DTE & Consumers’ Proposed Electric Car Infrastructure Expansions

The National Renewable Energy Laboratory estimates that 15-million electric vehicles will be on US roads by 2030. As their use expands from local commuting to inter-city trips, major improvements in charging infrastructure will be essential.

In the state of Michigan, there are currently 15,000 electric vehicles on the road supported by 483 public charging locations, only 16 of which are DC fast chargers capable of providing 150 or miles of driving range in an hour or less. Add to that 16 Superchargers currently serving Tesla owners with 8 more scheduled to open in the near future.

Public utilities expect to shoulder most of the responsibility for infrastructure improvements. But before they can count on their customers to foot the bills, they must earn approval for utility rate increases from local Public Service Commissions.  Towards that end, the two utilities serving south eastern Michigan—Consumers Energy based in Jackson and Detroit’s DTE Energy—recently applied for rate increases.

Consumers’ Energy Proposal

In May, Consumers asked for a $58-million (1.4%) increase to expand infrastructure and take care of its forestry needs over the next three years. The goal is to add 24 DC fast-charge connections and another 200 or so Level 2 public chargers. But instead of Consumers owning and operating all of these charge points, incentives in the form of electricity cost rebates are planned. Electric vehicle owners would not only qualify for a $500 rebate by installing home charging equipment, they’d also enjoy reduced utility rates for charging their vehicles during night-time hours. Private enterprises in turn would receive $5000 to build and operate each Level 2 charger and $70,000 per DC fast-charge installation. The Michigan Public Service Commission began hearings in June to consider Consumers’ proposals.

DTE’s Proposal

DTE’s early-July pitch to the Commission is grander in total by a factor of five ($328-million) and includes $13-million—double the amount proposed by Consumers—to fund the Midwest’s largest expansion in electric vehicle charging stations. If implemented, DTE’s three-year Charging Forward pilot program would support 32 new DC fast charge points, 1000 publically accessible Level 2 locations, 2600 ‘smart’ chargers for home installation, and more customer education. To qualify for reduced electric rates, DTE customers would have to enroll in a program that includes smart charging during evening hours when there is excess grid capacity.

If approved, the DTE plan would take effect next May and raise residential electric rates by about 9-percent. That’s a small price to pay for the benefits to electric car owners and manufacturers. Charles Griffith, director of the climate and energy program at Ann Arbor’s Ecology Center agrees. He recently told Crain’s Detroit Business, “DTE Energy’s Charging Forward proposal will go a long way toward filling the electric vehicle charging infrastructure gaps that create barriers  to EV adoption.”