The Illinois Commerce Commission announced a new report looking at the impact of electricity rate design on transportation electrification (TE), TE infrastructure adoption, and beneficial electrification (BE) and rate design options.
Initiated in August 2020, the commission said it wanted to identify the impact rate design had on electric service and electric service affordability.
“It’s highly anticipated that the number of EVs on Illinois roadways will continue to grow. As regulators, we initiated the NOI to identify barriers to EV expansion and to further explore the impact rate design has on electric service and affordability,” said ICC Chairman Carrie Zalewski. “This report will be extremely useful for regulators, policymakers, and others as we consider rate structures in the future.”
The Notice of Inquiry for the report asked respondents questions on whether or not they felt current rate designs would prevent single-family, multi-family, and low-to-moderate income residential customers from adopting and using EVs, as well as whether or not current rate designs prevent businesses and government units from adopting EVs and installing EV charging infrastructure. Respondents were also asked whether or not they favored providing incentives through rate design to incentivize the installation of charge infrastructure and the use of electric fleets.
Respondents provided numerous rate design issues and suggestions. ICC Staff may address some of the design issues in an ongoing Ameren Illinois proceeding, which involves a proposed time of use, EV-only tariff for delivery services. Staff is also recommending workshops on a more granular level to identify the pros and cons of the rate designs and identify features that encourage EV adoption and EV charging station deployment.
“Widespread adoption of EVs will be key for Illinois and other states to reach de-carbonization goals. The Commission has a role in encouraging the growth of EVs and ensuring electric rates are affordable for consumers. The information in this report will help us to make informed decisions and keep the discussion moving forward,” said ICC Commissioner Maria Bocanegra.