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US Utilities Have Finally Realized Electric Cars May Save Them (qz.com)

Pity the utility company. For decades, electricity demand just went up and up, as surely as the sun rose in the east. Power companies could plan ahead with confidence. No longer. From a report: This year, the Tennessee Valley Authority scrapped its 20-year projections through 2035, since it was clear they had drastically underestimated the extent to which renewable energy would depress demand for electricity from the grid. But there is a bright spot for utilities: electric vehicles (EV), which make up 1% of the US car market.

For years, that market barely registered on utilities' radar. As EVs find growing success, utilities are building charging infrastructure and arranging generous rebates. Pacific Gas and Electric, Southern California Edison, San Diego Gas & Electric, and New Jersey's PSE&G have partnered with carmakers to offer thousands of dollars in rebates for BMW, Nissan, and other brands. Now utilities are asking Congress for help as they attempt to keep tapping into EV demand. A collection of 36 of the nation's largest utilities wrote a letter (PDF) to congressional leadership on March 13, asking for a lift on the cap on EV tax credits. The signatories' include California's Pacific Gas & Electric, New York's Consolidated Edison, the southeast's Duke Energy Company, and others covering almost every state. At the moment, Americans who buy electric vehicles receive a $7,500 federal tax credit (along with some state incentives) for each vehicle.

5 of 297 comments (clear)

  1. End of Petroleum Taxes by Oswald+McWeany · · Score: 5, Insightful

    Most of us around the world pay taxes on every liter or gallon of petroleum our cars consume. In some countries it's a pretty high tax. If electric vehicles start making up a larger and larger % of vehicles on the road will there come an end where to be fair you need to drop the tax on fuel and instead tax electricity- take a certain % of your electricity usage and put it towards maintaining roads and public transportation?

    We all benefit from roads and bridges, even those that don't drive.

    Obviously we're still at the stage where most governments are still trying to encourage more electric vehicles, but eventually if electric takes off like planned, it's going to become unfair to place all the burden of taxes to maintain roads on drivers of ICE vehicles. Especially since it will most likely be the poor and impoverished who will be the last to adapt to the new electric-vehicle age.

    --
    "That's the way to do it" - Punch
    1. Re:End of Petroleum Taxes by hipp5 · · Score: 5, Informative

      While fuel is taxed, it doesn't come close to covering all road costs (at least in the jurisdictions where I know the details). Most road construction and maintenance funds come out of general funds raised by property and income taxes. So while the EV driver (an the cyclist) do pay less in taxes towards the road, it's certainly not accurate to say they don't share at least some of the burden.

    2. Re:End of Petroleum Taxes by Anonymous Coward · · Score: 5, Insightful

      While fuel is taxed, it doesn't come close to covering all road costs (at least in the jurisdictions where I know the details). Most road construction and maintenance funds come out of general funds raised by property and income taxes. So while the EV driver (an the cyclist) do pay less in taxes towards the road, it's certainly not accurate to say they don't share at least some of the burden.

      Given that an 18-wheeler requires about 1,500 times the road maintenance one car does, the amount of maintenance required to maintain a road for a year if it were used only by cyclists could probably be paid for by the sales tax you paid on your donut this morning.

      Because from eyeballing the charts in that document, it looks like the damage a vehicle does to a road is proportional to about the third or fourth power of the weight of the vehicle - which means the damage a cyclist does to a road is literally negligible.

      Cyclists are paying a lot MORE than their share of road maintenance.

      Road damage is pretty much entirely caused by trucks, unless there are lots and lots of cars and almost no trucks.

    3. Re:End of Petroleum Taxes by Rei · · Score: 5, Insightful

      Almost makes me wonder if the taxes should be on tires, relative to their expected lifespan and predicted road damage. Then you're taxing the object that directly does the damage. If someone does something that will increase the road damage - driving aggressively, carrying large loads, etc - they'll correspondingly burn out their tires faster. Kind of silly that a person can drive around on studded tires (which are very popular here) but pay the same road taxes per unit distance as someone driving around in the same vehicle on soft tires.

      --
      Is your job to sit under bridges and jump out at unsuspecting travellers?
  2. Re:But I Don't WANT One. by Rei · · Score: 4, Funny

    That's why I've always used gasoline-powered phones (the vibration on them isn't that loud, manufacturers have gotten good at muffling it). I just drive down to the store at regular intervals and wait outside while they fill it up, it doesn't take long. You'd think it'd be annoying having to go out of your way to fill it up your phone, but you get used to it. People say, "Oh, but you can't charge in the comfort of your home, like you can with a battery-powered phone", but I can't see why that's so appealing.

    --
    Is your job to sit under bridges and jump out at unsuspecting travellers?