According to a new report released on April 14, 2023, by the Environmental Defense Fund (EDF), an international nonprofit focused on solutions to environmental problems, utilities covering the cost of infrastructure upgrades needed for fleet charging can increase their revenue without raising electricity rates.[1] Large-scale electrification of medium- and heavy-duty vehicles is essential for the U.S. to meet its climate goals. However, the cost of upgrading the electrical infrastructure required to make a commercial site ready for EV charging, called “make-ready,” can account for up to 30% of the total cost of charging for fleets. Most U.S. utilities and regulators have been reluctant to finance these grid upgrades due to fears that it will lead to increasing everyone's electricity rates to pay for them.

The analysis, conducted for EDF by Synapse Energy Economics, uses two New York State utilities—Con Edison and National Grid—as case studies. It found that if utilities cover the make-ready cost for both private and municipal fleets, the investment will pay off for utilities and have a positive to neutral impact on ratepayers in both utility service areas. The study finds that with managed charging— the practice of aligning EV charging during times when clean, affordable electricity is most abundant — Con Edison’s make-ready program generates $1.1 billion in net revenue between 2023-2045, while National Grid’s program generates $141 million in the same time period. Managed charging is the practice of aligning EV charging during times when clean, affordable electricity is most abundant, reducing stress on the larger grid and mitigating pollution from power plants. Even without managed charging, the analysis found that investing in make-ready programs still had a positive to neutral impact. In addition, EDF contends that the results can be applied to states across the country due to the nature of the utilities studied; the two New York utilities are at opposite ends of the spectrum regarding grid costs, electricity demand profiles, and region.

[1] https://www.edf.org/media/worth-investment-report-finds-utilities-fleet-owners-consumers-benefit-when-utilities-cover