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CPUC Adopts Temporary Charging Rates for SDG&E Commercial Customers

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In our continued efforts to help California meet its clean air goals and accelerate electric vehicle (EV) adoption, today we adopted interim rates to service EV charging for commercial and industrial customers of San Diego Gas & Electric (SDG&E).

This decision creates a new interim rate with significantly lower demand charges for medium and heavy-duty electric vehicles in SDG&E’s service territory. It is designed to address a known financial barrier to investment in EVs as we work on developing a long-term rate strategy for this customer segment in SDG&E’s service territory.

The transportation sector represents the largest share (41%) of greenhouse gas emissions in California. Although medium and heavy-duty vehicles, which include transit and school buses, delivery trucks, etc., represent only 10% of all vehicles, they are responsible for a quarter of transportation sector emissions.

A significant barrier to EV adoption for the commercial sector is that demand charges, which is a monthly charge based on a customer’s highest electricity demand during the month, tend to be the largest portion of a customer’s bill. The existing SDG&E rate structure offers only general rates with high demand charges for commercial and industrial customers who charge EVs. Today’s decision will help address this barrier to EV adoption through better rate design so that electricity is a cheaper option than conventional fuels. The Commission previously approved rates designed to incent the adoption of EVs by commercial customers in the service territories of Southern California Edison and Pacific Gas & Electric.

In August 2019, the CPUC authorized over $100 million for SDG&E’s medium and heavy-duty program with 30% dedicated to infrastructure in disadvantaged communities. This program is designed to support deployment of at least 3,000 medium and heavy-duty vehicles at a minimum of 300 sites over the next five years. Today’s decision is an important step forward in ensuring the success of this program.

The proposal voted on is available here.

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