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US Utilities Offer EV Tariffs to Increase Customer Engagement

2014-07-28_13-24-56Twenty-five electric utilities across 14 states – including eight of the 15 largest — are now offering electric vehicles rates and tariffs as part of an effort to engage the growing number of customers who drive electric vehicles, according to a study by Northeast Group.

In the Midwest, Minnesota has taken the additional step to mandate that electric utilities offer EV tariffs.

EV rates generally offer steeper discounts at night and during other off-peak hours. Among the 14 states with EV tariffs, the average equivalent “price per gallon” was $0.75. The US Department of Energy calculates that without the EV-specific tariffs, the cost of an “eGallon” would be $1.42. The average cost of gasoline in these states is $3.70.

According to Ben Gardner of Northeast Group, EV owners tend to be more engaged customers, and it is critical that utilities provide them with new rate options for their EVs.

EV sales have roughly doubled each year for the past three years, and a number of companies are seeing the various benefits of greener travel.

While EV sales continue to be strongest in Los Angeles, recent market analysis reveals that EV sales are rapidly on the rise in both Atlanta and Washington, D.C.

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