DENVER, Colorado (May 30, 2019) – As Colorado begins to pursue its goal of nearly one million electric vehicles (EVs) in use in the state by 2030, Xcel Energy wants to make sure we are doing our part. Late last week Xcel Energy proposed a new pricing methodology that would encourage commercial fleets and transit agencies to electrify their vehicle fleets, and would also remove a barrier to the development of the public fast charging market. The proposal was made to the Colorado Public Utilities Commission (CPUC) who will review and determine if this rate is reasonable and should go forward or be modified. 

Under the proposed pricing, Xcel Energy would switch commercial EV charging rates to a “time of use rate” that would enable lower energy bills for commercial EV fleets and public fast chargers by as much as 50 percent in some cases. The proposed pricing encourages off-peak charging (9 p.m. to 9 a.m.), especially during critical periods of high demand, like in the middle of a hot summer day. The proposal would also lower the existing demand charges by up to 72 percent.  

“Our customers and communities have clearly indicated that they support a move to electric vehicles. This desire is clearly aligned with our continued clean energy progress and affordable customer costs,” said Jack Ihle, director for regulatory and strategic analysis.  

Xcel Energy believes that the new commercial EV rate recognizes the unique operating demand of charging and will benefit many non-residential EV charging applications. Further, the proposed rate ensures that EV operations pay their way for costs incurred and are not offset by broader customer classes.   

“RTD is excited that Xcel is creating an electric vehicle rate for customers like RTD that have such fleets,” said General Manager and CEO Dave Genova. “Since RTD deployed 36 electric buses on the 16th Street Mall in 2017, our agency has paid high electricity costs to charge these vehicles. We are hopeful that this new rate will lower the cost of operating our fleet of zero-emission buses, and we look forward to working with Xcel to make transit electrification more financially feasible.” 

As examples of the proposed rate structure, Xcel Energy noted commercial fleet vehicle operations with a monthly peak of 1,000 kilowatt-hours and use of 108,000 kilowatt-hours per month could lower their average monthly per kilowatt-hour charge by 35 percent, to 14 cents per kilowatt-hour from 22 cents. Public fast-charging stations with a monthly peak of 50 kilowatts and monthly use of 1,800 kilowatt-hours could lower their monthly kilowatt-hour cost by 50 percent, from 61 cents per kilowatt-hour to 30 cents per kilowatt-hour.

Xcel Energy also noted that its proposed new tariff is designed for EV charging only. Those who move to this rate would need additional metering equipment, but there would be no size or quantity limitations. Those with current demand under 25 kilowatts a month would not utilize these new tariffs but would fall under a small commercial rate (which does not have a demand charge). 

If approved by the CPUC, the new rates for EV charging of public fast-charging or fleet vehicle operations would go into effect in January, 2020.

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About Xcel Energy

Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.