POWER April 2011 - 80

COMMENTARY
Electricity: A Fuel of the Future
By Rick Tempchin
T
he recent tensions in the Middle East and their impact on oil
and gasoline prices remind us that the U.S. remains heavily
dependent on foreign nations-some of them unstable-to
meet many of our energy needs. Of course, oil will continue to
have an important place in our energy mix, and expanding our
domestic reserves makes sense.
But the nation's electric companies also have a major role to
play in securing our energy future. The transformation of the
nation's transportation fleet to one fueled in large part by domestically
produced electricity can help wean the U.S. from its
dependence on foreign energy sources.
Electric Vehicles' Development Accelerates
Plug-in electric vehicles (EVs) already are hitting major U.S.
markets as car manufacturers join electric utilities in embracing
electricity as the transportation fuel of the future. Edison
Electric Institute and its member electric power companies are
committed to making the new EVs a success. A significant part of
our readiness effort is ensuring that consumers understand their
options when it comes to charging their new EVs, as well as the
impact their new cars will have on the grid.
All the new EVs will come with a standardized cable that can
be plugged into a wall outlet, so you can be ready to charge at
any time. This " Level I " charger, as it is called, uses 110 volts
and will fully recharge your new electric car in 5 to 20 hours,
depending on the size of the car's battery. If you want a faster
recharge, a " Level II " charger can get the job done in 4 to 6
hours.
The Level II charger uses 208-240 volts and requires a special,
heavy-duty electric outlet, similar to the one used for clothes
dryers. Typically, the cost to buy and install a Level II outlet is
between $1,000 and $2,000. No separate meter will be needed.
Public charging stations are starting to come online as well.
Many electric utilities are involved in The EV Project (www
.theevproject.com) and similar initiatives to create a public
charging infrastructure as well as electrified corridors along major
interstate highways.
Several office buildings and retailers in the states first receiving
the new plug-in EVs are now installing chargers in their
parking garages. Keep in mind, however, that most people drive
fewer than 35 miles per day-well within the range of a fully
charged EV. Therefore, for the vast majority of driving Americans,
public charging won't be necessary.
Electric Vehicles' Many Beneits
Of course, the main benefit of driving a plug-in EV is that it's
good for your wallet. At today's average annual residential electric
rate, charging your EV would be comparable to paying less
than $1 per gallon for gasoline. In addition to the relatively
lower cost to " fill it up, " you will qualify for a $7,500 federal tax
80
credit. State tax credits, as well as other financial incentives, are
also available. Furthermore, many utilities are offering special
incentives to help pay for a home charger, as well as special rates
to encourage even cheaper, overnight charging at home.
Widespread adoption of EVs will help the economy too. Estimates
are that they would create many domestic jobs, lower our
trade deficit by $127 billion by 2030, boost household incomes
and overall GDP, reduce the federal budget deficit, and make our
It will be several years before
plug-in electric vehicles become
widespread enough to put a serious
strain on the grid.
economy more resilient to oil price shocks. And investments in
creating EV-related jobs in the U.S. will help to stop those jobs
from moving overseas.
The widespread adoption of EVs also will help our country
reduce its dependence on foreign oil. Less than 1% of electricity
is now generated from oil. Electrifying all the cars on the
road would reduce oil imports by over 3 million barrels per day
by 2030. And doing so could free up 12% to 15% of our annual
defense budget spent on securing imported oil trade routes.
The new plug-in EVs will even help the environment because
they use significantly less gasoline than both current hybrids
and standard vehicles-and, therefore, release fewer emissions.
If EVs really take off, will the grid be able to handle all those
cars recharging their batteries at the same time? Yes! Studies
have shown that even in neighborhoods with older or smallercapacity
transformers, three to four EVs would have to be added
to a single transformer to become a problem. Transformer maintenance
and grid management are part of what electric utilities
do; the coming of mass market electric cars is no different than
previous waves of new electric products such as air conditioners
or large-screen TVs.
And the grid has surplus capacity built into it, particularly at
night, when electricity demand is at its lowest. Also, it will be
several years before plug-in EVs become widespread enough to
put a serious strain on the grid.
Lastly, plug-in EVs are fun to drive. The electric motor provides
instant torque with no hesitation. With the support of the
country's electric power industry in building the necessary infrastructure
to power them, they're on the fast track to successfully
deliver on their promise. ■
-Rick Tempchin (rtempchin@eei.org) is executive director of
Retail Energy Services at the Edison Electric Institute.
www.powermag.com
POWER | April 2011
http://www.theevproject.com http://www.powermag.com
POWER April 2011

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