3 Ways Utilities Voluntarily Offer to Reduce EV Demand Charges

Where: Minnesota

What are the 3 ways utilities are offering to reduce EV rates?

• Xcel Energy
  • Decades-old pricing system limits demand charges with sporadic loads, including from DC fast chargers
• Minnesota Power
  • Pilot program that prohibits demand charges from exceeding 30% of a DC fast-charging company’s bill 
• Otter Tail Power
  • Pilot rate plan reduces demand charges + promotes third-party ownership of DC fast chargers

Why is this important for EV innovation?

• Demand charges wipe out any profits a fast-charger developer earns

Energy News Network | Minnesota utilities offer to lessen demand charges on EV fast chargers