VA electric vehicle buyers to have option of lower electric rates

VA electric vehicle buyers to have option of lower electric rates

Dominion Virginia Power is giving electric-vehicle owners a rate break if they charge their cars overnight. Under a program announced last week, customers can choose between two options to charge their vehicles:

Option 1 – Dominion will install a second meter in their home that measures energy used only for recharging the vehicle. The cost for the meter is $2.90 a month.

Option 2 – Lower overnight prices for all household electricity use, including the recharging of vehicles. Dominion Virginia Power will replace the customer’s meter with one that records energy use in 30-minute intervals, allowing the company to apply pricing rates at specific time periods.

Under the first option, the utility estimates that an overnight electric vehicle charge good for about 40 miles would cost 54 cents. Under the second option the costs are estimated at 51 cents in the summer and 61 cents in the winter. By contrast, the usual cost to charge an electric vehicle using standard residential rates is about $1.10.

The program is designed to offset the cost of owning an electric vehicle and test whether people can be encouraged to charge their vehicles during off-peak hours, which is typically overnight, when usage is down.

The Dominion program ends Nov. 30, 2014. Each option is open to 750 people.

Dominion spokesman Tom Kazas said 17 people had already signed up by late afternoon Monday of this week.

The major challenge, of course, for electric-vehicle manufacturers and dealers selling EVs is where the vehicles will be charged. The long-term goal of the federal government is to build a network of charging stations in parking garages, retail centers and other public areas so customers can charge as they go. The U.S. Department of Energy is currently funding a program to put such EV charging grids in place, and last month, the Richmond Electric Vehicle Initiative received a $429,051 grant to help develop a local network of charging stations for electric vehicles.

The Richmond area is a key market for manufacturers who are introducing electric vehicles, including the Nissan Leaf, the Ford Focus, the Chevrolet Volt and the Toyota Prius.