Vehicle rechargers escape utility regulation in California

August 2, 2010

Treating vehicle recharging stations as public utilities could have restricted their availability and competition in California, regulators said
Organizations that sell electricity to the public via electric vehicle recharging stations will not be regulated as “public utilities”, regulators have decided.

The California Public Utilities Commission has been evaluating alternative fuel transport policies in the state to ensure electricity providers are prepared for the expected state-wide growth in electric vehicles.

It said last week that it has decided that companies that sell electric vehicle charging services will not face the same requirements under the Public Utilities Code as power utilities just from the process of selling electricity to car drivers.

However, the decision does reserve the right for the Commission to act to ensure electric vehicle charging does not adversely affect the rest of the electric grid.

The Commission said its decision should help create a “vibrant market” for electric vehicle recharging in a state battling to improve air quality and reduce dependence on oil.

CPUC Commissioner Nancy E. Ryan said: “Consumers will not adopt electric vehicles without adequate charging infrastructure. This decision provides needed regulatory clarity to encourage the state’s entrepreneurs and investors to develop charging solutions that will satisfy consumer needs and work harmoniously with the electric grid.”

“Important precedent”

Electric vehicle recharging specialists said the ruling from California’s regulators should set an “important precedent” for other states to follow in order to support the move to cleaner transport.

Coulomb Technologies, a manufacturer of recharging stations based in Campbell, California, said treating a charging station as competitive access to the grid, rather than as a regulated utility meant the state could foster competition in the fledgling vehicle recharging market.

It would also help with “rapid deployment” of charging stations, the company added.

“This outcome will encourage competitive market forces to bring benefits to consumers and ensure rapid deployment of the charging infrastructure,” said Richard Lowenthal CEO of Coulomb Technologies.

“We applaud the decision as it not only enables a competitive framework for the California market, but will set an important precedent for other key states and for the nation.”