customers<\/em><\/strong><\/a>, is posted on the Research page of <a href=\"https:\/\/www.citizensutilityboard.org\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>CitizensUtilityBoard.org<\/strong><\/a>. (Read a summary of the study <a href=\"https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2019\/03\/2019327_EVReportSummary.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>here<\/strong><\/a>.)<\/p>\n<p>Based on data reflecting actual electricity-usage patterns in Illinois, the study found that consumers could reap more than $2.6 billion in cumulative benefits on their power bills by 2030, if state officials establish policies that encourage motorists to charge their cars during times of the day when there is less strain on the power grid and electricity prices are at their lowest.<\/p>\n<p>But if legislators and regulators don\u2019t implement smart charging policies\u2014and EV owners charge their cars during periods of higher power demand\u2014they risk increased stress on the grid and higher power bills. The study\u2019s authors estimate that anticipated EV proliferation could increase Illinois power bills by up to $856 million if nothing is done to encourage smart charging.<\/p>\n<p>The report emphasizes that policy makers\u2014not only in Illinois, but also throughout the country\u2014will determine whether utility consumers capitalize on the savings, as EVs multiply coast to coast.<\/p>\n<p>\u201cWhile the EV revolution is still in its infancy, we\u2019re already approaching a crucial crossroads in how to manage the ripple effects on our electricity costs,\u201d said CUB Executive Director David Kolata. \u201cThis research shows that escalating EV sales could lead to lower utility bills for everyone.\u00a0 To ensure that we seize this opportunity for savings, the public can\u2019t afford for their policy makers to wait.\u00a0 Action is needed now to set policies that help EV owners charge their cars in a way that benefits everyone.\u201d<\/p>\n<p>The report\u2019s recommendations constitute a policy blueprint that states should embrace in a quest to maximize the savings potential.\u00a0\u00a0 Foremost among them is a call for states to automatically enroll EV owners in \u201cdynamic\u201d pricing programs, where rates vary depending on the time of day when power is consumed. These rates could apply only to the cost of powering the EV\u2014other household usage would be billed separately according to whatever pricing plan the customer chooses\u2014and car owners could opt-out of the program.<\/p>\n<p>While electricity is most often billed under a fixed rate that rarely changes, dynamic prices fluctuate over the course of the day, as the total volume of demand on the system swells and dips. By funneling EV owners into dynamic plans on an opt-out basis\u2014they could unsubscribe at any time\u2014utilities can ensure the grid digests added demand from EVs without necessitating new expenditures on increased generation capacity or enhanced transmission and distribution infrastructure.\u00a0 EV owners, meanwhile, would benefit from electricity priced far lower than the regular fixed rate.<\/p>\n<p>The report specifically advocates for automatically enrolling EV owners in a \u201cTime of Use\u201d (TOU) pricing program. A TOU plan would charge different rates for different blocs of time during the day, allowing EV owners to plan their charging when the price is lowest.<\/p>\n<p>\u201cWe think TOU rate plans are one of the most practical forms of dynamic pricing, but there are many others,\u201d Kolata said.\u00a0\u00a0 \u201cThe key point for policy makers is that we can harness money-saving power from EVs if we provide car owners with pricing plans that encourage them to charge their cars overnight when the grid is brimming with unused and extremely cheap electricity.\u201d<\/p>\n<p>In a separate analysis of 2016 and 2017 data, CUB found that EV owners on one dynamic pricing plan could cut their electricity supply costs by more than 50 percent.<\/p>\n<p>There are about 15,000 EVs in Illinois today, but the new study projects that number could surge to at least 690,000 by 2030\u2014and it could catapult to as high as 2.2 million if the state embarks on an aggressive effort to reduce carbon emissions during the same time period. Such efforts have been discussed in the nation\u2019s capital as well as the Illinois Legislature, which is now considering a measure, the Clean Energy Jobs Act, that would promote EV growth in Illinois.<\/p>\n<p>Those sales estimates formed the basis for the utility bill savings that the report attributed to EVs. The estimated $2.6 billion in total benefits reflect three different factors:<\/p>\n<ul>\n<li>$2 billion in lower costs for energy consumption.<\/li>\n<li>$124 million in lower costs for investments in \u201ccapacity.\u201d (Capacity refers to long-term purchase agreements a utility makes to ensure there is enough power available to meet future projected demand.)<\/li>\n<li>$536 million in additional utility revenue, allowing rate reductions of up to 12 percent.<\/li>\n<\/ul>\n<p>\u201cElectric vehicles produce many rewards for the public at large, including a reduction in pollution from autos and diminishing dependence on foreign oil,\u201d Kolata said.\u00a0 \u201cOur analysis shows that EVs not only allow drivers to charge a car at a much lower cost than to fill at the pump, but they also have the potential to keep a lid on electric bills for all consumers.&#8221;<\/p>\n<p>CUB is celebrating its 35<sup>th<\/sup>\u00a0anniversary as Illinois\u2019 leading nonprofit utility watchdog. Created by the Illinois Legislature, CUB opened its doors in 1984 to represent the interests of residential and small-business utility customers. Since then, it has saved consumers more than $20 billion by helping to block rate hikes and secure refunds. For more information, call CUB, 1-800-669-5556, or visit <strong><a href=\"https:\/\/www.citizensutilityboard.org\/\">CitizensUtilityBoard.org<\/a><\/strong>.[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column width=&#8221;5\/6&#8243;][vc_custom_heading text=&#8221;Electric Vehicles Could Lower Power Bills for All Illinois Residents, New Study Finds&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text][\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]State\u2019s Utility Customers Could Capitalize on $2.6 Billion in Cumulative Benefits in Next Decade if Policy Makers Encourage \u201cEV\u201d Owners to Charge at Right Time FOR IMMEDIATE RELEASE: March 27, 2019 CONTACT: Jim Chilsen (o) 312-263-4282, (c) 312-513-1784 The robust growth projected for the U.S. electric vehicle (EV) market will usher in lower electric bills for all Illinois consumers\u2014including those who don\u2019t own a car\u2014if policy makers adopt key measures necessary to unleash the savings, according to an analysis released Wednesday by the Citizens Utility Board (CUB). The research is believed to be the nation\u2019s first analysis conducted by a consumer watchdog group into how the surging popularity of EVs on American roadways will impact electric customers and the power grid. The study, Charging Ahead: Deriving Value from Electric Vehicles For All Electricity Customers, is posted on the Research page of CitizensUtilityBoard.org. (Read a summary of the study here.) Based on data reflecting actual electricity-usage patterns in Illinois, the study found that consumers could reap more than $2.6 billion in cumulative benefits on their power bills by 2030, if state officials establish policies that encourage motorists to charge their cars during times of the day when there is less strain on the power grid and electricity prices are at their lowest. But if legislators and regulators don\u2019t implement smart charging policies\u2014and EV owners charge their cars during periods of higher power demand\u2014they risk increased stress on the grid and higher power bills. The study\u2019s authors estimate that anticipated EV proliferation could increase Illinois power bills by up to $856 million if nothing is done to encourage smart charging. The report emphasizes that policy makers\u2014not only in Illinois, but also throughout the country\u2014will determine whether utility consumers capitalize on the savings, as EVs multiply coast to coast. \u201cWhile the EV revolution is still in its infancy, we\u2019re already approaching a crucial crossroads in how to manage the ripple effects on our electricity costs,\u201d said CUB Executive Director David Kolata. \u201cThis research shows that escalating EV sales could lead to lower utility bills for everyone.\u00a0 To ensure that we seize this opportunity for savings, the public can\u2019t afford for their policy makers to wait.\u00a0 Action is needed now to set policies that help EV owners charge their cars in a way that benefits everyone.\u201d The report\u2019s recommendations constitute a policy blueprint that states should embrace in a quest to maximize the savings potential.\u00a0\u00a0 Foremost among them is a call for states to automatically enroll EV owners in \u201cdynamic\u201d pricing programs, where rates vary depending on the time of day when power is consumed. These rates could apply only to the cost of powering the EV\u2014other household usage would be billed separately according to whatever pricing plan the customer chooses\u2014and car owners could opt-out of the program. While electricity is most often billed under a fixed rate that rarely changes, dynamic prices fluctuate over the course of the day, as the total volume of demand on the system swells and dips. By funneling [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"class_list":["post-17336","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages\/17336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/comments?post=17336"}],"version-history":[{"count":0,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages\/17336\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/media?parent=17336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}