HomeMy WebLinkAbout20210909Exhibit No. 2.pdf
Transportation
Electrification Plan
2020
Avista Corporation is an energy company involved in the
production, transmission and distribution of energy as
well as other energy-related businesses. Its largest
subsidiary, Avista Utilities, serves more than 600,000
electric and natural gas customers across 30,000 square
miles in eastern Washington, northern Idaho and parts of
southern and eastern Oregon.
Avista’s legacy begins with the renewable energy we’ve
generated since our founding in 1889, and grows with our
mission to improve customers’ lives through innovative
energy solutions.
Avista – Better Energy for Life!
Front Cover – Avista’s first DC fast charging site installation in partnership with the Town of Rosalia, Washington
About Avista
Huntington Park, Spokane, Washington
March 10, 2020
Draft Submitted for Stakeholder Review and Comment July 1, 2020
Revision Filed with the Washington Utilities and Transportation Commission for Acknowledgment Contact
electrictransportation@avistacorp.com
Acknowledgments
The following organizations are recognized and
appreciated for their support of electric transporta-
tion and the Transportation Electrification Plan
Alliance for Transportation Electrification
Chargeway
Charlie Allcock Consulting, LLC
ChooseEV
City of Colville
City of Liberty Lake
City of Palouse
City of Pullman
City of Spokane
Climate Solutions
Colvico, Inc.
Edison Electric Institute (EEI)
Electric Power Research Institute (EPRI)
Energy + Environmental Economics (E3)
EV Connect
Forth
GEM Electric NW, Inc.
Gonzaga University
Greenlots
Kendall Yards
NW Energy Coalition
Pacific NW Utility Transportation
Electrification Collaborative
Port of Clarkston
Plug-in America
Pullman Transit
Spokane Regional Health District
Spokane Regional Transportation Council
Spokane Transit Authority
Town of Garfield
Town of Rosalia
Transitions for Women
Washington State University
Washington State Transportation
Electrification Stakeholder Group
Washington Trust Bank
Wendle Nissan
Whitworth University
Our Vision – Better Energy for Life! ...................................................................... 1 Executive Summary ............................................................................................... 2 Background .......................................................................................................... 16 Technology and Markets ...................................................................................... 20 Environmental, Economic and Grid Impacts........................................................ 31 Costs and Benefits ............................................................................................... 39 Analysis and Reporting ........................................................................................ 44 Programs and Activities ....................................................................................... 45
EVSE Installations and Maintenance .......................................................... 45
Education and Outreach ............................................................................. 55
Community and Low-Income Support ........................................................ 58
Commercial and Public Fleets .................................................................... 61
Planning, Load Management and Grid Integration ..................................... 65
Technology and Market Awareness ................................................................ 67
Rate Design................................................................................................. 69
Utility Fleet Electrification, Facilities and Employee Engagement .............. 72
References ........................................................................................................ 74
Appendix A: Glossary of Terms ..................................................................................... 76
Appendix B: Light-Duty EV Adoption Forecasts ................................................ 81
Appendix C: Stakeholder Engagement, Comments and Support ..................... 84
Table of
Contents
Avista Corp. 1
Our vision:
better energy for life!
Imagine an electrifying future . . .
By the year 2045, renewable and clean energy sources
power the electric grid and a vibrant modern economy,
including the transportation sector. Whether moving
people or goods on the road, off the road, by rail, in the
air, or over water, clean electricity makes it happen. The
majority of transportation is electrified and the use of
fossil fuels is no longer dominant. Customers have new
and exciting transportation choices. Major economic
benefits of over $1 billion per year in fuel and mainte-
nance cost savings are realized in the local economies
served by Avista. This is accomplished while eliminating
more than 80% of harmful air pollution and greenhouse
gas emissions from transportation—formerly the largest
source of emissions in the region.
In this exciting future, transportation accounts for over
20% of utility electric load and revenue, helping to pay for
fixed grid costs and keeping rates low for all customers. A
combination of cost-effective load management and
transfer technologies, energy storage, and price signals
act to optimally integrate flexible transportation loads with
the grid—including a wide array of new distributed energy
resources. This reduces peak loads on the system,
provides for better grid resiliency, and maximizes the use
of renewable energy sources.
Autonomous electric transportation has also revolution-
ized the way we move people and goods, dramatically
increasing vehicle and equipment utilization, driving down
transportation costs, freeing up people’s time, and saving
thousands of human lives and serious injuries every year.
The vehicles themselves are integral parts of a new age
in communications and connection, opening the door to a
wide variety of new products and services that improve
people’s lives.
In just 25 years, an amazing transformation has
occurred—the transportation sector has converged with
the energy and information technology sectors—
fundamentally changing the way we live our lives and
making the world a better place. Avista has played a key
role in this transformation, working over several decades
with industry partners, policymakers and regulators,
community leaders, and customers to innovate and
create a better energy future for all.
Avista’s Noxon Rapids Hydroelectric Generation Plant
– 562 MW of Clean Hydropower –
EVs Fueling Up with Clean Energy – The Future is Electric !
Avista Corp. 2
Executive
Summary
Guided by our vision of a better energy future, Avista’s
Transportation Electrification Plan (TEP) details strategy
and planned activities in the service areas of Washington
and Idaho, with an emphasis on near-term actions from
2021 through 2025. Avista’s strategic approach is
informed by industry and customer research; the current
landscape of policy, technology and market forces;
projected impacts on the economy, the environment and
the grid; and the valuable experience gained through the
Electric Vehicle Supply Equipment (EVSE) pilot launched
in 2016.
Today, driving a
passenger EV
fueled by Avista’s
electricity results in
zero tailpipe
emissions, causes
total CO2 emissions
reductions of 80%,
costs less than an
equivalent $1 per
gallon of gasoline to
fuel, and saves
$300 per year in
maintenance
expenses.1
If all light-duty
vehicles were electric,
this would result in regional savings of over $1 billion per
year—creating a powerful ripple effect for the economy—
and avoiding annual emissions of 2.5 million tons of CO2.
Other electrified transportation beyond light-duty
passenger vehicles would result in even greater reduced
emissions and operational savings.
In addition, electric transportation provides grid benefits
for all utility customers, in the form of net revenue that
helps pay for fixed system costs. In 2025, over 6,800 EVs
in Washington and Idaho service territories are expected
to provide Avista with gross revenue of $2.1 million from
EV charging. Subtracting an estimated $0.5 million in
marginal utility costs to generate and deliver this energy
results in $1.6 million in net revenue—savings which may
be passed along to all utility customers in the form of
decreased rate pressure. This is just the beginning. With
over one million registered vehicles in the region,
consider the enormous customer savings and grid
benefits that a high percentage of EVs would provide,
especially when charging is optimally done during off-
peak times of the day and night.
1 Estimates assume Avista’s current mix of electric generation sources,
3.3 miles/kWh and $0.11/kWh for EVs, and $3/gallon, 26 mpg for
conventional vehicles.
Figure 1: EVs using Avista’s elec-tricity reduce emissions by 80%
Avista Corp. 3
EV charging loads are very flexible, as 80% or more of
EV charging may occur while the vehicle is parked at
work during the day and at home overnight. In the future,
the greatest benefits may be realized by capitalizing on
this flexibility, charging EVs when renewable energy
resources such as solar and wind are abundant. For
example, EVs could utilize more solar power on the
system during the day and in the summer, as well as
more wind power when it is typically more available at
night and during the winter. In this way, EVs could help
maximize the integration and use of an increasing
amount of renewable resources on the grid.
In other words, electric transportation can benefit all
customers and society as a whole—not just those using
EVs and other forms of electrified transportation
equipment—by using a cheaper and cleaner fuel, more
efficiently utilizing grid infrastructure, and integrating
renewable power resources that energize a healthy and
more sustainable economy.
Policy, Technology and
Market Landscape
Given these realities, policy support for electric
transportation is strong and expected to grow with
increasing climate concerns caused by greenhouse gas
emissions, the recognition that transportation accounts
for nearly half of all emissions in the Pacific Northwest,
and that major economic benefits may be realized over
the long term as the transportation sector is electrified.
While adoption forecasts are subject to uncertainty, it is
clear that a major transition from fossil fuels to electrically
powered transportation is underway on a broad, global
scale. This is currently led by China, followed by Europe
as shown in the charts below.
Figure 2: Global EV adoption forecasts (Bloomberg New Energy Finance, EV Outlook, 2019)
Avista Corp. 4
Technical advances and industry investments of over
$362 billion annually2 indicate that EV performance,
features and costs will continue to improve, perhaps
reaching purchase cost parity with conventional vehicles
by 2025 without subsidies.3
In the U.S., EV sales have grown considerably for many
years but contracted by 9% in 2019, compared to an
overall decline in light-duty vehicle sales of 2%. Most
recently, the COVID-19 pandemic has dramatically
reduced overall auto sales in 2020 and may continue to
reduce EV demand well into 2021. While this presents
considerable uncertainty in the near term, sales are likely
to rebound as new EVs are introduced in the 2021—2022
timeframe and the used market provides more affordable
EVs to a growing number of people. Tesla continues to
dominate new EV sales in the U.S., and its announce-
ment of the Model Y production ahead of schedule in
2020 is likely to further boost EV sales.
Annual EV registrations in Avista’s eastern Washington
service area grew by 23% in 2015, improving each year
since then and reaching 50% in 2019, surpassing the
state average, and correlating with support from the
EVSE Pilot. However, EVs represent less than 2% of
annual fleet turnover in the region and are still in the very
early stages of market growth.
Product and investment commitments announced by
major automakers including Ford, GM and VW, as well as
the rise of Tesla and startups such as Rivian, indicate
that we can expect a growing number of electrified truck,
SUV and crossover model introductions over the next
several years. Trucks and SUVs accounted for a record
69% of light-duty U.S. sales in 2019, and these vehicle
types dominate sales in Avista’s service territory; they are
key to making serious inroads into the mass market.
Even with major commitments and deliveries made good
by the automotive industry, it will most likely take several
years to significantly raise vehicle availability and
inventory levels at price points needed to achieve
substantial momentum and market transformation.
Furthermore, Avista serves a customer base with
relatively lower personal incomes and more rural
geographies with smaller population densities. This may
continue to dampen EV adoption in the Company’s
service territories.
In consideration of all these factors, we expect light-duty
EV growth in our region to continue, with steady but
gradual improvement for three to four years, followed by
relatively strong growth starting in the 2023–2024
timeframe. This presents a limited window of just a few
years to solidify a foundation of supporting infrastructure
and programs which will need to be in place to enable
accelerated growth starting as early as 2023.
Beyond light-duty passenger EVs used for household and
commercial fleets, the first deployments of mass transit
buses powered by electric batteries are scheduled in
2021 by two transit agencies served by Avista. An
excellent opportunity also exists today to support the local
adoption of electrified lift truck (forklift) equipment,
resulting in swift paybacks on investment in terms of
emissions reductions, customer transportation savings
and beneficial utility revenue.
2 Atlas EV Hub, see www.atlasevhub.com
3 “When Will Electric Vehicles Be Cheaper than Conventional Vehicles?”
Bloomberg New Energy Finance (2018).
Population
in Electric
Service Area
Registered
Light-Duty
Vehicle
Fleet
Annual Fleet
Growth (2%)
Annual Fleet
Turnover
(7%)
Total EV Regis-
trations
in Service Area
% of Fleet
on Road
Estimated
New EV Regis-
trations (2020)
% of Fleet
Turnover/
Sales
Washington 676,746 512,297 13,535 35,861 1,331 0.3% 481 1.3%
Idaho 321,415 243,311 6,428 17,032 409 0.2% 143 0.8%
Total 998,161 755,608 19,963 52,893 1,740 0.2% 624 1.2%
Table 1: Overall light-duty fleet and EVs in Avista's electric service area (2019)4
Avista Corp. 5
Other commercial opportunities are
expected to become more viable
over time, such as commercial
delivery vehicles, school buses,
airport ground support equipment,
truck stop and refrigerated freight
electrification, and electrified
agricultural equipment. Over the
longer term, advanced technologies
such as vehicles connected to
homes, buildings and the grid (V2X);
transactive energy systems; rail,
marine and aircraft electrification;
“last mile” or micro-mobility
innovations; hydrogen powered EVs
and electrified autonomous vehicles
(AVs) could further and dramatically
alter both utility grid management
and the transportation sector.
Avista’s Electric Vehicle
Supply Equipment
(EVSE) Pilot
At a minimum, the electric utility has
an obligation to prepare for the
future of electric transportation,
ensuring good stewardship of grid
assets, public service and safety
levels. It also has a historic
opportunity to serve its customers in
new and better ways for the long
term, realizing major economic and
environmental benefits. In this
context, the Company carried out its
Electric Vehicle Supply Equipment
(EVSE) pilot from 2016 through
2019, seeking to understand costs,
benefits and impacts of EVs; explore
customer needs; test utility program
models; and begin supporting
beneficial EV adoption. This direct
experience along with ongoing
research and customer feedback
has positioned the Company to
propose informed strategies and
programs as outlined in this Plan.
Among many things, the EVSE pilot
demonstrated cost-effective utility
programs that were well received by
customers and correlated with
significantly increased adoption
rates. It also highlighted the value of
workplace charging, a need for more
public charging infrastructure, and
industry improvements in networked
charger costs and reliability.
Modeling and analysis showed that
load growth from EVs provides net
benefits to all grid customers, and
that new electric loads from
transportation should be
manageable over the next decade. It
also showed the importance of
developing cost-effective load
management capabilities over the
longer term, as this can provide
additional net benefits and will
become increasingly important at
higher adoption levels beyond 2030.
Given that 70% or more of EV
charging is expected to occur at
residential locations, one key to
maximizing benefits at scale is to
shift this peak load as much as
possible to off-peak times of the day
and night—when energy is more
abundant and less expensive to
acquire. Eventually at high adoption
levels above 30%, coincidence
factors could also play a role in
driving up distribution costs
associated with local transformers,
feeders, and perhaps even
substations unless this peak load is
shifted to off-peak.
The following chart shows a detailed
load profile from residential charging
data collected over the course of the
pilot. Demonstrating charging for the
average EV on the system, it
illustrates how peak loads are much
Public charger in partnership with the City of Liberty Lake (2017)
Avista Corp. 6
higher on weekdays and typically occur between 5 pm
and 6 pm throughout the week, coinciding with peak
loads on the grid year-round.
Utility Role, Strategy and Objectives
Strategically, Avista will adopt a flexible and adaptive
approach, align with policy guidance,5 partner with
industry experts and other key stakeholders, facilitate
healthy market competition, improvements, interoperable
industry standards, and enable direct benefits for
disadvantaged communities and customers. Efforts will
focus on supporting cost-effective new customer choices
in a variety of transportation market segments over the
next several decades.
This begins with appropriate utility support that enables
and accelerates sustained entry into the mass market for
light-duty EVs by 2030 or earlier, depending on the
strength of products and other factors enabling mass
adoption. While staying abreast of changing technologies
and market conditions, utility programs will focus on
overcoming critical barriers of adequate charging
infrastructure and customer awareness, which Avista is
uniquely positioned to address. In addition, these
programs are intended to establish a foundation for load
management and maximum off-peak charging at scale,
which optimally integrates with the grid over the long
term.
Activities and funding levels are flexibly designed in the
TEP to match technology and market conditions,
transitioning from moderate to strong levels of utility
support in earlier phases, to more regular and enabling
programs as different market segments sustainably enter
the mass market and the industry matures and scales in
later phases.
5 Policy and Interpretive Statement Concerning Commission Regulation
of Electric Vehicle Charging Services.” Washington Utilities and
Transportation Commission, Docket UE-160799 (2017).
Figure 3: Average daily load profile for residential charging (EVSE Pilot data, 2016—2019)
Avista Corp. 7
Guiding Principles
Flexible, adaptive approach to
changing market conditions and
different market segments
Early utility role supports healthy
market growth and grid integra-
tion, ensuring net benefits for all
utility customers over the long
term
Plan and programs align with
legislative and regulatory policy
Program focus areas: EVSE
infrastructure, customer educa-
tion and outreach, community
and low-income support, fleet
support, and grid integration/
load management
Utility programs support healthy
market competition, innovation
and interoperable industry
standards
Customer-centric, high-
satisfaction program results;
provide objective information
and choices that enable informed
customer decisions
Cost-effective, integrated
management across all pro-
grams and activities
Regular updates to load profiles
and forecasts for utility Systems
Planning and the Integrated
Resource Plan (IRP)
“Walk the talk” with effective
utility fleet electrification, facility
EVSE and employee engagement
programs
Partner and collaborate with key
stakeholders
Avista Corp. 8
Much is dependent on the vehicles provided by original
equipment manufacturers (OEMs) in terms of price,
functionality, variety and availability, of which the utility
has little influence. Given this reality, Avista’s programs
and activity levels will scale up from baseline support
levels starting in 2021 to stronger support coinciding with
improved market conditions expected in the 2023-2024
timeframe when more competitive products are widely
available, including light-duty trucks and SUVs. In the
near term, Avista will consider ways to effectively raise
awareness levels, improve the availability of EVs in the
area, and work with stakeholders to build out the EVSE
infrastructure that will be needed by 2025.
In other words, a solid foundation must be set in place
starting today, in order to enable strong growth in the
future.
Eventually, as EVs begin to make sustained entry in the
mass market (at roughly 15% of total vehicle sales each
year), certain education and outreach programs may no
longer be necessary. Beyond this point, utility
infrastructure and load management programs could play
an ongoing, enabling function that is fully integrated with
day-to-day utility operations. To illustrate, three plausible
adoption scenarios for light-duty EVs are shown in the
chart below, corresponding to OEM product levels
matched with appropriate utility support programs. Note
the anticipated points of sustained entry in the mass
market by 2030 for the“Baseline” adoption scenario, and
in 2027 for the “High” adoption scenario.
Figure 4: Light duty EV adoption forecasts for registered light-duty vehicles in Avista’s service territory; sources include Washington and Idaho regis-
tration data; Bloomberg New Energy Finance Electric Vehicle Outlook, 2019; “Economic & Grid Impacts of Electric Vehicle Adoption in Washington &
Oregon.” Energy and Environmental Economics (2017).
Avista Corp. 9
Strategic Objectives
and Goals
1. Achieve sustained entry in the
mass market for light-duty EVs
> 15% of annual vehicle sales by 2030
or earlier
Install EVSE needed by 2025 for rapid
market growth, owned and maintained
by Avista and third parties
Maintain EVSE uptime > 99%
By 2025, raise positive awareness of
EVs by 500%
2. Support electrification of
commercial and public fleets
Implement a commercial EV time-of-
use (TOU) rate starting in 2021
Invest in “make-ready” utility upgrades
Deploy and expand fleet support
programs, starting with lift trucks and
light-duty passenger vehicles in 2021
3. Meet aspirational goal of 30%
overall spending on programs
benefiting disadvantaged
communities and low-income
customers
4. By 2025, achieve net benefits
from load management and EV
TOU rates with > 50% reduction
of EV peak load
5. Monitor new technologies and
markets; implement pilot
projects starting with mass
transit and school buses in
2022-2023
6. Expand utility fleet electrification
with 5% or more of annual fleet
budgets, install EVSE at Avista
facilities and by 2025 raise
employee EV adoption 300%
Avista Corp. 10
A flexible, adaptive utility approach is replicated in other
emerging market segments, such as initiating a fleet
support program for lift trucks in the near term, followed
by anticipated opportunities that arise with freight delivery
vehicles, school buses and other applications in ensuing
years. In the early stages of each market segment, pilot
programs may be explored. For example, the value of
greater community resiliency in the event of severe
weather events could be tested in a pilot project, using
schools with on-site renewable power generation and
electrified buses providing emergency energy storage.
The utility must also monitor technology and market
developments, and over the longer term investigate and
support emerging opportunities including electric micro-
mobility innovations, vehicle-to-home or vehicle-to-
building (V2H/V2B) as backup power, vehicle-to-grid
(V2G) bi-directional power transfer, open software
platforms enabling broad energy transactions, rail and
aircraft applications, marine transport, hydrogen-powered
EVs, and electrified autonomous vehicles.
In summary, the Plan’s strategic objectives and goals
follow from the Company’s aspiring vision, direct
experience through the EVSE pilot, and a realistic
assessment of technology and market trajectories.
Programs and activities planned for the 2021–2025
timeframe are briefly described below, designed to meet
these strategic objectives and set the foundation for
beneficial electric transportation growth for the long term.
More details are provided in respective sections of this
Plan, supplemented by information in Appendices.
EVSE Infrastructure and Maintenance
The utility is in a unique position to install EVSE
infrastructure that will be needed by a growing EV
market, in a way that is most cost effective for the public
interest and supports off-peak charging over the long
term. Charging infrastructure for public DC fast charging
(DCFC), workplace charging and fleets is a top priority,
followed by public AC Level 2. Workplace, fleet, MUD and
residential charging programs are essential to support
early EV adoption and may be leveraged to enable load
management and reduced on-peak loads from EVs.
A portfolio of proposed programs support both Avista and
third-party EVSE ownership, off-peak charging and
customer choice through proven cost-effective methods,
“make-ready” options, load management and a pilot EV
TOU rate for commercial customers. Ideally, third-party
EVSE ownership makes up 50% or more of all EVSE in
the marketplace through 2025. The coordinated buildout
of EVSE is also intended to foster healthy market
competition and growth among EVSE and electric vehicle
service providers (EVSPs).
Based on anticipated market needs, a coordinated public
DCFC buildout of 60 DCFC sites in the region by 2025
will be prioritized through a deliberate process involving
key stakeholders. This includes DCFC sites within 40
miles along all major travel corridors, as well as high-
traffic and key destination locations within more
populated areas. Avista will endeavor to install, own and
maintain up to 50% of the anticipated market need, or 30
DCFC sites, by 2025. A “make-ready” utility extension
policy and pilot EV TOU rate schedule will be applied at
DCFC sites to encourage off-peak charging and third-
party ownership to the greatest extent possible, ideally
meeting or exceeding 30 DCFC sites by 2025.
Public AC Level 2 sites will be built out per stakeholder
review and selection at up to 10 sites per year in the
region.6 AC Level 2 EVSE for workplace, fleet, MUD and
residential use will be completed on a first-come, first-
serve basis subject to eligibility requirements and
program limitations. Avista will own and maintain EVSE
6 Additional public AC Level 2 sites may be installed under
Community and Low-Income programs.
DCFC site in partnership with Gonzaga University, in the Spokane
U-District (2019)
Avista Corp. 11
assets, covering direct installation costs and 50% of
premises wiring installation costs up to $2,000 per port for
commercial installations and $1,000 for residential
installations. In the future, equipment lease and/or rebate
programs may also be considered for customer-owned
EVSE, and coverage of premises wiring costs may be
reduced as the market improves and effective load
management programs are well established. Customer
site agreements will include enrollment in load
management programs and future TOU rates, so that off-
peak charging and net benefits for all customers may be
maximized over the long term.
EVSE maintenance and uptime at 99% or greater is an
important priority—a high performance level that Avista
will work to achieve and maintain in collaboration with
industry partners.
Education and Outreach
Raising awareness through effective Education and
Outreach activities is also of great importance to
accelerate market adoption. Avista will engage with
stakeholders in a number of activities, by 2025 raising
customers’ positive EV awareness by 500%. This
includes a $250 dealer referral, EV education and
awareness campaigns, and support for peer-to-peer
interest groups and transportation network companies
(TNCs). The Company will also maintain online
information and tools, customer call center assistance,
and support for local ride-and-drive events.
In addition, Avista will consider new and innovative ways
to raise positive awareness and EV availability, such as
with informational kiosks, training and certification
programs at auto dealerships, and partnering to establish
an innovative EV Experience Center delivering effective
information and education, charging availability, and EV
rental and purchase services.
Community and Low-Income Support
Avista is committed to help provide benefits from electric
transportation to disadvantaged communities and low-
income customers, in collaboration with other service
organizations and community leaders. An aspirational
goal of up to 30% of overall electric transportation
funding will be applied to this program category, subject
to practical limitations of the market and viable, cost-
effective technologies.7 The EVSE pilot demonstrated a
successful model that will be expanded upon, providing
EV and EVSE assistance for community organizations
that serve the disadvantaged, through a collaborative
process and competitive proposal selections. In addition,
Avista will provide additional EVSE installation
assistance for low-income rural towns, multi-unit
dwellings, and residential customers receiving low-
income bill assistance.
New pilot programs may be developed with public transit
agencies and TNC platforms, as well as partnerships
with organizations such as Envoy to pilot ride-sharing
and car-sharing services for disadvantaged groups.
Commercial and Public Fleets
Opportunities to support electric transportation in
commercial and public fleets exist today and will grow in
the future. Avista can begin to effectively support this
growth. This starts with information, tools and consulting
services for light-duty passenger EVs and electric lift
trucks (forklifts) in 2021, followed by commercial delivery
vehicles, airport ground-support equipment, and
refrigerated trailer units in subsequent years. A pilot EV
TOU rate for commercial customers and “make-ready”
utility investments will further support electric fleet
expansion.
7 See UTC docket UE-190334, et. al, Partial Multiparty Settlement
Stipulation, pp. 11-12.
Electric forklifts — transportation electrification includes the movement
of both people and goods
Avista Corp. 12
A new program supporting lift trucks is modeled after
other successful utility programs in the U.S. The program
provides information resources, incentives of $2,000 to
buyers, $250 to dealers, and an additional incentive of
$1,000 for lithium-ion batteries, for purchases of Class 1
electrically powered lift trucks. Annually per lift truck, this
will result in avoiding 16 metric tons of CO2 tailpipe
emissions, customer fuel savings of 76%, and $1,500 per
year in beneficial utility revenue. EVSE consultation and
load management services will also be provided.
By 2022, Avista may consider a pilot program with a
transit agency and/or school district to electrify buses, in
conjunction with services benefiting disadvantaged and
low-income groups, as well as testing technologies and
models for load management and emergency backup
power.
Avista will deploy cost-effective load management
services leveraged with EVSE installation programs. This
will initially be accomplished through vehicle program-
ming and the utilization of programmable non-networked
EVSE. Experimentation with new technologies and
industry innovations will also be considered, such as the
utilization of advanced metering infrastructure (AMI).
Load Management, Planning
and Grid Integration
Avista will continue to monitor and document EV load
profiles, using a smaller test pool of customers with
vehicle telematics connectivity starting in 2021. Updated
annual load profiles and forecasts for EVs will be
integrated with System Planning and the Integrated
Resource Plan (IRP). This will be used in conjunction with
updated modeling of grid assets and conditions, other
load forecasts, and the effects of distributed energy
resources (DERs), providing a sound assessment of
system generation capacity, localized distribution system
impacts, and optimized asset management.
Avista will deploy cost-effective load management
services leveraged with EVSE installation programs. This
will initially be accomplished through vehicle program-
ming and the utilization of programmable non-networked
EVSE. Experimentation with new technologies and
industry innovations will also be considered, such as the
utilization of advanced metering infrastructure (AMI) and
other technologies that communicate with EVs and other
distributed energy resources, given the potential to
optimally manage loads and integrate with the grid at
scale. Residential TOU rates may also be considered and
piloted with groups of customers participating in the
EVSE program, starting in 2023. By 2025, the goal is to
demonstrate greater than 50% peak load reduction from
EVs, achieving grid benefits larger than expenses
required to perform load management.
Technology and Market Awareness
Avista will utilize a deliberate process of innovation and
testing of emerging opportunities in electric transporta-
tion. During the initial monitoring phase, thresholds may
be identified based on total cost of ownership (TCO)
assessments and other promising technology and market
developments, triggering pilot programs that test
technical feasibility, costs and customer experience on a
small scale and at low risk. Pilots may lead to informed
deployments that can scale up over the long term,
achieving sustained benefits for all utility customers.
In the light-duty sector, installed battery pack price and
energy density of batteries are key metrics to track, along
with the number of models, charging speeds, prices and
Avista Corp. 13
sales penetration levels. In other sectors, various
technologies and the state of the market will be monitored
in medium and heavy duty applications, micro-mobility
innovations, V2X and networking/control systems,
autonomous EVs, aircraft, rail and marine applications,
and hydrogen-powered EVs.
Rate Design
A new pilot rate schedule as proposed in this Plan is
essential to support sustainable growth in fleet
electrification and public DC fast charging. The proposed
rate provides for reasonable recovery of utility costs
based on additional time-of-use (TOU) energy charges,
while eliminating demand charges that currently inhibit
market growth. In this way, it establishes sensible electric
billing rates for businesses that invest in electric fleets
and public charging, encouraging early and sustained
fleet adoption, larger workplace charging facilities, and
third-party ownership of public DC fast charging. Through
higher on-peak price signaling, it also encourages more
off-peak charging which is beneficial to all customers.
The new EV rate schedules will be made available to
commercial customers, provided that EV charging loads
are metered separately from other loads and peak
demand does not exceed 1 MW. Above this threshold,
verified load management systems may be required and
it must be demonstrated that all reasonable measures are
being taken to mitigate impacts to the local distribution
grid as a condition of utilizing the pilot rate. The EV TOU
energy charge on the order of $0.05 per kWh is applied,
in addition to regular energy charges on a seasonal
basis, during the hours of 7am to 10am and 5pm to 8pm
from November through March, and 3pm to 7pm from
April through October. Provisions of existing commercial
rate schedules apply other than the removal of demand
charges and the addition of on-peak energy charges, and
the EV TOU rate will adjust commensurate with other
normal adjustments to respective commercial rates.
Eligible customers may choose to adopt the pilot EV TOU
rate starting in 2021, with open availability through 2025.
At that time, the Company intends to propose a more
permanent commercial EV TOU rate based on collected
data and analysis completed during the 2021-2025 pilot
period. Customers initially participating in the pilot rate
may then choose between the new EV TOU rate or elect
to continue with the pilot rate for another five years
through 2030. Early adopters are thereby given
reassurance that the pilot rate may be applied through
2030 when they consider making sizable capital
investments in new electric fleets and charging
infrastructure with long service lives.
A relatively small number of customers is expected to
participate in the pilot EV TOU rate, so that the general
body of customers is not materially affected. In addition to
encouraging early adoption, the pilot TOU rate is
intended to provide valuable data, including local
coincident loading patterns and impacts on the
distribution system, enabling development of a more
permanent EV TOU rate schedule.
Experience with a limited number of commercial
participants will also be valuable in consideration of a
pilot EV TOU rate for residential customers starting in
2023, potentially on a larger scale with the deployment of
Advanced Metering Infrastructure (AMI).
Utility Fleets, Facilities and Employee
Engagement
Utilities must set a good example for customers in
electrifying their own fleets and facilities, as well as
encouraging employee engagement around electric
transportation. In addition to realizing fleet and employee
benefits, through direct experience in these areas the
Company is better able to advise customers, and
Testing Battery Electric Buses—Spokane Transit Authority (2019)
Avista Corp. 14
employees who drive EVs act as credible ambassadors in
the community, raising positive awareness and long-term
adoption of EVs in the region.
Avista has successfully electrified its small pool of
passenger vehicles and plans to continue evaluating and
piloting fleet electrification, including medium- and heavy-
duty utility vehicles and auxiliary equipment. These
initiatives will be carefully considered and deployed in
operational fleets, as reliable operations must be
ensured. Adequate workplace charging at Avista facilities
coupled with effective employee engagement around
electric transportation options, can make a big difference
in employee adoption—which translates to higher
awareness and long-term EV adoption in the community.
The Company will look to partner with OEMs to offer
purchase discounts to employees and at some point may
consider supplementing this with incentives funded by
shareholders when EV availability and choices in the
market would yield the greatest positive effects.
Programs and Activities Summary
Programs and activities for 2021–2025 are summarized
below, with budget targets to overall program funding.
These are initial budget targets subject to uncertainties in
customer participation levels, partner capacities, and
diligent adjustments based on regular assessments of
program costs and benefits. Activity and spending levels
will also change over time with new learning and changes
in technology, policy and market conditions. For example,
changes in actual EV adoption trajectories would effect
EVSE buildout plans; or similarly, as viable markets
develop for fleets, supportive utility programs addressing
those opportunities would grow as appropriate. Different
program elements are related and support each other,
requiring integrated management and regular
adjustments in order to be most effective.
Avista proposes to fund these programs and activities
over the next five years with an overall capital and
expense budget of $2 million to $6 million per year in
Washington, and $0.5 million to $1.5 million per year in
Idaho. This is the estimated level of activity required to
achieve strategic objectives, adjusting to changing market
conditions as appropriate.
Utility capital investments will result in an increase of less
than 0.25% annual revenue requirement in Washington
for electric customers, net of benefits from electric billing
revenue, load management and any monetized
environmental benefits that may become available.8
Programs and activities in Idaho are in the early stages of
consideration, tailored to its market condition and
focusing on early learning and more limited programs that
demonstrate the value of beneficial electric load growth in
transportation; including mitigation of peak loads,
leveraging lessons learned and integrating with
respective programs in Washington.
Over the longer term, the benefits from electric
transportation are expected to outweigh utility costs,
thereby providing direct and recurring net benefits to all
utility customers. This outcome and the realization of
major economic and environmental benefits for the region
are the ultimate goals of the TEP.
8As directed by legislation, see Revised Code of Washington (RCW)
80.28.360 (1), https://app.leg.wa.gov/RCW/default.aspx?
cite=80.28.360, Washington State HB1853 (2015), HB2042 (2019), and
SB5116 (2019). https://app.leg.wa.gov/billinfo/
45% EVSE Installations and
Maintenance
30% Community and
Low-Income Support
10% Education and Outreach
5% Commercial and Public
Fleets
5% Load Management,
Planning and Grid
Integration
3% Market and Technology
Monitoring & Testing
2% Data Management,
Analysis and Reporting
Programs and Activities
with Budget Targets
Avista Corp. 15
Table 2: Program and activity timeline (2020-2025)
The TEP will be updated and reissued in five-year intervals starting in 2025. Summary year-end updates
will be provided for 2021 and 2023 focusing on expenses, revenues and high-level program results. A more comprehensive mid-period report will be provided in early
2023 including updates on EV adoption and forecasts; program activities; lessons learned; and adjustments.
Detailed reporting will also be included with the updated TEP submitted by year-end 2025, along with modeled
impacts on the environment, the economy and the grid.
New program filings may be submitted for regulatory review on an ongoing basis and later incorporated in
regular revisions to the TEP.
Program/Activity 2020 2021 2022 2023 2024 2025
Develop public EVSE buildout plan with stakeholders X
Initiate DCFC site acquisitions X
Solicit public AC Level 2 applications X X X X X
Launch EVSE installation programs — all categories including low-income assistance X X X X X
Design and launch education and outreach cam-paigns X X X X X X
Solicit proposals and award EV and EVSE to com-munity service organizations X X X X X X
Launch and sustain fleet support program — lift trucks and light-duty passenger EVs X X X X X
Extend fleet support program — airport GSE, refrigerated trailers, other commercial vehicles X X X X
Design and pilot an EV Experience Center X X X X X X
Design and pilot a TNC program X X X X X
Design and pilot mass transit and school bus pilots X X X
Collect telematics and meter data; update load profiles for System Planning and IRP X X X X X
Perform load management experiments including telematics and programmable EV/EVSE X X X X X
Update grid impacts, costs and benefits X X X X X
Expand utility fleet electrification, facility EVSE and employee engagement programs X X X X X X
Pilot commercial EV TOU rate X X X X X
Post-pilot commercial EV TOU rate X
Pilot residential EV TOU rate X X X
Submit annual updates and mid-period report X X X X
Submit revised TEP X
Avista Corp. 16
Background
On April 28, 2016, the Washington Utility and
Transportation Commission (UTC) issued Order 01 in
Docket UE-160882 approving Avista’s tariff Schedule 77
for its EVSE Pilot Program. The initial two-year
installation term of the program began with the first EVSE
installation on July 20, 2016.
On June 14, 2017, the UTC issued a Policy and
Interpretive Statement Concerning Commission
Regulation of Electric Vehicle Charging Stations in
Docket UE-160799. It provides background and guidance
principles for utility EV charging as a regulated service,
and notes that the purpose of Avista’s pilot program is to
obtain data and experience that will inform future
programs and rate designs.
On February 8, 2018 the UTC issued Order 02 in Docket
UE-160882 approving Avista’s proposed revisions to tariff
Schedule 77. This included extending the installation
period of the program with additional EVSE installations
through June 30, 2019, as well as adding a program
benefiting low-income customers and a few other minor
adjustments. The pilot’s EVSE installations were
concluded in June, 2019, and a final report was
completed in October, 2019. Ongoing program
management includes EVSE maintenance and data
Figure 5: Ownership models for utility and customer EVSE infrastructure
Avista Corp. 17
Avista’s AC Level 2 installations
followed the “EVSE only” model in
both residential and commercial
locations, and DC fast charging sites
followed the “full ownership” model.
A simple EVSE rebate program is an
example of the “traditional” business
model, where nothing is owned by
the utility beyond the meter and
conditional rebates from the utility
are provided for EVSE purchased
and installed by the customer. A
“make ready” program typically
involves new utility commercial
service, including dedicated meters
and in many cases premises wiring
or supply infrastructure that is
owned and maintained by the utility,
stubbed out to the EVSE location. In
“make ready” models, the EVSE
itself is owned and maintained by
the customer, and in some cases
the utility may provide subsidies to
the customer for EVSE purchase,
installation and/or maintenance. Full
ownership involves a dedicated
transformer, meter, supply
infrastructure and the EVSE itself, all
owned and maintained by the utility.
AC Level 2 or DC fast charging sites
can fall in this category, with EVSE
user fees applied and subject to
regulatory oversight.
Avista chose the “EVSE only” and
“full ownership” models for the
EVSE pilot as an alternative to
other, more common utility EVSE
rebate and “make-ready” programs.
It was felt that by utilizing existing
supply panels and other supply
infrastructure owned by the
customer in residential and
commercial locations in the “EVSE
only” model, costs could be much
lower than comparable “make ready”
installations with new dedicated
services and infrastructure. Further,
it seemed possible that utility EVSE
ownership and maintenance might
be an effective way to provide the
most value and satisfaction for
customers in terms of reducing the
costs, risks and difficulties of
installing EVSE, while providing a
means for effective load manage-
ment, without the need for further
incentives or a time-of-use (TOU)
rate to shift peak loads. Due to the
more substantial investments and
effort to implement DCFC sites and
maintain them, the full utility
ownership model was chosen to
ensure long-term DCFC operability
and public access.
In order to comprehensively
understand EV charging behavior
and electrical loads from different
locations, it was necessary to build
an EVSE “ecosystem” integrated by
a single network, thereby capturing
the charging data for individual EV
drivers wherever they might charge
– at home, at work or in the public —
for both AC Level 2 and DC fast
charging. It was important to
incorporate hardware and software
that was “interoperable,” using
industry-standard communication
protocols (such as the OCPP
standard), so that risks and
operational flexibility could be well
managed. This enables “plug and
play” deployment of alternative
EVSE or EVSP providers in the
future as the competitive market and
products mature. The overall design
is depicted below, with the maximum
allowed number of ports in each
major category.
Figure 6: Integrated EVSE network design for the EVSE pilot (2016—2019)
Avista Corp. 18
The numbers and proportions of
EVSE in each category were
carefully chosen to accomplish
learning objectives and begin to
support EV adoption in Avista’s
service territory, while containing
costs to a modest level. Uninflu-
enced load profiles for different EV
driver types and in different locations
could be reasonably established in
the first phase of the pilot, followed
by direct load management of
networked AC Level 2 EVSE at
residential, workplace, fleet and
MUD locations.9
These comparisons allow for a
better understanding of customer
behaviors and more robust grid
impact and economic modeling,
influencing future program designs.
The proportional targets were also
informed by the literature, showing
different volumes and supporting
roles that EV charging plays in each
segment. As shown by the
“Charging Pyramid,” all types of
charging are important in the overall
light-duty EV “ecosystem,” but as
much as 90% or more of all charging
occurs at residences, fleet locations
and the workplace, where EVs are
parked for long periods of time and
may charge at lower power levels
and at reduced costs. This is
especially so if the charging may be
reliably and economically shifted to
off-peak times, maximizing benefits
for all utility customers.
Program design also incorporated
the objective of providing support for
early EV adoption. This could be
accomplished by addressing the
barriers of low awareness and lack
of EVSE infrastructure, through
initial education and outreach
efforts, dealer engagement including
a referral program, and residential
EVSE offerings, as well as
commercial EVSE buildout at
workplace, fleet and public
locations—all intended to help form
the first substantial backbone of
EVSE infrastructure in eastern
Washington.
Finally, with the backdrop of
legislation passed in Washington
State in 2015 and 201910 and
growing consensus and support on
a global scale, a societal purpose
has been established for the
reduction of greenhouse gas
emissions (GGEs). It is recognized
that the transportation sector is the
largest contributor of GGEs and
other hazardous air pollutants, that
electrification of the transportation
sector can provide a high return on
investment in reducing emissions,
and that utilities must be fully
engaged to play a key role in this
transformation. The EVSE pilot was
therefore launched as a starting
point to explore how the Company
may better serve all customers,
achieving major economic and
environmental benefits in the long-
term effort to electrify transportation,
partnering with industry, customers,
local governments and policymak-
ers.
9 Load management of public AC Level 2 and
DC fast chargers is not feasible as EV drivers
need maximum charge for limited periods of
time at public locations.
10 See Washington State HB1853 (2015),
HB2042 (2019), and SB5116 (2019). https://
app.leg.wa.gov/billinfo/
Figure 7: The Charging Pyramid (courtesy EPRI)
Avista Corp. 19
In summary, key takeaways from the
EVSE pilot included the following:
1. Data and analysis show that grid impacts from light-
duty EVs are very manageable over at least the next
decade, net economic benefits can extend to all
customers, and significant reductions of greenhouse
gas emissions (GGE) and other harmful air pollutants
may be achieved with EVs. However, grid impacts and
costs resulting from EV peak loads could become
significant over longer time horizons, with higher EV
adoption, and as other loads and the grid change. The
EVSE pilot represents a good start in the Company’s
ongoing effort to understand how EV loads may be
optimally integrated and managed, in an evolving
system that brings the most benefit to all customers.
2. Avista was able to cost-effectively install EVSE,
resulting in high customer satisfaction, and the pilot
correlated with a significant increase in the rate of EV
adoption in the area. This demonstrated that utility
programs can be effective in supporting and enabling
beneficial EV growth. Partnerships with industry
providers, a focus on providing value for the customer,
and contractor performance were keys to success.
3. Workplace charging stands out as a powerful catalyst
for EV adoption, while simultaneously providing grid
benefits from reduced EV charging at home during the
evening peak hours.
4. Low dealer engagement, a lack of EV inventories, and
persistent customer awareness and perception issues
continue to be a major barrier to mainstream EV
adoption in the region. The utility can help overcome
these issues with robust education and outreach
programs, including dealer engagement.
5. Avista successfully demonstrated the use of EVs to
reduce operating costs for a local non-profit and
government agency serving disadvantaged customers.
The Company expects local stakeholder engagement
to continue in the development and expansion of
similar programs, as well as other innovative ways to
serve communities and low-income customers.
6. Surveys showed a widespread desire for more public
AC Level 2 and DC fast charging sites, which may be
supported in future utility programs and rate designs.
A new rate should be developed to address
operational cost barriers resulting from traditional
demand charges, while reasonably recovering utility
costs.
7. Networked EVSE reliability, uptime, costs and
customer experience are all important opportunities for
improvement, reinforcing the importance of utilizing
interoperable networked EVSE. Non-networked EVSE
are very reliable and cost effective, and should be
utilized wherever possible unless data collection, user-
fee transactions, remote monitoring or other
requirements necessitate the use of networked EVSE.
8. Load management experiments showed that the utility
may remotely curtail residential peak EV loads by
75%, while maintaining customer satisfaction and
without a TOU rate or additional incentives other than
the installation of the EVSE owned and operated by
the utility. More DR experimentation may show the
feasibility to shift an even higher percentage of peak
loads. While EVSE load management utilizing DR and
V1G technology appears acceptable from a customer
perspective, reliability and costs must be significantly
improved to attain net grid benefits and enable
practical application at scale.
9. Data and analysis were somewhat limited by the
available pool of participants and EVSE sites.
However, results compared well with other studies
using larger population samples, and EVSE data was
satisfactorily replicated and verified by telematics data.
As the industry evolves, light-duty EVs with larger
battery packs may become the norm. In this respect,
the EV load profiles developed and examined in this
study may under-predict electric consumption and
peak loads to some degree.
Avista Corp. 20
Technology
and Markets
Transportation electrification is
affected by a variety of technology
and market forces, which Avista will
closely monitor to inform the TEP.
There are factual trends as noted
below, but it is uncertain how these
forces will shape vehicle and
equipment design, production and
timing decisions, and how this in
turn will interact with evolving market
and customer preferences. One
thing is clear—the Company must
keep abreast of the changing
landscape and adjust its plans
accordingly on a regular basis.
Given these changes and historical
examples of technology adoption, it
seems likely that the transportation
sector is on the cusp of a major
transition toward electrification. To
illustrate, the following chart shows
the rate of new technology and
product adoption in U.S. households
over the last century.11
Note that adoption rates for new
technologies typically follow an S-
curved shape. A period of initial slow
growth is followed by rapid
acceleration, before flattening out
with market saturation and in some
cases eventually declining, such as
that for landline telephones. While
these examples cannot be used to
reliably predict the adoption curves
for various forms of electrified
transportation, they do provide
insight and highlight the importance
of monitoring technology and market
trends in a rapidly changing
environment. Due to a number of
complex and interactive factors,
adoption of a given set of
technologies and products may
suddenly surge unexpectedly, such
as the case for cellular phones. To
help explain this, as the market and
technologies developed for cellular
phones, they could increasingly be
used for more than just telephone
conversations—they could be used
to send text messages; take
pictures; store, play and share music
and other media; and connect with
the internet and its myriad of
11 “Electrification Futures Study”, NREL 2018
(p. 16).
Figure 8: Diffusion of various technologies in U.S. households
Avista Corp. 21
expanding, derivative services.
Beyond the advantage of mobility,
cellular phones opened up a whole
new platform for greater connectivi-
ty, functionality, and access to other
services and benefits that land-line
phones could not offer. Similarly,
EVs may open doors to a variety of
benefits and services that traditional
vehicles cannot, in addition to
tremendous operational savings and
a superior driving experience.
Together with supportive policy and
societal factors, this could strongly
influence customer preferences and
adoption rates beyond first-order
economics. On the other hand,
considerable technological and
market hurdles remain, and
transportation electrification could be
dampened by existing fleets and
infrastructure with long service lives,
as well as powerful influence by
incumbent interests and the inertia
of the status quo.
Another useful framework to
consider is the Technology Adoption
Lifecycle for disruptive products as
originally described by Everett
Rogers and later expanded upon by
Geoffrey Moore in his classic work,
“Crossing the Chasm.” 12,13,14 As
explained by Moore, when a new
disruptive technology enters the
market, first adopters known as
“innovators” and “early adopters” are
most interested in new technology
and performance. These two groups
represent about 15% of the total
market assuming a bell-curve
distribution, and they are willing to
deal with some inconvenience and
price premiums as a trade-off to
using a new and exciting innovation.
2019 saw U.S. sales of plug-in EVs
at 325,000 vehicles, about 2%
market share in a new-car market of
17 million vehicles—clearly still in
the early stage of market adoption.
In order to sustainably gain entry
into the mass market beyond this
level, a “chasm” must be crossed
whereby the product appeals to the
“early majority”, typically when it is
able to be sold on a more practical
basis to non-technologists less
willing to tolerate inconvenience and
higher prices.
12 Everett, Rogers. “Diffusion of Innovations.”
1st Ed. (1962).
13 Moore, Geoffrey A. “Crossing the Chasm:
Marketing and Selling Disruptive Products to
Mainstream Customers.” Harper Business,
3rd Ed. (2014).
14 UTC (p. 29).
Figure 9: The Diffusion of Innovations (Rogers)
Avista Corp. 22
The challenges of crossing the chasm are often
considerable—many disruptive innovations never cross it
and remain confined to a small segment of the market, or
decline into obscurity. However, based on the level of
global investment, the march of technology advances and
cost reductions, and supportive policy based on rising
concerns of climate change, we can reasonably expect
an inflection point in the light-duty EV market in the 2023-
2024 timeframe, and possibly some other market
segments as well, such as battery electric transit buses.
Assuming OEMs deliver strong product and critical
market barriers such as charging infrastructure and
awareness issues are addressed, EVs appear likely to
cross the “chasm” soon thereafter, and sustainably make
inroads into the early mass market at the 15%
penetration level sometime between 2026 and 2030.
In this timeframe, Avista can play a strong role in
addressing a number of market barriers – particularly
EVSE infrastructure and customer awareness – while
paying close attention to key technologies and changing
conditions as noted below.
Battery Technology
Falling battery costs and improved performance are
key trends to monitor as they represent a significant cost
item in electrified vehicles. Average market prices for
battery packs fell from $1,100/kWh in 2010 to $156/kWh
in 2019, and may further decrease to $100/kWh by 2023,
according to Bloomberg New Energy Finance (BNEF).
Ongoing price reductions will be driven by battery
production at scale and the utilization of high-energy
density cathodes that store energy more efficiently.
Further price reductions are not "impossible," but will be
more complicated because "there are a variety of options
and paths that can be taken," such as standardizing
battery pack designs across different EV models or
introducing new technologies to improve the batteries
themselves, like new cathode materials.15
Changing battery chemistries and thermal
management are two areas where the most cutting-
edge R&D work is happening. While lithium-ion (Li-ion)
batteries are expected to continue as the predominant EV
battery technology in the near term, various other
chemistry combinations with Li-ion are advancing, and
solid-state batteries are also expected to emerge as cost-
viable options. Newer cell chemistry, and different
materials in battery cathodes and anodes, are expected
to result in higher energy densities and lower reliance on
rare materials such as cobalt.
Rising battery voltages. Current vehicles powered by
internal combustion engines (ICE) use a 12V battery for
starting the engine and supplying auxiliary loads. By
comparison, early EV models such as the Nissan Leaf,
GM Bolt, Tesla Model S and Audi e-Tron all have battery
voltages at the pack level between 300 to 400 volts. Next-
generation EV models such as the Porsche Taycan have
pack voltages at 800 volts and as high as 1200 volts,
which will allow for much faster charging times as EVSE
power capacities rise from 50kW to 350kW and possibly
higher without increasing electric current.16 This is
necessary to minimize heat and maintain conductor size
and weight within limits for human use. In addition to
overcoming the issue of charging infrastructure
availability, these higher power levels will reduce
refueling time by 67% to 86%, making it much more
convenient to charge an EV in public.
Battery management systems, impacts on battery life
and OEM warranties. Automakers typically cover the
lithium-ion battery pack under warranty for an extended
period. In recent years the standard offer has been at
least eight years or 100,000 miles, whichever comes first.
Some manufacturers will cover the battery pack against
total failure, while others will replace it if the battery’s
capabilities fall below a certain level, such as 60-70% of
the battery’s original capacity. More recently, the state of
California mandated automakers to extend the battery
coverage for EVs sold within that state to 10 years or
150,000 miles. Other OEMs have gone further; for
example Hyundai, has increased its battery warranty to
lifetime coverage on the Kona Electric. Battery
performance and warranty concerns were a significant
unknown when the first EVs began to be sold in the 2011-
2016 timeframe. Batteries lose capacity over time due to
15 2019 Battery Price Survey, Bloomberg New Energy Finance.
16 Batteries and Electrification R&D Overview. Steven Boyd, Program
Manager, US Department of Energy, June 18, 2018.
Avista Corp. 23
factors including the number of discharge/recharge
cycles, depth of discharge, and ambient operating and
storage temperature, all of which can exacerbate
degradation depending on cathode and anode
chemistry.17 Through improvements in chemistries and
robust battery thermal management systems, significant
long-term degradation can be minimized while operating
applications can expand.18 A GM battery engineer
recently noted that they had conservatively treated the
battery’s capabilities in the Volt and Bolt vehicles.19 We
are now seeing EVs sold in the last four to five years
driven well over 100,000 miles, and it is becoming clear
that battery management systems will enable EVs to
travel at least this far and possibly much further before
there is a significant reduction in battery performance and
driving range.
Battery degradation and second-life use. EV battery
packs tend to degrade slightly with each charge and
discharge cycle, eventually losing their ability to fully
charge. Draining most or all of a battery’s charge on a
regular basis tends to cut into its capacity more quickly
over time. For this reason, older EVs with shorter
operating ranges can suffer incrementally faster
deterioration than newer EVs with 200+ miles of range,
as they can be drained more deeply and frequently to
meet driving range requirements. Until recently, EV
batteries were best maintained by avoiding deep
discharges and frequent DC fast charging. Today, thanks
to more advanced battery management systems, these
concerns are gradually being eliminated. The inherent
chemistry and design of an EV battery varies from one
make and model to another. EV battery packs generally
contain a series of connected individual cells, perhaps
several hundred of them depending on the model, instead
of a single massive unit. It is often difficult, if not
impossible, to combine cells from different manufacturers
and different chemistries in second-life applications.
As long as detailed battery charging history at the cell
level is available, battery remanufacturers (such as 4R
Energy, Spiers New Technologies and others) have
expressed a willingness to take less degraded cells from
an EV battery pack and “repackage” them for other
applications, including use in another vehicle and for
stationary storage applications. One such application is
the secondary use of batteries originally in Class 8 heavy-
duty trucks, deployed for second-life use in smaller,
lighter-duty vehicles for local deliveries where required
travel distances are not as long. This use case is
facilitated when both the first and second vehicles are
from the same manufacturer. However, it is possible that
advanced new-battery costs may approach “refurbished”
battery costs when this market materializes, probably in
the 2030 timeframe. Other stationary applications may
someday extend the use of batteries beyond their first
applications, such as for traffic lights, streetlights, and
home energy storage. American Electric Power is
currently testing this application using batteries from older
-model Nissan LEAFs.
Today, the market is hesitant to commit to acquisitions of
second-life batteries at some future date, mainly due to
rapidly falling battery prices and the challenges involved
with “mixing-and-matching” batteries from different
manufacturers. Second-life battery uses may become
more feasible when a change in battery ownership does
not occur— i.e., the battery continues to be owned by the
same party that bought the original vehicle. In this case,
the owner can confidently know the battery history and
condition, and its suitability for future use. Owners and
operators of future electric fleets in the tens or hundreds
of thousands of vehicles are a natural market for
refurbished batteries, as their vehicles and business-use
cases have varying performance and range
requirements. Fleet owners at some point will also likely
need to add local energy storage at their depots in order
to reduce demand on the local distribution grid, and to
acquire and store energy when utility TOU rates are
lowest. In this respect, second-life use of fleet batteries
may become a viable option.
17 https://www.researchgate.net/publication/335672438_A_
Wide_Range_of_Testing_Results_on_an_Excellent_Lithium-
Ion_Cell_Chemistry_to_be_used_as_Benchmarks_for_New_Battery
_Technologies
18 https://www.energy.gov/sites/prod/files/2017/10/f38/XFC%
20Technology%20Gap%20Assessment%
20Report_FINAL_10202017.pdf
19 https://electrek.co/2020/02/10/gms-director-of-battery-cell-engineering
-were-nowhere-near-the-bottom-of-the-price-curves/
Avista Corp. 24
Much has been written in the industry media about the
possibilities of utility purchases of second-life batteries for
smart grid deployments. Recent utility RFPs for energy
storage applications at generation and substation sites
require large volumes of identical cell technologies which
the current “refurbished” battery supply chain cannot
meet. This is because battery chemistries are unique to
each OEM and in many cases, to each vehicle model and
model year. In general, the financial viability of second-
life battery use in utility applications remains elusive
today, but this could eventually change and therefore
progress in this area should be monitored.
Battery recycling. Once the primary (in an electric
vehicle) and secondary (stationary storage applications)
uses have expired, the battery can be recycled to obtain
reusable materials such as lithium, cobalt, nickel and
other metals. Advanced processes are still in
development to make recycling these materials more
economical, with several companies currently working on
the technology. However, if the electric vehicle market
grows as expected, significantly increased demand for
battery materials may become a major challenge. Avista
plans to monitor battery recycling developments, but the
current assumption is that the market will be able to
successfully recycle large numbers of EV batteries when
they reach end-of-life, estimated to be at least a decade
away. New chemistries that are currently in development
may further mitigate the issue, for example, reducing the
need for rare materials such as cobalt.
EVSE Technology
Smaller footprint and higher power output. 50kW is
the current baseline for DCFC connected to light-duty
(Class 1) passenger EVs, using both the CHAdeMO and
CCS-1 charging protocols. While still an industry
mainstay, the 50kW platform is quickly being overtaken
by fast charging at the 100kW to 175kW level. Many
Tesla Supercharger sites, for example, currently offer fast
charging at 120kW and higher. Within the next few years,
the 50kW “standard” will be superseded by 175kW as
the de facto standard, and the subsequent “standard”
after that will be 350kW. Electrify America is already
installing 350kW DCFC at some of its locations, such as
the current site in the Spokane Valley near I-90. In the
heavy-duty vehicle space (Class 6 and above), a number
of vehicle and EVSE manufacturers are working through
a CharIN committee to develop an industry-wide set of
specifications for charging at the 1MW to 2MW level and
above.20 According to CharIN, the High Power Charging
for Commercial Vehicles (HPCCV) standard will be used
for charging in the range of 200 to 1500 volts and up to
3000 amps. That should be enough to address the needs
of heavy-duty electric vehicles with very large battery
packs of 1 MWh.21
Communications interoperability. There is a clear
global movement among EV charger manufacturers and
software providers to make their equipment and
capabilities comply with the Open Charge Point Protocol
(OCPP).22 Current compliance is at the entry 1.6 level,
with the industry moving toward the more complex and
sophisticated 2.0 level that provides additional security,
functionality, transactions handling and smart charging
capabilities. Innovative Charging Protocol ISO/IEC 15118
is mostly about communications standards between the
EV, EVSE and the cloud. It’s important to stay aware of
developments in this area and ensure compatibility with
other smart grid initiatives that Avista may undertake in
the future.
EVSE interchangeability is an important capability when
owning and operating a portfolio of EV chargers from
different manufacturers and vintages. To manage this
diverse portfolio, it will be important to adopt open
standards such as OCPP as much as possible for several
reasons, including minimizing operational and financial
risks associated with adopting proprietary products and
services. In other words, EVSE that are fully compliant
with OCPP may be more readily swapped out with other
EVSE or switched to another EVSP in the event of
performance issues or business failure with either EVSE
or the EVSP. This also has the added benefit of
supporting healthy competition in the marketplace.
20 https://insideevs.com/news/372749/charin-hpccv-over-2-mw-power/
21 https://www.charinev.org/fileadmin/HPCCV/
High_Power_Commercial_Vehicle_Charging_Requirements_v2.0.pdf
22 https://insideevs.com/news/372749/charin-hpccv-over-2-mw-power/
Avista Corp. 25
Connector standards are another aspect of
interoperability that must be monitored. While the EV
industry was able to broadly adopt a common plug
configuration for AC Level 1 and Level 2 charging using
the J1772 standard, there are now de facto three-plug
configurations for DCFC in North America: CHAdeMO,
CCS-1 and Tesla. CHAdeMO and CCS-1 are not
compatible. Tesla vehicles cannot be fast charged using
the CCS-1 connector in North America. It is possible to
purchase a special cord/adapter23 to enable a Tesla
driver to use a CHAdeMO charger, but this adapter is
often out of stock, and CHAdeMO currently limits power
output to 50kW, well below the 120kW or higher
capability of the Tesla Supercharger network. Given the
three different DCFC connector standards, two
developments have occurred which merit attention. One
is the co-location of CHAdeMO, CCS and Tesla chargers
in the same location. The Marengo Charging Plaza in
Pasadena, CA is an example.24 EVGo and Tesla have
entered into an agreement offering Tesla’s proprietary
connectors at EVGo DCFC sites, which previously
offered only CHAdeMO and CCS connectors. Similarly,
Avista should consider partnering with Tesla to allow for
additional investment by Tesla to install their chargers at
DCFC sites, providing for greater utilization and beneficial
utility revenue while avoiding additional utility investment.
Inductive charging. Much of recent charging
technology development has involved conductive
charging for both passenger and heavier-duty vehicles,
with less attention to inductive charging despite the early
lead it enjoyed with inductive “paddle” chargers in the late
1990s. A number of wireless charging companies and
auto OEMs have worked on making inductive charging
more viable over the last decade, but aside from a few
demonstration projects, commercial scale projects have
been limited. Most recently, however, the Antelope Valley
Transit Authority (AVTA) in California installed inductive
chargers for in-route charging of its electric fleet of 50
buses, including both 40-foot and 60-foot articulated
buses, in daily operations. Many inductive chargers have
been installed, with a total of fifteen (15) 250kW wireless
charger installations expected by April, 2020. Clearly, if
this technology works well at 250kW, it will become a
viable option for charging smaller vehicles as well, but
requires the inductive charging mechanisms to match on
both the vehicle and the charger embedded in the
ground. As such, the initial applications for inductive
charging are likely to occur where both decisions are
made by a single decision maker (such as public and
private fleets). Initial concerns include higher power
losses when compared to conductive charging, and its
uncertain durability and performance in harsher weather
climates, including colder temperatures and snow/ice.
Avista will monitor the progress of inductive charging
closely, as it could affect EVSE deployments needed in
the marketplace, as well as inform and assist potential
commercial customers as appropriate where
opportunities emerge.
Light-duty EV Market and Consumer Preferences.
Key considerations for passenger vehicle buyers include
the items listed below. Each of these considerations is
probably a “gating” factor – if each item can’t be met
satisfactorily, car buyers in the mass-market segments
are not likely to proceed with an EV purchase.
No range anxiety. Over 300 miles of range on a full
charge probably eliminates most concerns over
range
Charging locations — at home, at work, in the
community near home, and in other destinations in
the area as well as along longer trip routes
Style of vehicle – sedan, crossover, SUV, truck,
etc.
First cost (purchase price) of an EV compared to an equivalently sized and featured ICE vehicle
Fuel and maintenance costs for electricity
compared to gasoline/diesel
There are currently over 40 passenger EV models
available in US markets (including both PHEV and BEV).
Another 20 models are expected in the next two years,
including more light-duty passenger vehicles and pickup
trucks.25 More delivery vans, transit and school buses,
and heavier duty (Class 6-8) vehicles are in the process
of prototyping or commercial service deployment.
23 https://shop.tesla.com/product/chademo-adapter
24 https://cleantechnica.com/2020/02/17/largest-ev-fast-charging-station-
in-the-us-opens-in-pasadena-california/
25 https://www.latimes.com/business/story/2020-01-17/ev-sales-fizzle
Avista Corp. 26
In the passenger market, almost all
traditional OEMs have limited EV
production runs and have not made
great strides in increasing EV sales.
Tesla, coming from a technology
background, is a noticeable
exception. They successfully
captured the “EV lifestyle” attractive
to key early adopter customer
segments with a product line that
fundamentally started fresh, as
opposed to electric versions of ICE
models offered by legacy auto
OEMs. About half of the 325,000
U.S. EV sales in 2019 occurred in
California. Out of total U.S. sales,
Tesla’s three models accounted for
192,500, dominated by Model 3
sales of 158,925.26 While not a
traditional OEM, Tesla is clearly the
market leader with a 59% market
share of all new EVs sold in 2019.
Utilities cannot ignore the fact that
among their customers choosing to
buy an EV, a large majority are
buying Tesla products. In the case
of Spokane County, 70% of new
EVs were Tesla models, with
customers buying these vehicles
online, accepting delivery outside
the Spokane area, and driving them
back home.
Announced investments by auto
OEMs in electric vehicles. Many
auto OEMs have announced a
significant increase in the number of
electrified models made available
over the next 5 years, such as the
Tesla Model Y compact SUV, Ford’s
new Mustang Mach E, the Volvo
XC40 compact SUV, a plug-in
version of Toyota’s best-selling RAV
-4 compact SUV, and an electric
SUV from Rivian, a U.S. startup that
is also working on custom-designed
delivery vans for Amazon. Of
particular interest to Avista’s
customers more interested in pickup
trucks are Ford’s plans for an
electric version of its F-150 pickup
truck on sale starting in 2021, GM’s
plans to offer a Hummer electric
pickup truck starting in 2022, and
Tesla’s Cybertruck with orders being
taken now for deliveries starting in
late 2021.
First cost. A variety of studies
have been published over the years
speculating on when EVs will be
sold at the same initial cost as their
ICE counterparts. In a March 2019
study, McKinsey estimated a
$12,000 cost difference between an
average EV and comparable
vehicles powered by internal
combustion engines in the small- to
midsize-car segment.27
26 https://insideevs.com/news/392372/us-tesla
-sales-graphed-through-q4-2019/
27 “Making electric vehicles profitable”,
McKinsey & Company, March 2019.
Figure 10: Cumulative EVs sold in the U.S. (EEI, 2019)
Avista Corp. 27
McKinsey further identifies cost-
reduction measures that could
achieve purchase cost parity in
2025. ICCT, in a 2019 study,
estimated electric vehicle initial cost
parity coming within 5-10 years, in
2024-25 for shorter-range vehicles
and 2026-28 for longer-range EVs in
sedan, crossover and SUV models.
While most consumers consider
initial cost as the key factor when
acquiring a personal vehicle, the full
economic comparison between an
EV and its ICE counterpart is clearer
when the total cost of ownership
(TCO) is considered. There is close
to total cost parity now for drivers
covering over 30,000 miles annually,
likely will be in the 2022-24
timeframe for drivers averaging
20,000 high-mileage miles per year,
and almost certainly will be by 2025
for almost all other drivers. Avista
customers who drive for transporta-
tion network companies (TNCs)
such as Lyft and Uber typically travel
more than the average customer,
and may become a strong initial
market segment for EVs if they see
robust and reliable charging
infrastructure in place.
New vehicles, particularly EVs, have
significant communications and
computational technology built-in,
allowing for more connectivity with
consumers’ other electronic devices
such as mobile phones, home
energy management and security
systems, electronic calendars, etc.
In some ways EVs are like a
powerful new mobile communica-
tions platform with a motor and
wheels.
More vehicle OEMs are expected to
offer information on their EVs and
market directly to consumers via
web and social media. Tesla only
offers direct sales to consumers,
and Ford recently took the same
approach to accept online
reservations for the upcoming Ford
Mustang Mach-E. Consumers
appear to be more willing to order or
place a deposit for new EVs online.
If this trend continues, the primary
consumer engagement and
education touchpoint will shift away
from the dealership. Avista will be
monitoring this trend along with EV
inventory and sales at area
dealerships to help identify the most
cost-effective methods to share
information on electric vehicles with
its customers, including the
traditional dealer channel and
emerging web and social media
conduits.
Other consumer and market
trends of interest include the rate
of driver licenses among younger
generations (which has been
declining in recent years), car-
sharing services such as ReachNow
and car2go, and TNC ride-sharing
growth on software platforms such
as Uber and Lyft.
28 International Council on Clean
Transportation. International Council on
Clean Transportation.
29 Recent Decreases in the Proportion of
Persons with a Driver’s License across All
Age Groups, Michael Sivak and Brandon
Schoettle. University of Michigan
Transportation Research Institute, January
2016.
30 Cracks in the ridesharing market—and how
to fill them.” McKinsey & Company, July 2017.
Available at: https://www.mckinsey.com/
industries/automotive-and-assembly/our-
insights/cracks-in-the-ridesharing-market-and-
how- to-fill-them
Figure 11: EV model availability (2019 EPRI consumer guide to EVs)
Avista Corp. 28
Medium- and Heavy-duty
Vehicle Electrification
Avista intends to monitor industry adoption of medium-
and heavy-duty electric vehicles, learn from other utilities
serving these applications, build on this information with
pilots when appropriate, and adopt best practices as they
become known and feasible. A good example of public
corporate commitments to fleet electrification is Amazon,
which recently pledged to purchase 100,000 electric
delivery vans by 2030.31 Amazon’s initiative is part of a
plan to convert its entire delivery fleet to using 100%
renewable energy by 2030. Upfront costs associated with
electric trucks and buses are expected to decline
significantly through 2030 as battery prices fall, making
them competitive on a TCO basis.32 According to Atlas
Public Policy, estimated TCO parity timelines are
imminent for electric transit buses, in the 2025-30
timeframe for electric school buses, and after 2025 for
electric medium-duty trucks. Key factors influencing these
timelines include battery costs, availability of public
incentives, and operational fuel and maintenance cost
savings.
Mass-transit battery electric buses (BEBs). A number
of transit agencies have adopted plans to switch to a zero
-emission vehicle fleet by the 2030-40 timeframe. In
addition to “brand-new” buses, several mass transit
districts are converting used buses from diesel to electric,
leveraging existing bus chassis, and reducing the cost of
electric buses. In Avista’s service territory, STA and
Pullman Transit have initiated the deployment of BEBs.
Avista will work closely with these and other transit
agencies to understand the realities of technology and
operational limitations, trends and market barriers that the
Company can help address. This includes load-
management technologies, optimal rate design, and
charging technologies including overhead conductor and
underground inductive power transfer.
Electric school buses. Dominion Energy is currently
implementing a program to bring 50 electric school buses
to 16 localities within Dominion’s Virginia service area.33
Locations were selected on the basis of benefits the
batteries in the buses could bring to Dominion’s
distribution grid. Thomas Built Buses were chosen as the
supplier in phase one of the project. These 50 buses will
be configured with 220 kWh of battery energy capacity
each with an operating range of up to 134 miles, charged
overnight using a 60kW DC fast charging system.34 The
buses are expected to provide environmental and health
benefits through reduced emissions and reduce operation
and maintenance costs for schools by up to 60%. In
subsequent phases, Dominion plans to expand the
program to bring at least 1,000 additional electric school
buses online by 2025. Once phase two is fully
implemented, the buses' batteries could provide enough
energy to power more than 10,000 homes. Phase three
would set the goal to have 50% of all diesel bus
replacements in Dominion Energy's footprint be electric
by 2025 and 100% by 2030.
Electrification of other medium- and heavy-duty
vehicles is increasing in the United States,
particularly in California. High upfront costs and lower
levels of commercialization for all vehicle categories other
than transit buses have limited deployment to date.
Increasing investment in the sector from public and
private sources, however, is expected to generate growth
and significantly increase the number of commercial
electric vehicles of these higher classes in the near term.
Initial deployments of heavy-duty electric trucks (Class 6-
8) will have a 150 to 250 mile range, with use cases
characterized by dedicated, known routes, consistent
charger locations, and relatively predictable environ-
ments. It is unlikely the first round of heavy-duty electric
trucks will be used in long-haul (cross-country)
applications. Class 3-5 markets may be well suited for
electrification, as these vehicles are used primarily for
deliveries with a larger number of stop-and-go events.
31 https://sustainability.aboutamazon.com/sustainable-transportation
32 Electric Trucks and Buses Overview - The State of Electrification in
the Medium- and Heavy-Duty Vehicle Industry. Conner Smith. Atlas
Public Policy. July 2019.
33 https://news.dominionenergy.com/2020-01-16-Dominion-Energy-
Moves-Forward-with-Electric-School-Bus-Program?printable
34 https://thomasbuiltbuses.com/bus-news-and-events/news/thomasbuilt
-buses-jouley-selected-for-2019-12-17/
Avista Corp. 29
Also, the elimination of idling (less exhaust and noise)
may be desirable benefits for certain applications. For
similar reasons, truck stop and refrigerated trailer
electrification may grow substantially over the next
decade, and may be appropriate areas for extending
utility fleet support programs in the future.
Other Technologies
and Market Opportunities
Vehicle-Grid integration. Eventually, OEMs may
deliver viable electrified vehicles and systems that go
beyond basic transport needs, such as providing grid
benefits in the form of emergency back-up power to
homes (V2H) or commercial buildlings (V2B), and
possibly even bi-directional power transfer known as full
vehicle-to-grid (V2G) capability, economically deployed at
scale. Combined with advanced software platforms,
hardware and standards enabling efficient transactions
and holistic management of local distributed energy
resources (DERs), energy storage, and other flexible
power demands, a much more resilient and integrated
grid of the future could be realized.
Micro-mobility or “last mile” innovations such as the
Lime electric scooters and bicycles could continue to
grow, providing a good opportunity to partner with local
government in reducing traffic congestion and local air
pollution.
R&D associated with aircraft, rail and marine electrifica-
tion is also on the rise, with longer timeframes anticipated
for commercial deployments. However, these areas may
also present a good opportunity for a pilot test in the 2025
–2030 timeframe. For example, smaller electrified
passenger aircraft may help expand regional air
transportation, relieve traffic congestion at larger hub
airports, improve travel times and costs, and reduce
pollution from air transportation before the end of the
decade.35 In this area, Avista has been involved with the
Washington State Electric Aircraft Working Group and will
continue to monitor developments and provide support as
requested.
Although significant technical and economic hurdles
remain, hydrogen could eventually be used as a viable
fuel alternative for EVs such that overall emission
reductions are feasible, particularly for fleets and medium
- to heavy-duty applications such as long-haul freight
transport, as advocated by the Renewable Hydrogen
Alliance (see www.renewableh2.org/resources). Similar
to other technical areas of interest, Avista will monitor
developments in this area and develop pilot demonstra-
tions when appropriate, primarily on the basis of technical
and TCO feasibility.
35 “Washington State Electric Aircraft Working Group Report.”
Washington State Department of Transportation (2019).
Figure 12: Home or building area network integrated with the grid (Society of Automotive Engineers, SAE J2836/1)
Avista Corp. 30
Finally, large global investments in autonomous electric
vehicles (A-EVs) may eventually result in profound
disruptions in the transportation sector. AVs are present
today in limited applications. However, a number of
major challenges remain to achieve fully autonomous
(Level IV and V) vehicles, including advanced sensors,
communications and artificial intelligence capabilities,
which can reliably perform in the full spectrum of
operational conditions. If successful, fully autonomous A-
EVs could dramatically change the way we carry out our
daily lives—reducing vehicle ownership, freeing up
personal time, conserving energy, and avoiding major
human injuries and fatalities, all while significantly
reducing transportation costs.36,37 In this area, Avista will
continue to monitor developments, including participation
in the Autonomous Vehicle Workgroup in Washington
State, and providing support as requested.
36 Arbib, J. and Seba, T. “Rethinking Transportation 2020 – 2030: The
Disruption of Transportation and the Collapse of the Internal-
Combustion Vehicle and Oil Industries.” Rethink X (2017).
37 “Autonomous Vehicle Work Group 2019 Annual Report.” Washington
State Transportation Commission (2019).
Avista Corp. 31
Environmental, Economic and
Grid Impacts
The transportation sector distinguishes itself in that it
uses petroleum as a nearly exclusive source of energy,
and has the highest rejected energy to useful energy ratio
of all major sectors of the economy. As a result, a very
high percentage of overall air pollution and greenhouse
gas emissions (GGEs) originate from transportation. This
is depicted in the following illustration, showing overall
energy sources and consumption in the U.S. economy.
In the Pacific Northwest, hydropower is readily abundant and used to a large extent for electric generation. Avista’s generation mix comes from a number of resources,
mostly hydropower for base load and natural gas during times of peak demand. These relatively clean sources of
energy result in 565 lbs CO2 emissions per MWh and about an 80% reduction in air pollution and GGEs for electrically powered transportation in our area compared
to petroleum-fueled transportation. As coal is phased out and more renewables are added to the generation mix, emissions from electricity generation may be reduced
even further.
Overall, given that close to 50% of CO2 emissions originate from the transportation sector in the Pacific
Northwest, transportation electrification may be the most impactful of all efforts in reducing GGEs in the region.
Figure 13: U.S. energy consumption - the transportation sector is powered almost exclusively by petroleum, with a high percentage of
rejected energy (source: Lawrence Livermore National Laboratory)
Avista Corp. 32
But how might transportation electrification affect the
utility grid? Can the utility keep pace with this new
demand and extend benefits to all customers? These
questions are explored below, starting with a basic
introduction to the electric utility grid.
The grid is delineated by three major systems –
generation, transmission, and distribution. On Avista’s
grid, generation power is stepped up to high AC voltages
of 115kV or more, traveling long distances on the
transmission system before the voltage is stepped down
in distribution substations, typically to 13.5kV using
30MVA transformers. Each substation commonly has one
to three feeder distribution lines that each usually run 3 to
5 miles in urban areas and 15 to 20 miles in rural areas.
Power is distributed on these feeders from the substation
to service transformers that step down voltage again and
supply one or more service points, which are defined as
the connection point at the customer meter. Most service
transformers on Avista’s system serve one to ten service
points in residential neighborhoods, with an average of
four.
Modeling by E3 for the Pacific Northwest region and
independently by Avista for its service territory indicates
that light-duty EV adoption at baseline or higher levels
over the next 20 years will provide net benefits over
costs, in terms of both regional economic and utility
customer perspectives. Regional economic benefits are
mostly due to the major fuel savings of EVs. Both
regional and utility customer costs are dominated by the
additional generation capacity required to serve new EV
loads, compared to very small distribution costs. No
impact is expected on the transmission system due to
EVs in the foreseeable future. The analysis that follows
includes details of distribution grid impacts, the results of
E3’s Pacific Northwest economic modeling, and Avista’s
economic modeling.
Distribution Grid Impacts
A first-order analysis of light-duty EV loads on distribution
transformers was conducted for three different scenarios.
The first scenario assumed a single EV load of 6.6kW
serviced by each transformer in addition to existing loads,
which equates to a roughly 25% EV adoption rate. The
second scenario assumed 50% of service points with an
added EV load of 6.6kW, and the third with 100%.
The electrical power demand on a service transformer
from EVs is modeled as:
PEV_aggregate = nEV * EVSE * CF
Where:
PEV_aggregate = Additional power demand created
by simultaneous EV charging
nEV = Number of EVs downstream of a given
service transformer
EVSE = Power required to charge a single EV =
6.6 kW
CF = Coincidence factor = 0 to 1
The CF is the percentage of simultaneous EV loads on a
given transformer compared to the sum of all potential
loads. As more EVs are served by a single transformer,
the maximum load on the transformer increases up to a
limit governed by the CF. The CF curves used for
transformer loading are based on industry and utility
Figure 14: Utility grid generation, transmission, and distribution systems (source: USDOE)
Peak Native Load 1,716 MW
Total Generation Capability 1,858 MW
Circuit miles of Transmission Lines 2,770
# of Distribution Substations 170
Circuit Miles of Distribution Feeders 5,429
# of Service Transformers 88,783
# of Retail Electric Meters 384,838
Annual kWh per Residential Customer 10,658
Table 3: Quick facts about Avista's electric grid
Avista Corp. 33
standards, and are directly related to the number of
service points with EVs served by the transformer.
Estimated transformer replacement costs of $3,516 for
underground transformers and $2,318 for overhead
transformers include material and labor costs but do not
include additional costs such as replacing or installing
new pole arms, cutouts, arrestors, brackets or upsized
distribution poles which may occur depending on the
situation.
In the first scenario, a single EV load of 6.6 kW during
peak hours was appended to each transformer’s existing
peak load, for 88,783 transformers sized between 15 to
100 kVA, each with 10 or fewer service points. A single
EV served by each transformer is equivalent to an overall
EV adoption rate of 23% of vehicles in service (as
distinguished from the percentage of sales). As a result of
this load, which represents a high adoption level
forecasted to occur many years after 2030 even in a high-
adoption scenario, only 5.9% (5,280 of 88,783) of
residential transformers exceeded their overloading limits
as determined by IEEE Std C57.91.38
In the second and third scenarios, applying EV loads to
50% of service points on all transformers caused the
peak load to exceed the failure threshold on 19.7% of
transformers, compared to a 30% failure rate for the
scenario with 100% EV service points. Upgrade costs for
the 50% and 100% adoption scenarios were $46.9 million
and $72.6 million, respectively.
Note that unusual situations that could alter charging
behavior were not modeled. For example, a higher level
of EV charging might occur before a major storm if
customers felt there was a risk of pending power outages,
which could cause additional transformer overloads and
failures. Also, it was assumed that only one EV will
charge at a time at a given residence, even though at
high EV adoption rates many households would have
more than one EV, and some of them may choose to
install multiple EVSE so that both EVs could charge
simultaneously.
Feeders are typically designed and built with 10 MVA
capacity, ideally operating at 6 MVA with overload
concerns at 8 MVA. Assuming uninfluenced EV load
profiles, first-order analysis of a sample of Avista’s
38 IEEE C57.91-2011 – Guide for Loading Transformers and Step-
Voltage Regulators. https://standards.ieee.org/standard/C57_91-
2011.html
Figure 15: EV charging coincidence factor used in economic modeling
Figure 16: Failure rate of residential transformers from EV loads
Figure 17: Distribution feeder overloads from EV loads, assuming all other loads held constant
Avista Corp. 34
feeders showed 33% were
overloaded, assuming baseline EV
adoption and all other existing loads
held constant, rising to 47%
overloaded with 50% EV adoption,
and 67% with 100% adoption.
Reconductor costs for urban feeders
average $400k per mile, compared
to $300k per mile for rural feeders.
In turn, impacts to feeders can result
in impacts to substations, with the
need to increase the number of
feeders, or in some cases, build a
new substation at an average cost of
$2.5 million per substation.
Note that second-order effects
arising from the system’s ability to
“backfeed” distribution feeders in the
event of issues and repairs is very
important in determining actual
overloads and projected costs,
which requires a more sophisticated
level of modeling. In addition,
detailed information at many points
in the distribution system for existing
loads and forecasts are needed to
project feeder and substation
impacts from EVs with more
certainty.
Based on analysis of detailed feeder
-level data for four utilities in the
Pacific Northwest, E3’s study
showed an average distribution cost
of $27 net present value (NPV) per
EV over the 20-year timeframe from
2017 to 2036. In other words, an
NPV of $27 represents the total
additional costs to the distribution
system over the 20-year time-frame
of the study for each EV during that
time. Avista’s independent analysis
indicates an average distribution
cost of $38 NPV per EV over a
similar 2019-2038 time period. In
both studies, similar assumptions
were used for baseline EV adoption,
EV purchase costs, fuel costs, etc.
However, the model’s calculation
methods and algorithms were
developed independently. Please
see the EVSE pilot final report for
more details on modeling
assumptions.
The relatively low EV impacts on the
distribution grid as predicted by both
models reflect the assumptions of
modest baseline EV adoption and
reduced distribution peak loads as a
result of ongoing energy efficiency
and conservation of other loads on
the system.39,40 Higher levels of EV
adoption and the sensitivity to
energy conservation assumptions
could be further explored, as well as
important second-order effects on
the distribution system beyond a first
-order analysis.
E3’s Pacific
Northwest EV
Study (2017 – 2036)
In 2017, E3 completed a detailed
study of EV grid and economic
impacts in the Pacific Northwest,
sponsored by six regional utilities.
The study‘s objectives were to
support an understanding of how EV
adoption could result in costs and
benefits from both a “regional” and a
“utility customer” perspective,
sensitivity to assumptions, the value
of managed charging, CO2
reductions, and implications for
utility planning. In the “regional”
perspective, monetized EV costs
and benefits that flow in and out of
the region are considered, while in
the “utility customer” perspective the
marginal EV costs and benefits are
isolated to the effects on customer
utility rates. Over the study’s 20-year
time horizon, calculated cash flows
for each year are translated to an
equivalent net present value (NPV)
in 2017, using a discount rate of
4.9%. When the NPV of total costs
is less than the NPV of total benefits
for a given scenario, a net benefit
results, and vice versa.
39 E3 (p.54).
40 Avista Electric Integrated Resource Plan
(2017).
Figure 18: E3 Regional Cost-Benefit
Avista Corp. 35
Utility costs associated with investments in transportation
electrification and load management are not included in
these analyses. For more detail including the analytical
approach, input variables, and how they are applied in
the regional and ratepayer perspectives, please see the
E3 report and the EVSE pilot final report.
From a regional perspective, E3 concluded that all
regions in the Pacific Northwest showed a net benefit
from EV adoption, calculated at $1,941 NPV per EV for
the regional base case scenario. These net benefits were
also shown to be most strongly influenced by assump-
tions of EV adoption, EV purchase costs relative to
gasoline vehicles, and gasoline prices. These
assumptions result in the largest cost component of
incremental vehicle cost, and the largest benefit
component of gasoline fuel savings. The analysis further
showed that generation capacity cost was nearly equal to
energy cost, and distribution costs were insignificant.
When examining the benefits of managed charging, E3
estimated an additional $500 to $1,700 regional net
benefit per EV, with 70% to 90% of the added value from
reduced generation capacity costs and the smaller
remainder from energy cost savings. Note that the E3
model is linear and therefore does not include important
“interactive” or dynamic second-order effects between
input variables (i.e. feedback loops). For example, lower
EV purchase costs and higher gas prices would result in
higher EV adoption, and vice versa, which greatly affects
the cost-benefit result. In reality, these feedback loops
are asymmetric in that negative effects such as utility
energy and generation capacity costs are mitigated by
lower EV adoption, while positive effects such as the
benefits of gasoline fuel savings are amplified by higher
adoption.
In the “utility customer” perspective, E3 showed that EV
adoption would create net benefits for the Pacific
Northwest overall, but that results could vary in sub-
regions depending mostly on the particular utility’s
reserve generation capacity. Wholesale electricity prices
were also found to have a significant influence on net
results, as they impact generation capacity cost. Utility
revenue from the additional metered billing of EVs results
in a net benefit over total costs of $387 NPV per EV.
When considering the potential value of managed
charging, E3 calculated an additional NPV of $400 to
$1,600 per EV as a result of reducing EV loads that occur
during “peak” hours, causing increased generation
capacity costs. Distribution costs were insignificant in
both cases, as modeled in the base case adoption
scenario from 2017 through 2036.
Figure 19: E3 Utility Customer Cost-Benefit
Avista Corp. 36
Avista’s Study
(2019 – 2038)
Following E3’s study for the Pacific
Northwest, Avista independently
developed an economic model that
would also calculate EV costs and
benefits for the regional and utility
customer perspectives, but specific
to Avista’s grid and service
territories, and with the flexibility to
alter inputs such as the EV load
profiles gathered from the EVSE
pilot.
E3 was consulted to confirm input
variables over a 20-year time
horizon for the Avista model,
analogous with the baseline input
variables used in E3’s Pacific
Northwest EV study where EVs
reach 15% of light-duty vehicle sales
in 2030. A financial discount rate of
6.58% was used to model Avista’s
weighted cost of capital.
In this way, Avista’s results may be
compared to E3’s using similar
inputs and independent modeling
methods. If the model outputs are
reasonably matched, then a form of
independent replication is achieved,
establishing additional confidence in
both E3’s and Avista’s modeling and
results.
In the regional perspective, Avista’s
model results in a net benefit of
$1,661 per EV without managed
charging, comparable to the E3
result of $1,941 per EV for the
Pacific Northwest region. Note that
in Avista’s model, costs for
renewable portfolio standards (RPS)
and electric carbon cost and
ancillary services (A/S) are not
considered, as they were shown to
be negligible in E3s results. Similar
to the E3 study, Avista’s regional
results are dominated by
incremental EV costs and fuel
savings benefits. In addition to the
embedded utility energy costs
consistent with Avista’s IRP
assumptions, additional utility costs
to serve the new EV loads come
primarily from generation capacity
costs at $648 per EV, with only $38
per EV from distribution costs. Note
that while they are tangible and
important benefits to the region, this
study does not include a monetized
value for societal and health benefits
resulting from reduced GGE
emissions and local air pollutants.
When managed charging is
included, regional net benefits
increase $464 per EV to a total
benefit of $2,125 per EV. This
assumed 75% of the residential
peak load was shifted to off-peak
from the hours of 4pm to 8pm year
round, as was demonstrated in the
EVSE pilot. Most of the additional
benefit comes from reduced
generation capacity costs. This is
comparable but slightly below the
range of E3’s regional net benefit
from managed charging at $500 to
$1,700 additional benefit per EV.
Additional benefits in the Avista
model could be realized with more
peak load shifting, as may be
possible. Nominally divided by an
assumed 10-year life of an EV,
these results mean that the cost to
implement load management per EV
over the model’s 20-year timeframe
must be less than $46 per year
using Avista’s result, or between $50
and $170 per year using E3’s
results, in order to achieve additional
regional net benefits from managed
charging.
Figure 20: Regional perspective costs and benefits per EV without managed charging 2019-2038
Avista Corp. 37
Using Avista’s model for the utility customer perspective
baseline scenario without managed charging, a net
benefit of $1,206 per vehicle is realized, significantly
higher than E3’s result of $387 per vehicle. This is due
mostly to the lower generation capacity costs in Avista’s
model, where Avista is long on generation capacity until
2027.
Figure 21: Utility customer perspective costs and benefits per EV without managed charging 2019-2038
Figure 22: Utility customer pers[ective costs and benefits per EV with managed charging 2019-2038
Avista Corp. 38
Considering the utility customer perspective with
managed charging, Avista’s model results in additional
net benefits of $463 per EV. Again, this is mostly due to
reduced costs of generation capacity, assuming 75%
reduction of residential peak loads from 4pm to 8pm.
Given the assumed 10-year service life of EVs, actual
costs to implement load management would reduce the
net benefit, and would need to be less than $46 per EV
per year to result in a net benefit increase. Note that
similar cost reductions from shifting on– to off-peak loads
by using a TOU rate, must also incorporate reductions in
beneficial utility revenue to arrive at net cost-benefits.
In summary, this analysis indicates that grid impacts from
light-duty EVs are very manageable over at least the next
decade, net economic benefits can extend to all
customers (not just to those driving EVs), and significant
reductions of greenhouse gas emissions (GGE) and other
harmful air pollutants may be achieved with electric
transportation. Significant additional benefits may be
realized by shifting peak loads in the longer term with
higher EV adoption, probably through a combination of
TOU rate design and effective load-management
programs. However, results also show that the costs to
implement load management must be on the order of $50
to $150 per EV, per year, in order to result in additional
net benefits over at least the next decade. Beyond this
timeframe as EVs represent 30% or more of vehicles on
the road, the impacts of peak load could become more
significant, making effective load management more
important. Therefore, it is prudent for the utility to
continue developing load-management capabilities in
order to cost-effectively mitigate EV peak loads and
resultant costs in the future.
This analysis represents a good start in the evaluation of
long-term environmental, economic and grid impacts.
Further monitoring, data collection and analysis will refine
and adjust estimates as the market, technologies and the
grid evolve, including utility costs to utilize more
renewables and more detailed modeling of distribution
impacts resulting from localized clustering effects.
Please note that the economic models presented in this
section of the TEP are intended for informational
purposes only (not as a litmus test for utility programs),
and do not include environmental benefits or utility
expenses supporting transportation electrification. The
next section on Costs and Benefits more closely
evaluates utility expenses and revenues over the 2020–
2030 timeframe including utility investments according to
the TEP, and the estimated impacts on annual revenue
requirements.
Avista Corp. 39
Costs and Benefits
This section provides estimates of
Avista’s costs to implement the TEP,
and benefits in the form of utility
revenues from EV charging, net of
expenses to generate and deliver
electricity. Benefits are also
summarized for customer
transportation cost savings and
avoided CO2 emissions.
Table 4 below lists the estimated cost of capital investments, allowed
capital return, and O&M expenses to implement the TEP over the next ten years. This follows from the strategy
and approach explained in previous sections, where a baseline level of supporting programs ramp up
initially to match an expected market
transition in the 2023-2024 timeframe, leading to stronger EV adoption thereafter and supporting
program growth of approximately 15% per year from 2023 through 2030.
Please note that these figures are estimates and will vary from actuals depending on a number of factors
including regular program adjustments to market conditions such as EV adoption, customer
participation rates and 3rd party private investments; with higher uncertainty as estimates are
projected further in the future.
Calculations assume an 8.18% rate of return on capital investments
based on a weighted cost of capital that includes the allowed 2% incentive rate of return on equity,
and cost recovery of capital investments amortized over the 10-year depreciable life of EVSE.
This is further detailed in the analysis that follows, along with costs to generate and deliver
energy, revenues from EV charging, and the resulting net revenue requirement which may not exceed
0.25% of annual revenue requirement for electric customers in Washington State.
Table 4: Estimated TEP costs from Avista capital investments and O&M expenses in Washington State (2021-2030)
Year Capital Investments
Allowed Capital Investment Return
O&M Expenses
2021 $2,250,000 $245,400 $650,000
2022 $2,887,500 $535,790 $747,500
2023 $3,620,625 $874,647 $859,625
2024 $4,163,719 $1,233,247 $988,569
2025 $4,788,277 $1,614,555 $1,136,854
2026 $5,506,518 $2,126,422 $1,307,382
2027 $6,332,496 $2,788,434 $1,503,489
2028 $6,332,496 $3,519,512 $1,653,838
2029 $7,282,370 $4,423,257 $1,819,222
2030 $8,374,726 $5,525,567 $2,001,145
Totals $51,538,726 $22,886,830 $12,667,625
Avista Corp. 40
Table 5 shows the avoided cost of
new resources according to the
2020 Integrated Resource Plan
(IRP). These costs represent the
average incremental energy and
capacity cost to serve Avista
customers. The costs include energy
and capacity for serving load at time
of peak. This shows that starting in
2026, projected capacity will be
short of demand and will at that
point incur additional costs starting
at $108/kW-year. In addition, the
“clean premium” is the estimated
incremental cost to comply with the
Clean Energy Transformation Act
(CETA) in Washington, starting in
2022. A full description of these
costs is found in the 2020 IRP,
pages 11-20 to 11-24.41 This table is
included in the IRP to estimate
avoided cost for analysis of
resources between IRPs and
provide guidance for pricing power
contracts under the Public Utility
Regulatory Policy Act (PURPA). The
assumptions used to estimate these
costs are described in the IRP
document, and are largely driven by
the wholesale electric market
forecast, the cost of new generation,
and the timing of Avista resource
needs.
From these values, utility costs to
generate and deliver electricity used
for EV charging may be derived,
given EV load profile data obtained
from the EVSE pilot. In addition,
benefits in the form of net utility
revenues may be calculated based
on the estimated number of EV
customers each year, as well as
customer fuel and maintenance
savings and avoided CO2 emissions.
These calculations are shown in the
tables that follow, assuming
separate baseline and high adoption
scenarios in Washington for light-
duty passenger EVs only. Values
are shown for the estimated number
of registered EVs owned and
operated by Avista’s electric
customers in Washington. In the
future, additional benefits from load
management, any monetized
environmental benefits that may
become available, and separate
treatment for EV customers in Idaho
will also be included.
Over time as more information is
gathered, this analysis may be
supplemented by additional cost and
benefit estimates from other
transportation electrification loads
such as transit buses, lift trucks and
other market segments.
41 see www.myavista.com/IRP
Table 5: 2020 IRP energy costs
Year
Energy
Flat
(MWh)
Energy
On-Peak
(MWh)
Energy
Off-Peak
(MWh)
Clean
Premium
(MWh)
Capacity
($/kW-Yr)
2021 19.67 22.64 15.71 0.00 0.0
2022 19.98 22.75 16.28 11.75 0.0
2023 20.44 23.05 16.98 11.99 0.0
2024 21.61 24.09 18.28 12.23 0.0
2025 22.76 25.19 19.50 12.47 0.0
2026 24.27 26.40 21.43 12.72 107.7
2027 23.57 25.27 21.30 12.97 109.9
2028 25.02 26.26 23.35 13.23 112.1
2029 25.92 26.80 24.73 13.50 114.3
2030 26.72 27.08 26.25 13.77 116.6
Avista Corp. 41
Note that coincident peak demand at
6pm in January is the governing
peak for the year, which drives
system generation capacity and
delivery costs to meet maximum
peak demand. Please also note that
these calculations are derived from
the uninfluenced average load
profile obtained from EVSE pilot
data from 2017–2019. In the future,
EV load profiles may increase both
in total energy consumed and in
peak demand per EV as the market
trends toward a larger proportion of
EVs with larger battery packs. On
the other hand, peak loads may be
mitigated by a combination of
residential TOU rates, as well as
effective load management
programs. Avoided emissions per
EV currently stands at 4 tons CO2
per year, given an electricity
generation mix producing 565 lbs of
CO2 per MWh. This should improve
over time beyond what is stated
below as coal generation is
eliminated and more renewables are
used to generate electricity.
3,153 kWh electric energy consumption
0.78 kW coincident peak demand at 6 pm in January
$304 utility billing revenue
$1,183 customer fuel cost savings
$300 customer maintenance cost savings
4 tons avoided CO2 emissions
Table 6: Key characteristics per light-duty EV (average annual figures)
Table 7: Baseline EV adoption— annual costs and benefits for Avista Washington customers
Year # EVs (WA) Utility Billing Revenue
kWh coincident kW (January 6pm)
Utility Generation and Delivery Cost
Net Revenue (Offsetting Benefit)
Avoided CO2 Emis-sions (Tons)
Customer Transportation Fuel and Maintenance Savings
2021 1,605 $487,814 5,059,470 1,252 $99,534 $388,281 6,419 $2,379,700
2022 2,104 $639,530 6,633,019 1,641 $132,530 $507,000 8,415 $3,119,812
2023 2,737 $831,997 8,629,227 2,135 $176,384 $655,613 10,947 $4,058,720
2024 3,604 $1,095,637 11,363,632 2,811 $245,540 $850,097 14,416 $5,344,835
2025 4,811 $1,462,652 15,170,208 3,753 $345,272 $1,117,380 19,245 $7,135,242
2026 6,504 $1,977,097 20,505,880 5,073 $1,044,235 $932,862 26,014 $9,644,853
2027 8,868 $2,695,754 27,959,585 6,917 $1,418,903 $1,276,851 35,470 $13,150,670
2028 12,135 $3,689,051 38,261,765 9,465 $2,017,956 $1,671,094 48,540 $17,996,257
2029 16,411 $4,988,922 51,743,650 12,801 $2,804,287 $2,184,634 65,644 $24,337,404
2030 21,760 $6,615,031 68,609,191 16,973 $3,812,173 $2,802,859 87,040 $32,270,038
Avista Corp. 42
From these values and estimates for utility capital
investments in transportation electrification (TE), revenue
requirements may be calculated and compared against
the 0.25% annual revenue requirement limit. These
calculations assume an 8.18% rate of return based on a
weighted cost of capital including the 2% incentive rate of
return on equity authorized in Washington for capital
investments in Transportation Electrification. For
purposes of meeting the 0.25% limit as defined by law,
capital investment depreciation and allowed return on
capital investment, including the incentive rate of return
on equity, are included in the revenue requirement
calculation for each year, but O&M expenses are not.42
The Company recognizes that additional TE capital
investments that do not receive the incentive rate of
return could be pursued; however, such additional
investments are not proposed at this time.
Assuming that strong utility support and OEM product
results in a transition from baseline to high adoption
starting in 2023, corresponding net revenue requirements
(RevReq) from TE investments remain under the 0.25%
limit for all years in the 10-year timeframe, as shown in
the Table 9 below. Actual adoption levels will be regularly
monitored with spending adjustments as required to
remain under the 0.25% limit.
42 Revised Code of Washington (RCW) 80.28.360 (1)
Table 8: High EV adoption— annual costs and benefits for Avista Washington customers
Year # EVs (WA) Utility Billing Revenue
kWh Coinci-dent kW (January 6pm)
Utility Generation and Delivery Cost
Net Revenue Offsetting Benefit
Avoided CO2 Emis-sions (Tons)
Customer Transporta-tion Fuel and Maintenance Savings
2021 1,678 $510,178 5,291,422 1,309 $104,097 $406,081 6,713 $2,488,798
2022 2,311 $702,678 7,287,975 1,803 $145,615 $557,063 9,246 $3,427,868
2023 3,115 $946,884 9,820,809 2,430 $200,738 $746,146 12,459 $4,619,175
2024 4,262 $1,295,610 13,437,696 3,324 $290,353 $1,005,257 17,048 $6,320,363
2025 5,958 $1,811,376 18,787,072 4,648 $427,589 $1,383,788 23,834 $8,836,419
2026 8,468 $2,574,194 26,698,798 6,605 $1,359,597 $1,214,597 33,871 $12,557,665
2027 12,179 $3,702,402 38,400,242 9,500 $1,948,744 $1,753,658 48,716 $18,061,389
2028 17,857 $5,428,560 56,303,451 13,929 $2,969,483 $2,459,077 71,428 $26,482,086
2029 26,545 $8,069,581 83,695,360 20,705 $4,535,926 $3,533,655 106,179 $39,365,753
2030 40,454 $12,298,165 127,553,008 31,555 $7,087,290 $5,210,875 161,818 $59,994,009
Avista Corp. 43
At higher adoption levels beyond 2030, additional
distribution costs in the form of service transformer and
feeder upgrades may also become more apparent, at a
level of significance to include with the figures indicated
above. If updated modeling in future TEP revisions
indicates material distribution costs prior to 2013, these
will be included in updated cost projections.
Again, these estimates represent only light-duty EVs, with
cost estimates and assumptions that are subject to
uncertainty. Actual costs and benefits will vary depending
on market conditions and commensurate adjustments to
program spending. Costs and benefits from other market
segments beyond light-duty EVs (e.g. commercial
delivery vehicles and transit buses) are also expected
and will be included in future updates to the TEP as more
information and experience is gained in these areas.
Table 9: Net revenue requirement from capital investments in transportation electrification compared to the 0.25% annual limit
Year Capital Investments
TE RevReq without Offsetting Benefits
Offsetting Utility Customer Benefits
TE RevReq after Offsetting Benefits
TE Incremental % RevReq with Offsetting Benefits
0.25% WA Electric Revenue Requirement Limit
2021 $2,250,000 $482,400 $388,281 $94,119 0.02% $1,373,963
2022 $2,887,500 $839,940 $507,000 $332,940 0.06% $1,422,051
2023 $3,620,625 $1,256,019 $655,613 $600,406 0.10% $1,471,823
2024 $4,163,719 $1,671,826 $927,677 $744,149 0.12% $1,523,337
2025 $4,788,277 $2,118,920 $1,250,584 $868,336 0.14% $1,576,654
2026 $5,506,518 $2,706,442 $1,214,597 $1,491,845 0.23% $1,631,836
2027 $6,332,496 $3,455,457 $1,753,658 $1,701,799 0.25% $1,688,951
2028 $6,332,496 $4,186,535 $2,459,077 $1,727,458 0.25% $1,748,064
2029 $7,282,370 $5,190,333 $3,533,655 $1,656,678 0.23% $1,809,246
2030 $8,374,726 $6,407,705 $5,210,875 $1,196,830 0.16% $1,872,570
Avista Corp. 44
Analysis and
Reporting
This Plan will be updated and reissued in five-year
increments, starting in 2025. New program filings may be
submitted for regulatory review on an on-going basis and
later incorporated in regular revisions of the TEP.
Summary year-end updates will be provided for 2021 and
2023 focusing on expenses, revenues and high-level
program results. A more comprehensive mid-period
report will be provided in early 2023 including updates on
EV adoption and forecasts; program activities; lessons
learned; and adjustments. Detailed reporting will also be
included with the updated TEP submitted by year-end
2025, along with modeled impacts on the environment,
the economy and the grid, incorporating detailed
assessment of energy, capacity, and distribution system
impacts.
Key metrics and other information will be monitored and
reported, including:
1. Customer satisfaction
2. Number of EVs by type (light passenger, forklifts,
buses, etc.) in Washington and Idaho service
territories
3. Adoption projections
4. Customer operating cost savings and avoided CO2
emissions
5. EV load profiles for cases of uninfluenced, load
management and TOU rates
6. Electric consumption (kWh) and peak load (kW)
7. Grid impacts integrated with System Planning
including Distribution systems and the Integrated
Resource Plan
8. EVSE installations, costs and % uptime
9. EV TOU rate participation and results
10. Utility spending, revenue and net benefits, including
any monetized environmental benefits and grid
benefits from load management
Avista Corp. 45
Programs
and Activities
EVSE Installations and Maintenance
In support of light-duty EV adoption, the measured
buildout of EVSE infrastructure is a top priority, especially
in workplace, fleet and public DC fast charging (DCFC)
sites. This is because of the powerful support for adoption
and inherent grid benefits that workplace and fleet
charging provide, and the increasing need for public
DCFC as the light-duty market develops.
In addition to public DCFC and AC Level 2, workplace
and fleet, Avista’s EVSE portfolio is rounded out by
residential and MUD programs that support adoption,
dealer engagement and equitable access to EVSE.
Residential programs lay a critical foundation for effective
load management and grid benefits in locations where
the large majority of EV charging is expected to occur in
the future.
Avista can play an essential role to ensure that the right
type and amount of charging infrastructure is in good
working order, in the right place and at the right time,
relative to market needs. This is absolutely critical to
enable unimpeded, beneficial market growth. EVSE
buildout must be accomplished with a cost-effective
portfolio approach, utilizing low-cost and reliable non-
networked EVSE where possible, and scaling with market
conditions over time so that adequate supporting
infrastructure is in place as the market grows, while
avoiding over-investment.
In addition to Avista ownership of EVSE, third-party
ownership is encouraged with supportive utility policies,
including “make-ready” options and a pilot commercial EV
rate applying time-of-use (TOU) energy charges. Ideally,
third-party ownership will make up 50% or more of all
EVSE installations. “Make-ready” options are available to
commercial customers that wish to own and operate
EVSE themselves, or act as a site host for other third-
party ownership. Avista will install required infrastructure
to an agreed location for the meter connection, with the
utility investment limited to $20,000 per public DCFC site,
and $2,500 per commercial AC Level 2 port connection
intended for fleet, workplace, public or MUD primary
utilization, in addition to the servicing transformer. This
should cover the utility costs for most installations sited
reasonably close to required utility power, thereby
encouraging cost-effective installs. In these cases, the
customer agrees to maintain access and operability of the
EVSE for at least 10 years, and may charge a user fee at
their discretion. Avista will offer consultation on the user
fee to balance owner cost recovery and user
acceptance. Until conditions change to warrant
reconsideration, Avista will recommend applying the rate
of $0.35/kWh as set by the Washington UTC for DCFC
owned by Avista.
For details on the commercial EV TOU rate that also
supports third-party ownership of EVSE, please see the
Rate Design section.
EVSE uptime is of major importance to customer
satisfaction and mass adoption at > 99% per charging
site. Avista will work with industry partners and
contractors to achieve and maintain this performance
benchmark.
Avista Corp. 46
Public DCFC
Public DCFC will play an increasingly important role for
reliable and fast public charging of light duty vehicles, for
both longer distance and intra-city travel. Building upon
the success of the EVSE pilot, Avista will continue to
build out DCFC sites along major travel corridors and in
urban areas for public charging. This will be accom-
plished in partnership with local stakeholders and in
alignment with state agency guidance and the degree to
which EV adoption requires support, reviewed on an
annual basis. DCFC owned and maintained by Avista will
complement DCFC installed outside of Avista’s network,
in a coordinated way that avoids overlapping coverage
and appropriately supports EV adoption, while mitigating
the costs and risks of overbuilding too far ahead of
market needs and/or technology obsolescence and
stranded assets.
Prioritized locations for public DCFC sites will be made
through a deliberate process involving the WSDOT,
regional transportation planners, community leaders,
customer feedback, and other key stakeholder
collaboration. Siting identification and selections for public
EVSE will be prioritized according to assessed criteria
including cost, accessibility, low-income support, nearby
amenities, site host commitment, and utilization.
Reputable evaluation methods and tools for DCFC siting
prioritization will be considered and tailored for use as
appropriate, with stakeholder engagement.43
Benchmarks for adequate EVSE infrastructure by 2025
include DCFC sites along travel corridors every 40 miles,
and in prioritized urban locations for intra-city use at 1
DCFC port per 150 BEVs.44 Longer term, as markets
mature, this ratio may be increased to 1 DCFC port per
200 BEVs or more. Based on these benchmarks and
baseline EV adoption forecasts, Table 10 shows the
estimated DCFC infrastructure needed by 2025, when the
EV market is expected to have reached an inflection point
and a lack of public DC infrastructure would seriously
impede market growth. This is on the order of 60 new
DCFC sites, or 12 DCFC sites per year on average for
the five-year period from 2021 through 2025.
At an estimated total cost of $150,000 per DCFC site, this
equates to an investment of $1.8 million per year and a
total of $9 million over five years for 30 DCFC sites. In
comparison, Avista installed seven DCFC sites at an
average cost of $128,000 during the three-year EVSE
pilot from 2016 to 2019.
43 For example, see “Electric Program Investment Charge (EPIC) Final
Report.” Pacific Gas and Electric Company (2016).
44 See Nicholas, et all (p. 13), Wood, et al (p. xi), and “Considerations for
Corridor DCFC Infrastructure in California”, (p. 11).
Avista Corp. 47
Avista will plan to install 5 new DCFC sites in 2021
owned and maintained by the Company, ramping to 7
DCFC sites in 2022 and 9 sites in 2023 and 2024—a total
of 30 out of an estimated 60 required sites, or 50% of the
estimated market requirement by 2025. Plan adjustments
to the number of new sites and expansion of existing
sites will be made with stakeholder involvement, based
on annual evaluations of EV adoption, respective EVSE
market needs, and the number of DCFC installations
owned by third-parties. Ideally, third-party ownership
makes up 50% or more of the regional installations, with
the support of the “make-ready” policy and the pilot EV
TOU rate schedule used for public DCFC.
Effective buildout along major travel corridors including I-
90, I-95, US 395/195, US 2 and US 12 in Avista’s service
territory requires extending the initial DCFC network in
eastern Washington to target sites in Sprague, Clarkston,
Chewelah, Colville, Deer Park, Davenport, Airway
Heights, Cheney, south Spokane and Newport in
Washington, as well as Post Falls, Coeur d’Alene,
Sandpoint, Bonners Ferry, Spirit Lake, Hayden,
Rathdrum, Orofino and Grangeville in Idaho. Some of
these strategic locations are not served by Avista
electricity and will require investment by other
organizations and/or grant funding. The maps below
show existing DCFC and a preliminary DCFC buildout
plan along major travel corridors in the region and in the
Spokane metro area. Note that this is relative to higher
traffic patterns shown by red “heat” marks correlating with
greater than 25,000 average daily vehicle traffic, and
does not include DCFC sites available only to Tesla
vehicles.
Table 10: Projections for light-duty EVs in Avista's service territory and required DCFC in 2025
BEV PHEV Total EVs
EVs Owned by Avista Electric Customers
Corridor DCFC Sites
IntraCity DCFC Sites
Total DCFC Sites Needed by 2025
DCFC Installed as of 2019
New DCFC Required
by 2025
Washington 3,764 2,509 6,273 5,521 25 25 50 9 41
Idaho 1,129 923 2,052 1,313 13 8 21 1 20
Total 4,893 3,433 8,326 6,834 38 33 71 11 60
Avista Corp. 48
In more populated areas, DCFC
buildout is targeted at 1 DCFC site
per 150 BEVs registered in each zip
code, including DCFC sited at
locations supporting TNCs and high-
traffic locations, such as the
Spokane International airport and
major shopping centers. The map
below shows the EVSE buildout plan
for the Spokane metro area, as
developed with local leaders
including the Spokane Regional
Transportation Council, the City of
Spokane, Urbanova, and other local
leadership as part of the recent
grant application for the Clean
Energy Fund—Electrification of
Transportation Systems,
administered by the Washington
State Department of Commerce.
Figure 23: Preliminary DCFC buildout plan for regional travel corridors (2020-2024)
DCFC site under construction at Wandermere shopping center, in partnership with Washington
Trust Bank (2018)
Avista Corp. 49
DCFC sites should be “future proofed” where practical,
with additional capacity allowing for low-cost expansion
as EV demand grows. The illustration below shows
standard plans for the DCFC sites installed in the EVSE
pilot, allowing for low-cost expansion from 50 kW DCFC
to 150 kW DCFC and additional dispenser units and
parking stalls in two construction phases.
Figure 22: Preliminary Spokane metro area DCFC buildout plan (2021-2025)
Figure 24: Preliminary EVSE buildout plan for the Spokane Metro area (2021– 2024)
Figure 25: Standard DCFC site design for the EVSE pilot (2016—2019)
Avista Corp. 50
Standard DCFC installations in the EVSE pilot included a
dedicated 225kVA transformer, 50 kW DCFC and a dual-
port AC Level 2 backup EVSE in the first phase of
construction, serving four parking stalls. Additional
infrastructure capacity allows for low-cost expansion in
the second phase of construction with an additional 150
kW DCFC, up to three dispenser units, and four
additional parking stalls.
DCFC sites require both CHAdeMO and CCS-1 port
connections, allowing for all drivers with different DC port
connection standards to use the EVSE (Tesla drivers can
use the DCFC with a purchased adapter for the
CHAdeMO connector only in North America). DCFC
owned and maintained by Avista require a user fee,
currently set at $0.35/kWh in Washington State and
regulated by the Washington UTC. A property easement
or access agreement with the property owner is
necessary for DCFC sites for a period of at least 10 years
correlating with the estimated service life of the DCFC
equipment.
New standard DCFC site designs are in process,
incorporating the latest proven technologies and industry
best practices. A standard 1MW site plan is envisioned,
with two 175kW power dispensers installed in phase 1,
and expansion capacity to add two additional 350kW
power dispensers in Phase 2. Options beyond the
standard design include on-site solar power, energy
storage and micro-mobility charging. These options may
be pursued as a technology demonstration project with
local and industry partners.
All DCFC will meet network interoperability requirements
to help mitigate long-term operational risks, and will
include payment capability through credit-card readers so
that customers may easily and seamlessly access all
DCFC in the network without mandatory network
memberships or subscriptions.
For planning purposes through 2025, average cost for
standard DCFC site designs is estimated at $150,000 per
site, assuming DCFC power delivery at 150 kW or higher,
and 225 kVA to 1500 kVA transformer capacity
depending on site conditions.
Figure 26: Concept layout for 1 MW DCFC site with solar, energy storage, and micro-mobility options
Avista Corp. 51
Public AC Level 2
AC Level 2 EVSE are very different from DCFC. They
typically deliver less than 7.2 kW of power per port
compared to 50kW or more for DCFC, and as a result,
charging sessions are often much longer than the 30-
minute average charging sessions for DCFC. Installation
costs are also much lower, at an average of $12,000 per
public ACL2 site compared to $128,000 for DCFC in the
EVSE pilot.
The appropriate quantity of public AC Level 2 EVSE to
support the market over the next five years is
approximately one port per 25 EVs.45 Given an estimated
8,326 EVs in the region in 2025, this equates to 333 AC
Level 2 ports. Subtracting the 78 public ports currently
installed in the area yields 255 ports for buildout, or 51
ports per year on average over the five-year period from
2021–2025. Assuming an average of 2 ports per AC
Level 2 installation gives an estimate of roughly 25 new
public AC Level 2 sites needed per year.
Another helpful guideline for public AC Level 2 buildout is
related to the geographic distribution and coverage of
high-traffic site locations with available EVSE. Customer
feedback indicates that public AC Level 2 at all major
shopping centers and large grocery stores, as well as
major parks and other destinations, would be beneficial.
Public AC Level 2 EVSE spread throughout the area in
smaller rural towns could also provide a beneficial
charging network that enables regional EV trips where
the user intends to stop for several hours at a given
location. This may be accomplished at relatively low
installation cost compared to DCFC, and provides more
equitable access to EV charging for early adoption in
these areas.
Avista will plan to support up to 12 sites per year for
public AC Level 2 buildout in the region from 2021
through 2025 – roughly 50% of the estimated market
need. Application and selection rounds will be made each
year, involving local stakeholders including regional
transportation planners and community leaders. Selection
criteria will be based on factors including cost, access,
low-income support, geographic diversity, nearby driver
amenities, projected utilization and site-host commitment.
Avista will coordinate installations, covering 50% of
premises wiring installation costs up to a maximum of
$2,000 per port, similar to the installations completed in
the EVSE pilot. This amount may be reduced in the future
as market conditions change. Additional conduit allowing
for low-cost future expansion will be included where
practical.
Non-networked EVSE will be encouraged due to their
proven higher reliability and lower costs. However, some
site hosts may require the EVSE to transact a user fee or
collect data. In these cases, site hosts may choose from
networked EVSE certified as meeting interoperability
standards, but will be responsible for fees and
maintenance associated with the network service
provider (EVSP). Site hosts may also set the user fee at
their discretion, with consultation available from Avista
and the EVSP to set an appropriate fee in-line with other
fee-based EVSE in the market. Public EVSE applying
user fees should have credit card readers installed to
ensure convenient access by all users.
In the future, Avista may consider an EVSE lease and/or
rebate program, maintenance fees, and modifications to
“make-ready” offerings for commercial customers,
provided assurance that effective load management
development, EVSE access, reliability, and cost controls
may be achieved.
45 See Nicholas, et all (p. 13), and Wood, et al (p. xi) Public and workplace EVSE installed at a neighborhood shopping
center (2018)
Avista Corp. 52
Workplace, Fleet and MUD AC Level 2
Workplace, fleet and multiple-unit dwelling (MUD) EVSE
installations are critical to support adoption and provide
net grid benefits. Workplace charging in particular is of
major importance, as it has been shown to be a cost-
effective, powerful catalyst for EV adoption while reducing
amount of charging that would otherwise occur during
evening on-peak periods.
Avista will support EVSE installations in this category
owned and maintained by the utility, accepting customer
applications on a first-come, first-served basis subject to
eligibility requirements. Avista will cover 50% of premises
wiring costs up to a maximum of $2,000 per port, similar
to the installations completed in the EVSE pilot. This
amount may be reduced in the future as market
conditions change. The number of ports and configura-
tions are dependent on site-specific conditions, limited
according to the number of existing EVs that will utilize
the EVSE and assessments of near-term and long-term
adoption potential according to the size of the
organization and facility. Where feasible, additional
conduit will be installed enabling low-cost future
expansion.
Avista will offer a reliable and low-cost non-networked
EVSE, typically delivering between 3.3 kW and 7.2 kW
per port. In most cases, EVs in these locations may be
expected to charge for longer periods of time at lower
power levels. Off-peak charging will be maximized by
enrollment in load-management programs including
vehicle programming, non-networked programmable
EVSE and vehicle telematics. In all cases, the customer
agreement allows the utility to perform load management
where practical for workplace, fleet and MUD sites, and
the customer agrees to future application of TOU rates to
encourage off-peak charging. In most cases it is expected
that lower costs will result from utilizing available capacity
in existing supply panels; however, those sites with
segregated meter service to EV charging loads will be
eligible for the pilot EV TOU rate.
In the case of workplace, fleet or public installations, if the
customer desires a networked AC Level 2 EVSE that
enables user payments, they may choose from certified
EVSE that have passed interoperability and reliability
testing. The customer will be responsible for any EVSP
fees and maintenance, and may set the user fee at their
discretion with consultation available from Avista and the
EVSP, similar to public EVSE.
Alternatively, customers in these locations may choose to
own and operate their own AC Level 2 EVSE, or act as
site host for other third-party ownership. “Make-ready”
utility investments as previously described and a
commercial EV TOU rate are intended to help support
and encourage third-party ownership.
In the future, Avista may consider an EVSE lease and/or
rebate program, maintenance fees, and modifications to
“make-ready” offerings for commercial customers,
provided assurance that effective load management
development, EVSE access, reliability, and cost controls
may be achieved.
Workplace and Fleet EVSE installed for the City of Spokane (2019)
Avista Corp. 53
Residential AC Level 2
The residential EVSE program supports adoption and
dealer engagement, and provides a pathway to develop
cost-effective load management where the large majority
of charging will occur. Avista will support EVSE
installations in this category owned and maintained by the
utility, accepting customer applications on a first-come,
first-served basis subject to eligibility requirements. Avista
will cover 50% of premises wiring costs up to a maximum
of $1,000 per port, similar to the installations completed in
the EVSE pilot. This amount may be reduced in the future
as market conditions change.
For residential installations, a reliable and low-cost non-
networked EVSE is installed, with load management
achieved by programming the vehicle or the EVSE to
charge during off-peak hours. A smaller subset of
customers will be enrolled in telematics data collection
and load-management tests, which will allow for ongoing
load profile monitoring and new load-management
experiments communicating directly with the EV, rather
than through a networked EVSE.
Customers may select a certified EVSE of their choice but
will be responsible for any additional costs, including
EVSP fees that may apply. In all cases, customers agree
to participate in future TOU rates and replacement of the
EVSE at Avista’s discretion with new products enabling
robust load-management experimentation.
In the future, Avista may consider a lease and/or rebate
program offering, maintenance fees, and/or networked
EVSE utilizing AMI equipment for residential customers,
provided assurance that effective load management
development, reliability and cost controls may be
achieved. For at least the near term, the proposed
residential program achieves desired outcomes of greater
EV adoption, EVSE reliability, dealer engagement and
development of load-management capabilities and
benefits at least cost.
Residential EVSE installation with direct load management capability
via homeowner WiFi and the Greenlots network (2017)
Avista Corp. 54
Summary –
EVSE Installations
and Maintenance
45% budget target
> 99% EVSE uptime goal
Programs support both Avista and
third-party EVSE ownership, off-peak
charging, and customer choice
through “make-ready” options, load
management and a pilot EV TOU rate.
Coordinated public DCFC buildout,
prioritized and selected with stake-
holder engagement. Goal is to install
30 new sites owned by Avista by 2025,
with another 30 owned by third-
parties. Pilot EV TOU rate schedule
applied in all cases.
Public AC Level 2 selected with
stakeholder engagement at up to 12
sites per year. Avista covers 50% of
premises wiring costs up to $2,000 per
port, with EV TOU rate applicability.
Workplace, fleet and MUD installations
on a first-come, first served basis.
Avista covers 50% of premises wiring
costs up to $2,000 per port, with load-
management requirements and EV
TOU rate applicability.
Residential installations on a first-
come, first served basis. Avista covers
50% of premises wiring costs up to
$1,000 per port, with load-management
requirements and future EV TOU rate
applicability.
Avista Corp. 55
Education and Outreach
With respect to light-duty passenger vehicles, low
awareness of EVs continues to pose significant market
barriers for both residential and commercial customers.
This is exacerbated by a persistent lack of new and used
EV inventory, and generally low (although improving)
interest and engagement of auto dealerships. In 2019,
while most area dealerships carried minimal to zero EV
inventory, over 50% of EV sales in the region occurred
outside traditional dealer channels, through online sales
dominated by Tesla and other used EV sales between
private parties. While regional EV adoption rates have
increased considerably in recent years, EVs are still less
than 2% of new vehicle registrations – far short of
entering the mass market at the 15% level.
Customer surveys and interviews showed that Avista’s
efforts to provide objective information about EVs and
charging during the pilot were appreciated, with many
suggestions and encouragement to increase these efforts
in the future. Consultation with Plug-In America and
interviews with area dealerships showed that Avista’s
dealer referral and EVSE installation pilot programs were
well regarded and gaining traction in the dealer
community by the time these programs were concluded in
June of 2019. New and similar programs were universally
requested among interviewed dealers, along with a
strong desire to partner with Avista in the future to
increase customer awareness and EV adoption.
The customer purchase journey starts with awareness,
proceeding to the critical consideration stage, and closing
with the purchase decision. Beyond awareness,
customers often need trusted referrals and direct
experience with riding, driving and charging an EV to
overcome perception issues at the consideration stage
and make a good purchase decision. It is clear that as a
trusted energy advisor with strong customer relationships,
Avista is in a unique position to address awareness
issues—and to some degree, EV availability and
experiential opportunities—to help customers make well
informed transportation choices. This may be
accomplished in a variety of ways, including continued
customer support functions, new programs based on
proven pilot successes, strengthened partnerships with
dealerships, and exploration of new education and
outreach efforts as follows:
1. Provide supportive customer programs and engage
with automotive dealers, original equipment
manufacturers (OEMs), and local interest groups to
improve vehicle inventory levels, EV awareness and
demand, and the customer purchase experience.
This will include a $250 dealer referral per customer
(limited to 100 referrals per year); a program offering
installation of residential, fleet and workplace
charging subject to load-management requirements;
and periodic visits with area dealership management
and sales staff. Within budget constraints, the
Company plans to pursue EV education campaigns in
partnership with area dealers and local media
channels. Support and engagement of local peer-to-
peer interest groups leveraging social media may
provide the most effective results in terms of raising
Communications flyer for an EV Ride & Drive event
—in partnership with Kendall Yards and Forth (2018)
Communications flyer for an EV Ride & Drive event
— in partnership with Kendall Yards and Forth (2018)
Avista Corp. 56
public awareness and local demand for EVs.
Depending on the results of further research, Avista
may support informational kiosks, such as the
Chargeway Beacon at area dealerships, as well as
dealer EV training and certification programs.
2. Continue installs of public AC Level 2 EVSE across
Avista’s service territory, in partnership with local
government and businesses. This will help provide a
backbone of regional public charging infrastructure at
low cost, and at the same time increase education
and awareness due to public visibility and promotion,
as well as provide benefits to disadvantaged
individuals and communities in these areas.
3. Consider establishing an EV Experience Center in
the Spokane metro area, where the public could learn
in a hands-on environment about EVs, charging,
incentives and utility programs—similar in some
respects to the Forth showcase in Portland, Oregon.
This could conceivably be combined with a check-in
and check-out service for EVs available for rent
through Turo, a charging hub for EV drivers using
transportation network company (TNC) platforms
such as Uber and Lyft, and purchase of used and
new EVs in partnership with an experienced auto
broker and/or dealers. If successful, this could
provide substantially greater visibility and access to
local and more remote EV inventories, as well as
direct ordering channels, and effectively raise public
awareness on a larger scale. Collaboration,
partnerships and support from local organizations
and individuals is important to success.
4. Support EV drivers using transportation network
company (TNC) platforms such as Uber and Lyft. This
may include installation of DC fast charging stations at
key locations, reduced charging fees, and possibly
assistance with vehicle leases and/or financing, in
partnership with TNCs. This program could also be
leveraged to benefit disadvantaged communities and
individuals.
5. Continue customer support functions and activities in
the following areas:
a. Maintain Avista’s electric transportation
webpage with the latest information and
tools, including state and federal incentives,
utility programs, cost calculators, program
information and application links, and FAQs.
b. Promptly respond to customer inquiries via
phone calls and email through the call center,
with more experienced staff as needed for
more detailed questions involving vehicles
and equipment, charging options and
requirements, utility infrastructure, etc.
Increasingly, this may involve inquiries about
commercial fleet opportunities.
c. Support community events such as locally
sponsored EV ride and drives during National
Drive Electric Week.
d. Provide informative presentations in a variety
of forums, including community events and
meetings with local government, industry
groups and non-profit organizations, and
public webinars.
e. Promulgate important information about the
benefits of electric transportation through
various media channels, including earned
news and trade media interviews, social
media, bill inserts, newsletters and public
signage.
Avista’s first public EVSE at the Steam Plant in Spokane, WA
— in operation since 2010
Avista Corp. 57
Summary –
Education and Outreach
10% budget target
By 2023, raise positive customer EV
awareness by 500%
$250 dealer referrals, limited to 100 per
year
EV education and awareness cam-
paigns
Peer-to-peer interest group and TNC
support
Consider informational kiosks, training
and certification programs at auto
dealerships
Consider partnering to establish an EV
Experience Center, providing
education, charging, rental and
purchase support
Continue customer support functions,
including online information and tools,
call center support, and sponsorship
Avista Corp. 58
Community and Low-Income Support
Electric transportation has the potential to deliver
improved transportation services to communities and
individuals most in need with economic cost savings as
well as environmental benefits. Avista is committed to
help provide these benefits for the disadvantaged
communities and individuals it serves.
According to a United Way report, 47% of Avista’s
residential customers in Washington are living in poverty
or struggling with basic living costs.46 In 2019, the
Spokane Transportation Collaborative was formed,
convening area service organizations around the issue of
access to mobility resources—recognized as the most
serious issue following the lack of adequate housing.
Electric transportation can make a difference in alleviating
this problem.
The Company believes that programs and strategies
benefiting low-income customers are best designed in
collaboration with stakeholders, as accomplished both in
the EVSE pilot and the development of proposed
activities in this TEP. Through traditional low-income
assistance and outreach programs over many years,
Avista has established strong partnerships with
community service organizations throughout its service
territory. These partnerships proved to be very valuable in
swiftly designing and implementing new and effective
programs in the EVSE pilot. The Company will continue
to work with established community partners as well as
others that may provide access to broader networks as
appropriate. In particular, Avista intends to partner with
the Spokane Transportation Collaborative, the City of
Spokane, and Urbanova to most effectively understand
transportation issues and how they may be addressed
with future electric transportation and mobility programs
supported by Avista in the Spokane area. Recent efforts
with these groups helped form a consensus around
prioritizing a network of EVSE at public libraries and
community centers which may be used to benefit low-
income customers, as well as creatively leverage service
organization resources—opening the door to increased,
low-cost access to electric transportation services and
public transportation. Additionally, Avista will work with
local government, tribal governments, and other non-
profit organizations throughout the region, tailoring
programs to their specific needs and opportunities.
Internally, administrative support will be provided by the
Consumer Affairs Program Manager who regularly
oversees traditional low-income assistance, education
and outreach programs, however transportation programs
will not compete with resources for established low-
income conservation and rate assistance programs.
In the EVSE pilot, Avista successfully collaborated with
over 15 local service organizations to educate and
discuss electric transportation opportunities in a series of
workshops, culminating in selection of two pilot proposals
from different community service organizations in
Spokane, providing EVs and EVSE utilized for a variety of
beneficial purposes including transport to critical medical
services, job skills training, shuttle services for overnight
shelter and food deliveries. Each organization secured
insurance and accepted responsibility for vehicle
maintenance and operational costs. In both cases, the
volume of transportation services was substantially
increased while realizing transportation cost savings of
57% and 82%. Educational and awareness benefits for
staff and management may further result in expanded EV
adoption for personal and organizational use. Building on
the success of the EVSE pilot, a similar approach will be
used in partnership with the Spokane Transportation
Collaborative and other local government and service
organizations in the region.
46 2016 United Way Asset Limited, Income Constrained and Employed
Report
Avista Corp. 59
As the used EV market develops, lower-cost options for
reliable and inexpensive electric transportation will grow.
The EVSE pilot showed that public EVSE installed in
smaller rural towns may be broadly supported by the local
community and are felt to provide benefits in terms of
public visibility, community access and business
development as part of the regional public EVSE
infrastructure buildout. In many cases, these EVSE
represent the lone public EVSE available for early EV
adopters in those municipalities, making electric
transportation viable for the first time. Leveraging EVSE
infrastructure programs available to all customers, Avista
will provide additional installation assistance to low-
income communities and service organizations for public,
fleet and workplace AC Level 2 EVSE, multiple-unit
dwelling installations, and residential customers receiving
low-income bill assistance. This can take the form of the
utility covering EVSE installation costs that would
normally fall under the customer’s responsibility in these
programs.
Research shows that transportation provided by TNC
platforms such as Uber and Lyft are widely used by
customers with limited transportation resources.47
Exploring this opportunity, Avista will deploy a pilot
program supporting TNC drivers serving disadvantaged
communities through partnerships providing a
combination of public EVSE utilized by TNC drivers, EV
purchase or leasing, and discounted rides. This effort
may also be used to provide easier “last-mile” access to
public transportation.
Additional pilots may be designed and implemented with
public transportation agencies and school districts that
work in coordination with the TNC pilot or in a stand-
alone capacity, provide “make-ready” utility investments,
and/or maintain EVSE installations for transit fleets
serving low-income customers.
Ride-sharing and car-sharing services appear to have
some potential but can pose significant administrative
burdens that reduce effectiveness.48 In this area, Avista
will consider partnering with an experienced organization
such as Envoy to pilot ride-sharing and/or car-sharing
services, for example, in a housing development serving
customers with limited incomes.
47 Brenneis, M. “TNC revolution may improve access for low-income
communities.” SSTI (2020). https://www.ssti.us/2018/07/tnc-revolution-
may-improve-access-for-low-income-communities/
48 Diaz, A. and Teebay, C. “The Future of Car Sharing: Electric,
Affordable, and Community-Centered.” Forth (2018).
Avista Corp. 60
Summary –
Community and Low-Income
Support
30% budget target
Collaborate and partner with communi-
ty stakeholders, local governments
and service organizations in the
development and implementation of
creative programs. Leverage re-
sources together to achieve effective
results
Provide EV and EVSE for community
service organizations through
collaborative and competitive
proposals
Provide EVSE to disadvantaged
communities including rural towns and
low-income multi-unit dwellings, and to
residential customers receiving low-
income bill assistance
Develop and implement pilot programs
with public transit agencies, school
districts and/or TNC platforms as early
as 2022
Consider partnering with Envoy and/or
other organizations, piloting ride-
sharing and car-sharing services
Avista Corp. 61
Commercial and Public Fleets
Opportunities to support beneficial electric transportation
in commercial and public fleets exist today and will grow
in the future. Avista can begin to support this growth with
information, tools and consulting services for commercial
customers in their consideration of fleet electrification,
including vehicle and charging information, utility rates
and load management options, total cost of ownership
(TCO) comparisons, referrals, and available purchase
incentives and tax rebates. This may be provided now for
light duty passenger vehicles and lift trucks (forklifts),
followed by commercial delivery vehicles, airport ground
support equipment and refrigerated trailer units in the
future as markets further develop and more knowledge is
gathered in these areas. The Company also intends to
develop pilot programs working with transit agencies and
school districts, in order to better understand the costs,
benefits, grid impacts and support that Avista may best
provide to help electrify these fleets. This may be
accomplished in conjunction with beneficial services to
low-income customers.
In addition to fuel and maintenance savings, zero tailpipe
emissions, quiet operations, and beneficial utility
revenues, commercial and public fleet electrification
results in significant reductions in greenhouse gas
emissions, as shown in Table 11 below.
According to local distributors and the 2019 Industrial
Trucking Association (ITA) annual sales report, despite
electric lift truck sales of over 60% of total sales in the
U.S., local electric sales are on the order of 36% in
Avista’s service territory. This presents an opportunity to
support increased electric lift truck sales, with resulting
benefits for all utility customers. A new program
supporting lift trucks is modeled after other successful
utility programs in the U.S. The program provides
information resources and lift truck (class 1) purchase
incentives of $2,000 for buyers, and $250 for dealers.
Per lift truck purchase, this will result in avoiding 16
metric tons of CO2 tailpipe emissions, customer fuel
savings of 76%, and $1,500 per year in beneficial utility
revenue. Load-management services and consultation on
EVSE installations will also be provided. An additional
$1,000 purchase incentive is proposed for purchase of
Table 11: Avoided CO2 reductions from electric transportation, net of grid emissions in the Pacific Northwest (McKenzie, p. 18)
Avoided Emissions (metric tons CO2)
High grid emissions at 0.5 lbs CO2/kWh Zero grid emissions (100% renewable sources)
Personal Light-duty EV 13 21
Taxi and TNC EV 34 44
Electric Lift Truck (Forklifts) 42 52
Electric Parcel Delivery Truck 62 88
Electric Transit Bus 650 910
Table 12. Proposed incentives for lift truck, ground support equipment, and truck refrigeration unit electrification
Electric equipment type
Additional annual utility revenue per vehicle
Customer purchase cost premium
Customer purchase incentive
Dealer referral incen-tive
Annual fuel savings from electric
Potential for load shifting
Lift truck (class 1) $1,500 $5,000 $2,000 $250 $2,600 Moderate to High
Lithium-ion batteries - $3,000 $1,000 - - Moderate to High
Ground support equipment $2,250 varies TBD TBD varies Moderate
Truck refrigeration unit $1,100 $3,000 TBD TBD $1,600 Low
Avista Corp. 62
Class 1 lift trucks utilizing lithium-ion batteries as opposed
to lead-acid. This is based on customer interviews and
market research showing that lithium-ion is often needed
to make electric lifts feasible for outdoor applications or
multi-shift operations, but presents additional upfront cost
premiums.49 Purchase incentives apply to new as well as
“first time sales” of lease-return units, as many dealers
lease the lifts and then sell them after a few years
depreciation.
Fleet managers often choose to convert to electric for
economic reasons, since operating an electric lift typically
saves over 76% in fuel costs and roughly 40% in annual
maintenance costs compared to a gas lift. However,
electric lifts have an upfront premium cost of 30% to 40%
compared to gas lifts. This premium imposes a market
barrier for many organizations that would otherwise
benefit from the residual cash flow and employee health
benefits of switching to electric over the equipment’s
lifetime. Purchase incentives and information resources
provided by the program are designed to effectively
overcome these barriers.
For example, a local foundry served by Avista uses 60
forklifts around the clock on three shifts, all powered by
propane. According to this customer, propane-powered
forklifts are what they are accustomed to and there is
uncertainty as to whether a switch to electric forklifts
would be worth the effort and expense. The primary
concern in this case is not the additional electricity
expense, but rather the upfront cost of the equipment and
the operational feasibility and risk associated with making
the change. According to a local dealer, an average
forklift rated at 5,000 lbs costs between $26,000 and
$35,000, compared to an electric forklift that costs
between $32,000 and $39,000, plus the cost of the EVSE
at close to $3,000 prior to any rebates or incentives. Fuel
cost savings vary but can often provide a payback period
in a few years; however, many businesses require
paybacks in fewer than two years in order to justify capital
investments.
From a TCO perspective, an electric lift would have a
payback period of approximately two years and over the
course of seven years would cost 32% less than a gas
lift, and 38% less than a diesel lift, as shown by the TCO
comparison tool developed by the Electric Power
Research Institute (EPRI).50 There is also a variety of
applications where electric lifts are superior to gas lifts,
such as in operating environments that are indoors or
have poor ventilation, and where the risk of exhaust
contaminants prevents the use of gas lifts. Under regular-
use conditions, a gas lift will emit over 16 metric tons of
CO2 tailpipe emissions annually. An electric lift produces
no tailpipe emissions, resulting in zero local emissions of
air pollutants. Even after factoring in Avista’s combined
emissions from its mix of electric generation sources, an
electric lift produces only four metric tons of CO2
annually, a 74% decrease of emissions compared to a
gas lift.
Due to flexible battery capacities, lifts are capable of
operating multiple shifts back to back without recharging
or swapping their batteries. Fully charged batteries can
be swapped into lifts in a process that takes about 15
minutes when downtime needs to be minimized. Batteries
can be fast or slow charged using single or three-phase
power up to 10 kW, although usually charging is done
between shifts at consistent intervals. As a result of this
beneficial and often flexible load, the consistency of
charging between shifts, reduced carbon emissions, and
the ability to model other proven utility programs, electric
lift trucks are an ideal candidate for Avista’s first fleet
electrification program utilizing equipment purchase
incentives.
49 https://www.refrigeratedfrozenfood.com/articles/98521-allan-brothers-
boosts-operation-effectiveness-with-lithium-ion-technology
50 https://et.epri.com/LiftTruckCalculator.html
Figure 27: Total Cost of Ownership (TCO) for propane, diesel, and electric lift trucks (courtesy EPRI)
Avista Corp. 63
One model example is provided by the electric utility JEA
serving Jacksonville, Florida. Prompted by the financial
crisis of 2009, JEA began searching for new ways to
support beneficial load growth, with a forklift electrification
rebate as one of the pillars of their industrial electrification
program.51 Since 2015, JEA has helped customers
purchase over 3,500 electric lifts through the program,
adding over 64,090 MWh of load annually. JEA estimates
that 72% of that usage is during off-peak hours.
Customer representation is spread proportionally among
small, medium and large businesses, with customers
reporting benefits including improvements to their working
environments and the removal of misconceptions of
electric lifts as a result of converting from propane or
diesel lifts to electric.
In a second example, the utility CenterPoint Energy
headquartered in Houston, Texas has a long-standing
industrial electrification program that includes electric
forklift rebates.52,53 The program has been operating
since 2008 and has added 17.5 MW of primarily off-peak
demand during the five years ending 2019. Key benefits
of this program have been the ability to support beneficial
electrification while also facilitating an avenue for positive
interactions with the utility, increasing familiarity with the
benefits of electrification among many customers and
stakeholders. Sacramento Municipal Utility District
(SMUD) provides another example, with forklift purchase
incentives of $2,000 per lift to customers and $1,000 to
vendors.54
Light-duty passenger vehicles will also be included for
fleet electrification support, leveraging available EVSE
installation programs as applicable. Similar programs
may be proposed for other vehicle types in the future as
the market continues to mature and attractive
opportunities present themselves. This may include
proposals for purchase incentives and EVSE programs
as deemed most appropriate and cost-effective.
For both lift trucks and light-duty fleet EVSE installations,
the commercial EV TOU rate may be applied with
dedicated meter service. Load management consultation
services will also be provided as part of the fleet support
program.
51 https://www.jea.com/Business_Resources/Rebates_for_Businesses/
Electric_Forklifts/
52 https://www.utilitydive.com/news/enhancing-customer-engagement-a-
utility-roadmap-for-the-amazon-era/513195/
53 https://www.power-grid.com/2016/11/22/utilities-offset-slow-load-
growth-with-new-business-ventures/
54 https://www.smud.org/en/Going-Green/Electric-Vehicles/Business
55 see the following OSHA website for full descriptions of all forklift
classes: https://www.osha.gov/SLTC/etools/pit/forklift/types/classes.html
annual new lift truck sales, not including leases (all classes) 400
average service life (years) 10
total new and used lift trucks in service, not including leased units 4000
additional leased lift trucks in service 1000
total lift trucks in service, including leased units 5000
total lift trucks in service in Eastern Washington 3250
total lift trucks in service in Northern Idaho 1750
electric rider (Class 1) lift truck new sales 105
ICE rider lift trucks new sales 185
electric percent of total rider lift truck new sales 36%
Table 13: Lift truck market estimates for eastern Washington and Northern Idaho 55
Avista Corp. 64
Summary –
Commercial
and Public Fleets
5% budget target
Initiate a fleet support program
starting with light-duty passenger
vehicles and forklifts
Provide information and consulting
services including vehicle and
charging information, utility rates and
load-management options, total cost
of ownership (TCO) comparisons,
available incentives, and referrals
Provide dealer and customer purchase
incentives for electric lift trucks to
help boost sales, rapidly “paid back”
by additional utility revenue
Enroll participants in the pilot EV TOU
rate to encourage off-peak charging
Consider expanded fleet support
services to other vehicle types in the
future, including purchase incentives
for airport ground support equipment
and truck refrigeration units as early
as 2022
Support and possible purchase
incentives for emerging medium duty
and heavy-duty vehicles may be
considered and proposed as the
market and technologies develop
Develop fleet support pilots with mass
transit bus and school bus agencies in
2022—2023
Avista Corp. 65
Planning, Load Management
and Grid Integration
Avista will continue to monitor and document EV load
profiles, using a smaller test pool of customers with
vehicle telematics connectivity starting in 2021. Updated
EV load profiles and adoption forecasts will be integrated
on a regular basis with System Planning and the
Integrated Resource Plan (IRP). This will be used in
conjunction with updated modeling of grid assets and
conditions, other load forecasts, and the effects of
distributed energy resources (DERs), providing a sound
assessment of generation capacity and distribution
systems for optimized asset management. More detailed
analysis of EV clustering effects on the distribution
system may also be performed, as sufficient data and
modeling capabilities are developed.
Avista will deploy cost-effective load-management
services leveraged with EVSE installation programs. This
will initially be accomplished through EV programming
and the utilization of low-cost, programmable, non-
networked EVSE. Experimentation with new technologies
and industry innovations will also be considered, such as
the utilization of advanced metering infrastructure (AMI)
and other technologies that communicate with EVs and
other distributed energy resources, given the potential to
optimally manage loads and integrate with the grid at
scale. After careful consideration, Avista may elect to
support EVSE hardware and software development if the
market is slow or unable to deliver needed products and
services that are cost effective. Residential TOU rates
may also be considered and piloted with groups of
customers participating in the EVSE program, starting in
2023. By 2025, the goal is to demonstrate greater than
50% peak load reduction from light-duty EVs than would
otherwise occur with uninfluenced charging, thereby
achieving grid benefits greater than expenses required to
perform load management.
Developing scalable and cost-effective load-management
solutions for a large number of light-duty EVs is important
over the longer term—particularly as adoption levels
reach approximately 30% of vehicles on the road—at
which point the distribution system may begin to see
material impacts. In the nearer term, the adoption of
medium- and heavy-duty EVs for mass transit and other
commercial fleet applications could impact local
distribution grids much sooner, given power demands
greater than 1 MW. As such, Avista will monitor
developments closely and work with customers such as
STA to better understand operational needs and
limitations, as well as opportunities to optimally integrate
with local grid conditions in terms of minimizing
infrastructure costs.
Other topics of interest include how expected adoption in
each market segment may influence transformer and
feeder conductor sizing, as well as feeder dynamics and
voltage control requirements. The Company intends to
study potential impacts via experimental pilots and
solutions on a small scale in order to develop scalable,
cost-effective deployments on a larger scale.
AC level 2 EVSE site construction in partnership with WSU (Riverpoint Campus, 2017)
Avista Corp. 66
Summary –
Planning, Load Management
and Grid Integration
5% budget target
Collect telematics data and analysis to
provide updated light-duty EV profiles
Leverage EVSE installation programs
to continue development of load-
management capabilities
Achieve 50% peak load reduction from
light-duty EVs, with net grid benefits
by 2025
Support load management for medium
and heavy-duty electrified fleets, such
as with mass transit agencies
Avista Corp. 67
Technology and Market Awareness
Avista will utilize a deliberate process of monitoring and
validation of emerging technologies and market
opportunities in electric transportation. During the initial
monitoring phase, thresholds may be identified such as
when TCO advantages appear feasible, emerging
technical innovations, etc, that trigger the development of
pilot programs testing technical feasibility, costs and
customer experience. Pilots may lead to informed
deployments that can scale up over the long term,
achieving sustained benefits for all utility customers.
Rapid changes in a number of key areas are expected,
as described in the previous Technology and Markets
section, which Avista will continue to monitor. These
areas include the following:
Batteries
$/kWh
Chemistry and thermal management
Voltages
Battery life and OEM warranties
Recycling and second use for grid storage
EVSE
Power output
Communications interoperability
Connector standards
Inductive charging
Light-duty EV Market and Consumer Preferences
Light-duty EV % of total vehicle sales
% online sales
EV vs. ICE vehicle costs
Up-front purchase
Fuel and maintenance
Total cost of ownership (TCO)
Model availability and OEM announcements
Auto dealer lot inventory
Used market, private-party inventory
Medium- and Heavy-duty Vehicle Electrification
Mass transit BEB adoption and TCO
Electric lift truck % of sales
Electric school bus TCO and pilot opportunities
Electric commercial delivery vehicle availability and TCO
Other electric heavy-duty vehicle availability and TCO
Electrified truck-stop deployments and results
Electric refrigerated-trailer deployments and results
Other Technologies and Market Opportunities
Vehicle-to-home (V2H), -to-building (V2B), and -to-
grid (V2G) deployments
Micro-mobility deployments
Load-management software platforms and
interoperability testing
Hydrogen-powered fuel cell EVs
Figure 28: Technology and Market Monitoring and Testing Process
Avista Corp. 68
Summary –
Technology and
Market Awareness
2% to 5% budget range
Follow deliberate process of monitor-
ing and pilots to validate and design
scalable deployments
Key monitoring areas include:
Battery technology
EVSE
Light-duty market and consumer
preferences
Medium- and heavy-duty vehicle
electrification
Other technologies and market
opportunities
Avista Corp. 69
Rate Design
Residential EV Time-of-Use (TOU) Pilot Rate
In the long term, an EV TOU rate for residential
customers may be one of the more effective ways to shift
peak loads from light-duty EVs, maximizing net benefits
for all customers. In this regard, experience with
participants in the commercial EV TOU rate as explained
below should be helpful in implementing a pilot EV TOU
rate for residential customers. This rate may be proposed
in 2023 and eventually applied on a larger scale utilizing
Advanced Metering Infrastructure (AMI) that is now being
deployed in Washington State.
Commercial EV Time-of-Use (TOU) Pilot Rate
Major barriers to increasing commercial electric
transportation include high purchase costs of vehicles
and charging infrastructure, limited vehicle models and
availability, low consumer awareness, and high utility bills
driven primarily by demand charges. Although the utility
has little influence on vehicle models and availability, it
can help address charging infrastructure and low
awareness, as detailed in other sections of this Plan.
Through new rate designs, it may also address the issue
of high demand charges for commercial fleets and DC
fast charging sites, while encouraging more off-peak
charging.56
As an example, consider the case of the Spokane Transit
Agency (STA), the main provider of public transit in the
greater Spokane metro area. STA is in the process of
purchasing four battery-electric buses (BEBs) for a new
route serving the Moran Prairie and Monroe Street areas,
to be placed in service in 2021 and, if successful,
followed by another five to seven BEBs on this route. In
addition, another ten BEBs will be purchased and
operational beginning in 2022, serving a new central “City
Line” connecting the urban core with rapid, zero-emission
mass transit. All of these BEBs will be housed in a new
depot facility near downtown Spokane. Given the state of
current technology, plans are to charge the BEBs for up
to ten minutes at one end of the route using a high
powered 450 kW overhead charger, and staggered
charging at the depot overnight, with additional DC fast
chargers each providing 450 kW. Purchase premiums are
still very high for electric buses, typically $250,000 or
more than the base cost of $500,000 for a diesel bus
which may serve most routes in the Spokane area, plus
additional EVSE costs, utility service upgrades, and
backup generation facilities. STA has estimated these
additional costs to serve up to 20 buses at over $2
million, or approximately $100,000 per bus. With lower
projected costs for diesel fuel at $2.37 per gallon, STA
projects monthly diesel fuel expenses for nine BEBs on
the new Moran-Prairie-to-Monroe-St. route at $18,100.
This compares to $15,300 monthly electricity bills for
BEBs, approximately 45% of which comes from demand
charges. With savings of nearly $3,000 per month in fuel
costs, payback for the large upfront cost premiums does
not occur under current electric rate schedules. Federal
and state grants have mostly enabled early electrification
plans at STA; however, the business case must be
dramatically improved in order to fully electrify the entire
fleet of over 140 coaches and many other smaller
passenger vehicles.
The path to full electrification at STA will depend on
technology and cost improvements that eventually allow
for greatly reduced purchase costs and batteries with
sufficient energy to operate a full day without in-route
charging. At that point, economical depot charging may
occur mostly overnight, without the need for in-route
56 “Peak Demand Charges and Electric Transit Buses.” CALSTART.
US Dept of Transportation, Federal Transit Administration (2014).
DCFC site construction at the West Plains Transit Center and Park & Ride—in partnership with Spokane Transit Authority (2018)
Avista Corp. 70
charging that adds significantly to overall expenses.
Additionally, more substantial operational cost savings
could be realized by STA if a new rate schedule provides
relief from demand charges, while encouraging off-peak
charging. This is in fact a necessity to enable an
expanded and sustained electrification of STA’s fleet.
In another example, the important buildout of DC fast
charging infrastructure and investment by third-parties is
inhibited by high operating costs, particularly in the early
stages of market growth where utilization is low. A DC
fast charger with only 2% load factor is effectively billed
$0.41/kWh under current rate schedules, making it
impossible to recover these costs from competitive user
fees of $0.35/kWh, which are roughly equivalent to the
alternative of gasoline at $3 per gallon. In addition, as
discovered in the EVSE pilot, DCFC typically require
$1,500 per year in other operational expenses including
site inspections and maintenance, EVSP networking fees,
communication fees, and unplanned EVSE repairs.
In a recent study of 51 EV rate options from 21 electric
utilities in the U.S., it was found that relatively few rate
options were available to commercial customers, and that
TOU energy charges without demand charges, combined
with monthly fixed charges and seasonal differences
were most common.52 In Washington State, Pacific
Power was approved for an optional TOU rate applicable
to public DCFC sites with less than 1 MW maximum
demand. Pacific Power’s Schedule 45 includes a TOU
energy charge between 6am and 12pm and 5pm and
9pm in winter, and between 1pm and 8pm in summer.
TOU energy charges are gradually reduced and demand
charges reinstated over a 13-year period in this optional
rate schedule.
Based on these assessments, Avista proposes a pilot EV
TOU rate for commercial customers that is essential to
support sustainable growth in fleet electrification and
public DC fast charging. The proposed rate provides for
reasonable recovery of utility costs based on additional
time-of-use (TOU) energy charges, while eliminating
demand charges that currently inhibit market growth. In
this way, it establishes sensible electric billing rates for
businesses that invest in electric fleets and public
charging, encouraging early and sustained fleet adoption,
larger workplace charging facilities, and third-party
ownership of public DC fast charging. Through higher on-
peak price signaling, it also encourages more off-peak
charging, which is beneficial to all customers. The intent
is to encourage early commercial EV adoption in the
Company’s service territory while providing a means to
acquire usage and cost data that may be used to conduct
more comprehensive analysis and a more permanent EV
TOU rate in 2025.
The new EV rate schedules will be made available to
commercial customers, provided that EV charging loads
are metered separately from other facility loads and peak
demand does not exceed 1 MW. Above this threshold,
load management may be required, and it must be
demonstrated that all reasonable measures are being
taken to mitigate impacts and required upgrades to the
local distribution grid as a condition of utilizing the pilot
rate. The TOU energy charge on the order of $0.05 per
kWh is applied in addition to regular energy charges on a
seasonal basis, during the hours of 7am to 10am and
5pm to 8pm from November through March, and 3pm to
7pm from April through October. Provisions of existing
commercial rate schedules apply other than the removal
of demand charges and the addition of on-peak energy
charges, and rates will occasionally change slightly in
accordance with regular system-wide adjustments.
For DC fast charging sites, assuming 2% load factor, this
will result in an all-in rate per kWh of approximately
$0.16, in contrast with $0.41 under current rate
schedules. Compared to the competitive market-based
user fee of $0.35/kWh which approximates $3/gallon of
gasoline, the owner of a DCFC may then begin to recover
operational costs for electric billing and maintenance
costs. In the case of a transit agency such as STA
operating 10 BEBs, assuming 19% load factor results in
an all-in rate per kWh of $0.09 compared to $0.12 under
current rate schedules. This provides for approximately
26% fuel cost savings on an order necessary to initiate
pilot deployments of electric buses and the viability of
more widespread fleet electrification.
57 “Review and Assessment of Electric Vehicle Rate Options in the
United States.” EPRI Report 3002012263 (2018).
Avista Corp. 71
Eligible commercial customers may choose to adopt the
pilot TOU rate starting in 2021, with open availability
through 2025. At that time, the Company intends to
propose a more permanent EV TOU rate based on
collected data and analysis completed during the 2021-
2025 pilot period. Customers that initially participate in
the pilot rate may then choose between the new EV rate,
or elect to continue with the pilot EV rate for another five
years through 2030. Early adopters are thereby given
reassurance that the pilot rate may be applied through
2030 when they consider making sizable capital
investments in new electric fleet and charging
infrastructure with service lives of ten years or more.
A relatively small number of customers is expected to
participate in the pilot TOU rate, minimizing risks while
providing valuable data to study effects on local
coincident loading patterns and impacts on the
distribution system, enabling development of a more
permanent EV TOU rate schedule.
Avista Corp. 72
Utility Fleet Electrification, Facilities
and Employee Engagement
Utilities must set a good example for customers in
electrifying their own fleets and facilities, as well as
encouraging employee engagement around electric
transportation. Long term, the utility can greatly benefit
from transportation electrification in terms of reduced
costs and greater reliability. By 2025, the Company’s goal
is to expand utility fleet, facility and employee
engagement levels by 300%. In addition to realizing fleet
and employee benefits, through direct experience in
these areas the Company is better able to advise
customers. Also, employees who drive electric act as
respected ambassadors in the community, raising
positive awareness and adoption of EVs in the region.
Utility Fleets
Every year Avista’s fleet of over 700 vehicles drives more
than 7 million miles, fulfilling the mission of delivering safe
and reliable energy. The mix of vehicles includes Class-1
light-duty passenger vehicles through Class-8 heavy
tractors weighing in at over 105,000 pounds.
In 2010 Avista’s fleet began the journey of transportation
electrification with the purchase of two Toyota Prius
PHEV conversions. That effort expanded to bring a
Nissan LEAF into the fold when it arrived on the market in
2011. In 2011 we also began to invest in an electric
Power Take-Off (ePTO) system. In 2014 Avista joined
other utility fleet leaders in the development of Edison
Electric Institute’s (EEI) Transportation Electrification
Initiative. That initiative won the commitment of over 77
investor-owned utility fleets to invest five percent or more
of annual fleet spending on electrified transportation
alternatives. To date that effort has doubled the goal of
five percent with an average investment of over $95
million per year over the last four years.
Since making that commitment in 2014, Avista has
invested in an expanding range of technologies aimed at
demonstrating and proving out the best possible business
cases for electrification in the fleet. These efforts include
the expansion of EV, PHEV and range extending PHEV
technology in passenger vehicles. Next the Company has
looked to the significantly larger fleet of work trucks to
identify vehicles where proven technology can meet
required duty cycles.
Avista’s testing and use of work platform systems has
taken a number of forms. On large construction aerials a
full ePTO system was used with great success,
eliminating over 90% of the vehicle’s monthly idle time.
However, this system is expensive and packs a
significant amount of weight on a unit that has very
stringent state weight limits. With this in mind, Avista
initiated trials using electrified idle-mitigation technology
on small service body trucks and large aerials. Results
with this technology have been less than what was
modeled by initial analysis, as user adoption and
technology gaps have created the most challenges in
operating such systems in the fleet. This included issues
with getting operators to consistently charge at home
even when compensated for the electricity consumption,
and to avoid system over-rides when it should have been
engaged.
Figure 29: EEI 5% utility fleet electrification pledge
Avista fleet EV and facility EVSE for fleet, public, and workplace
charging — Deer Park, Washington (2018)
Avista Corp. 73
On the positive side, the systems eliminated battery
issues on single-battery service trucks. Another lesson
learned was the technical difficulty in integrating an idle-
mitigation system with a complex cab chassis that
already has many other chassis integrations, foremost
among these being the starting and stopping of a chassis,
and secondary cooling and heat.
The future of fleet electrification is dependent on the
development and availability of cost-effective electrified
Class-1, -2 and –3 pickup trucks that meet emergency
response requirements. Passenger vehicles are the most
widely available EV type but make up a small fraction of
the company’s fleet. At this time there is no cost-effective
electric solution available from any of the three domestic
truck manufacturers and conversion solutions have many
issues. Looking ahead, for large trucks that have
mounted equipment such as bucket trucks, the duty cycle
of most of that fleet makes sense for electrification. These
units, location dependent, tend to have a significant
amount of idle time which can be reduced or eliminated.
However, cost and weight as well as form factor impact
that deployment today.
The good news is that multiple technology advances
appear to be near or ready for market. The rollout of both
light- and heavy-duty EVs has a future in the market
place. However, as a utility fleet our requirements are
different from that of a typical fleet operator. We can
never forget that our trucks and crews respond to
emergencies across our service territory, and in some
cases across the nation when assisting other utilities in
remote locations. With crews working 16 hours a day
during these instances and up to 36 hours initially, we
must have power systems that can reliably meet that
demand. Our efforts will be focused on enabling our
workers to respond day-in and day out-in support of
Avista’s core mission.
EVSE Facilities
Adequate workplace charging at Avista facilities coupled
with effective employee engagement on electric
transportation options can make a big difference in
employee adoption, which translates to higher awareness
and long-term EV adoption in the community.
EVSE installed at Avista facilities throughout the region
can provide charging availability for visiting members of
the public, as well as for utility fleet vehicles and
employees commuting with an EV. This has been
successfully demonstrated by EVSE installed at the
Company’s headquarters in Spokane, Washington, as
well as a few other outlying offices. Avista will continue to
install EVSE at facilities throughout its service areas at an
appropriate level that allows employees commuting with
an EV to charge at work, as well as for use by an
expanded EV passenger fleet and the public at Company
facilities.
Employee Engagement
In addition, Avista will provide information and resources
for employees to better understand the benefits of EVs
and to help make informed transportation choices, similar
to education and outreach resources available to
customers. EEI provides a wealth of knowledge and
resources around the topics of electrification to help
utilities in engaging their employees.
Finally, the Company will look to partner with OEMs
offering EV purchase discounts to employees. At some
point Avista may consider supplementing this with
additional purchase incentives funded by shareholders,
when EV availability and choices in the market would
yield the greatest positive effects.
Avista EVSE for fleet, public, and workplace charging
— Spokane Project Center (2017)
Avista Corp. 74
References
“Avista Low Income Needs Assessment – Final Report.”
Evergreen Economics (2020).
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Appendix A:
Glossary of Terms
Sources: Altas HUB, Alliance for Transportation
Electrification, Wikipedia, and from SEPA as adapted
from the California Public Utilities Commission (CPUC)
Vehicle Grid Integration Communications Protocol
Working Group Glossary of Terms (http://
www.cpuc.ca.gov/vgi/), 2017. These definitions are
“working definitions” and are not meant to be formal or
conclusive, with some editing by the authors.
AC, DC: alternating current, direct current. The U.S.
electricity grid generally operates on AC. A typical
household outlet is 110–120 VAC (volts alternating
current). Larger home appliances use 240 VAC. Electric
car batteries operate on DC.
AC Level 2 Charger: AC Level 2 (L2) chargers can be
found in both commercial and residential locations. They
provide power at 220V-240V and various amperages
resulting in power output ranging from 3.3kW to 19.2kW.
AFDC: U.S. DOE Alternative Fuel Data Center website
containing a wealth of information on alternative fuels and
vehicles.
Aggregator: An aggregator is a third-party
intermediary linking electric vehicles to grid operators.
Increasingly, aggregators are stepping into a role of
facilitating interconnections to entities that provide
electricity service. Broadly, aggregators serve two roles:
downstream, they expand the size of charging networks
that electric vehicle (EV) customers can access
seamlessly, facilitating back-office transactions and billing
across networks; upstream, they aggregate a number of
EVs and charging station operators (CSO) to provide
useful grid services to distribution network operators
(DNO) and transmission system operators (TSO).
AV: Autonomous vehicle is a vehicle that can guide
itself without human input. There are various levels of
autonomous technology as defined by SAE, from level 0
(no driving automation) to level 5 (full driving automation).
BEV (Battery Electric Vehicle): Battery Electric
Vehicle is a vehicle with a drivetrain that is only powered
by an onboard battery and electric motor(s).
CAV: Connected autonomous vehicle is an
autonomous vehicle that has vehicle-to-vehicle or vehicle
-to-infrastructure capabilities.
C2 Device: A telematics hardware device, from
FleetCarma, that is capable of logging driving and
charging data from electric vehicles.
CCS: The Combined Charging System is a charging
method for electric vehicles from the SAE J1772
connector. The plug contains DC and AC options and is
also referred to as a combo connector. The automobile
manufacturers supporting this standard include BMW,
Daimler, FCA, Ford, General Motors, Hyundai, Jaguar,
Tesla and Volkswagen.
Charger: A layperson’s term for the on-board or off-
board device that interconnects the EV battery with the
electricity grid and manages the flow of electrons to
recharge the battery. Also known as electric vehicle
supply equipment (EVSE).
Charge Session: A charge session is the period of
time an electric vehicle (EV) is actively charging its
battery through the connection with a charger (EVSE).
Charging: Charging is the process of recharging the
onboard battery of an electric vehicle.
Charging Level: The terms “AC Level 1”, “AC Level 2”
and “DC fast” describe how energy is transferred from the
electrical supply to the car’s battery. Level 1 is the
slowest charging speed. DC fast is the fastest. Charging
rate varies within each charging level, depending on a
variety of factors including the electrical supply and the
car’s capability.
Charging Station: The physical site where the electric
vehicle supply equipment (EVSE) (also known as the
charger) or inductive charging equipment is located. A
charging station typically includes parking, one or more
chargers, and any necessary “make-ready equip-
ment” (i.e., conduit, wiring to the electrical panel, etc.) to
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connect the chargers to the electricity grid, and can
include ancillary equipment such as a payment kiosk,
battery storage or onsite generation.
CHAdeMO: “CHArge de MOve” is the trade name of a
quick charging method formed by Tokyo Electric Power
Company, Nissan, Mitsubishi and Fuji Heavy Industries,
and later joined by Toyota.
Connector: The plug that connects the electricity
supply to charge the car’s battery. J-1772 is the standard
connector used for Level 1 and Level 2 charging. CCS or
“combo” connectors are used for DC Fast charging on
most American and European cars. CHAde-MO is the
connector used to DC fast charge some Japanese model
cars.
Demand Response (V1G, direct load management,
controlled charging, intelligent charging, adaptive
charging or smart charging): Central or customer
control of EV charging to provide vehicle grid integration
(VGI) offerings, including wholesale market services.
Includes ramping up and ramping down of charging for
individual EVs or multiple EVs, whether the control is
done at the EVSE, the EV, the EV-management system,
the parking lot EV energy-management system or the
building-management system, or elsewhere.
DER: Distributed energy resource
DERMS: Distributed energy resource management
system
Direct Current Fast Charger (DCFC): Direct current fast
charging equipment is designed to rapidly deliver direct
current to a vehicle’s onboard battery. DCFCs commonly
have power ratings of 50kW or higher.
Direct Install Costs: Corresponding to the direct
costs associated with the installation of an EVSE. These
costs include labor and materials for mounting the EVSE,
wiring connections, network connections, signage, EVSE
testing, and work to complete required permitting and
inspections.
DOE: “Department of Energy” is commonly used to refer
to the U.S. energy agency or a state energy agency.
DOT: “Department of Transportation” is commonly used
to refer to the U.S. Dept of Transportation or a state
transportation agency.
DR: Demand response (see “Demand Response”)
DRMS: Demand response management system
E&O: Education and outreach
Electric Vehicle Service Provider (EVSP): An electric
vehicle service provider also known as a network service
provider (NSP), provides services related to chargers,
such as data communications, billing, maintenance,
reservations and other non-grid information. The EVSP
sends grid commands or messages to the EV or EVSE
(e.g., rates information or grid information based on
energy, capacity or ancillary services markets; this is
sometimes called an electricity grid network services
provider). The EVSP may send non-grid commands (e.g.,
reservations, billing, maintenance checks), and may
receive data or grid commands from other entities, as
well as send data back to other entities.
Electric Vehicle Supply Equipment (EVSE): Electric
vehicle supply equipment, also often called an EV
charger, is stand-alone equipment used to deliver power
to the input port connection on an EV. This device
includes the ungrounded, grounded and equipment-
grounding conductors and the electric vehicle connectors,
attachment plugs and all other fittings, devices, power
outlets or apparatus associated with the device, but does
not include premises wiring.
ENERGY STAR for EVSE: Compliance standards for
electric vehicle supply equipment to receive ENERGY
STAR certification.
EPA: “Environmental Protection Agency” is commonly
used to refer to the U.S. environmental protection agency
or a state environmental protection agency
EPRI: Electric Power Research Institute conducts
research, development and demonstration projects to
benefit the public in the United States and internationally.
EV: “Electric vehicle” is the commonly used name for
vehicles with the capability to propel the vehicle fully or
partially with onboard battery power and contains a
mechanism to recharge the battery from an external
power source. EVs can include full battery-electric
vehicles (BEVs) and plug-in hybrid electric vehicles
(PHEVs).
EVSE: See Electric Vehicle Supply Equipment.
EVSP: See Electric Vehicle Service Provider.
Fleet EVSE: EVSE for use by business owned
vehicles.
GGE: Greenhouse gas emissions
GHG: Greenhouse gas
GMS: Grid Management System is based on an
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architecture and guiding principles to proactively support
changing requirements while minimizing disruption to
existing operations, consumer commitments and
regulatory requirements.
GSE: Ground support equipment is equipment used
in airports, such as belt loaders, luggage tags and water
trucks.
HDV: Heavy-duty vehicles have a gross vehicle weight
above 26,000 pounds.
ICE (Internal Combustion Engine): ICE is an acronym
for “Internal combustion engine.” ICE vehicles typify the
majority of gasoline/diesel/natural gas vehicles that make
up the majority of automotive fleet.
ICCT: International Council on Clean Transportation.
ICCT is a research group and has published several
reports transportation electrification
IEEE: Institute of Electrical and Electronics Engineers
is a professional association whose objectives are the
educational and technical advancement of electrical and
electronic engineering, telecommunications, computer
engineering and allied disciplines.
IEEE 2030.5: IEEE 2030.5 is a standard for communi-
cations between the smart grid and consumers. The
standard is built using Internet of Things (IoT) concepts
and gives consumers a variety of means to manage their
energy usage and generation.
IEEE P2690: This standard defines communications
between electric vehicle charging systems and a device,
network and services-management system, which is
typically based "in the cloud" but could also include
interfaces to site-specific components or systems (e.g.,
building energy management systems).
IGP: Integrated grid planning
Interoperability: The ability of devices, systems or
software provided by one vendor or service provider to
exchange and make use of information, including
payment information, between devices, systems or
software provided by a different vendor or service
provider.
IOU: Investor-owned utility
ISO 15118-1:2013: ISO 15118 specifies the communica-
tion between EV and the EVSE.
J1772: also known as a "J plug", is a North American
standard for electrical connectors for electric vehicles
maintained by the Society of Automotive Engineers (SAE)
International, and has the formal title "SAE Surface
Vehicle Recommended Practice J1772, SAE Electric
Vehicle Conductive Charge Coupler." It covers the
general physical, electrical, communication protocol and
performance requirements for the electric vehicle
conductive charge system and coupler.
L2 Station: See AC Level 2 Charger.
LBEV (Long-Range Battery Electric Vehicles): LBEVs
are BEVs (see BEV) that have an average driving range
greater than 200 miles for a full battery charge.
LDV: Light-duty Vehicles have a gross vehicle weight at
or below 14,000 pounds.
Level 1: Level 1 is part of the charging standard
defined by the SAE for charging equipment using
standard 120V household electricity.
Level 2: Level 2 is part of the charging standard
defined by the SAE for charging equipment using 208V or
240V electricity, similar to the power level used for ovens
and clothes dryers.
Load Curve: A load curve or load profile is a graph of
electrical load over time. This is useful for utilities to
determine how much electricity will need to be available
at a given time for efficiency and reliability of power
transmission.
Make-ready: Make-ready describes the installation and
supply infrastructure up to, but not including, the charging
equipment. The customer procures and pays for the
charging equipment, which could be funded by a
separate rebate or other incentive by the electric
company or other entity.
Managed Charging: Managed charging allows an
electric utility or a third party to control the charging of an
EV remotely. This entity could enable or disable charging,
or could control the power level for charging.
MDV: Medium-duty vehicles have a gross vehicle weight
more than 14,000 and less than 26,001 pounds.
MUD: Multi-unit dwellings are a type of residence in
which multiple housing units are located within a single
building or building complex (e.g., an apartment complex,
duplex, condos, etc). This is synonymous with a multi
dwelling unit (MDU). EVSE at MUDs are intended for use
by MUD residents. EVSE located on hotel or motel
properties are also included within MUD session data in
this report.
NEMA: National Electric Manufacturers Association
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Networked EVSE: These devices are connected to the
Internet via a cable or wireless technology and can
communicate with the computer system that manages a
charging network or other software systems, such as a
utility demand response management system (DRMS) or
system that provides charging data to EV drivers on
smartphones. This connection to a network allows EVSE
owners or site hosts to manage who can access EVSE
and how much it costs drivers to charge.
NGO: Non-governmental organization
Non-networked EVSE: These devices are not
connected to the Internet and provide basic charging
functionality without remote communications capabilities.
For example, most Level 1 EVSE are designed to simply
charge a vehicle; they are not networked and do not have
additional software features that track energy use,
process payment for a charging session, or determine
which drivers are authorized to use the EVSE. Secondary
systems that provide these features can be installed to
supplement non-networked EVSE.
NREL: National Renewable Energy Laboratory
NPV: Net present value is the sum of future cash
flows using a discount rate, such that it takes into the
account of the time value of money.
OATI: Open Access Technology International, Inc.
OEM: Original equipment manufacturer, commonly
used to refer to automobile manufacturers.
OpenADR 2.0b: Open Automated Demand Response
(OpenADR) is an open and standardized way for
electricity providers and system operators to communi-
cate DR signals with each other and with their customers
using a common language over any existing IP-based
communications network, such as the Internet.
OCPP: The goal for the Open Charge Point Protocol
(OCPP) is to offer a uniform solution for the method of
communication between charge point and central system.
PEV (Plug-in Electric Vehicle or PEV): see EV
PHEV (Plug-in Hybrid Electric Vehicle): Plug-in hybrid
electric vehicle is a plug-in electric vehicle that can be
powered by either or both a gasoline/diesel engine and/or
an onboard battery.
Platform: The base hardware and software upon
which software applications run.
Port: See Connector.
Premises Wiring: electrical supply panel and
dedicated 208/240VAC circuits that suppy electricity
directly to EVSE. This includes the protective breaker at
the supply panel, wiring, final junction box, receptacle and
all attachments and connections.
Proprietary Protocol: A protocol that is owned and
used by a single organization or individual company.
Protocol: Set of rules and requirements that specify
the business process and data interactions between
communicating entities, devices or systems. Most
protocols are voluntary in the sense that they are offered
for adoption by people or industry without being
mandated by law. Some protocols become mandatory
when they are adopted by regulators as legal
requirements. A standard method of exchanging data that
is used between two communicating layers.
Public EVSE: Public EVSE can be found in multiple
types of locations including but not limited to business
parking lots, public buildings and adjacent to public right-
of-way. Public AC Level 2 EVSE have a standard J1772
connector, while DCFC have a CHAdeMO and/or CCS
connectors. Tesla vehicles may utilize public EVSE with
an adapter; however, other EVs cannot use Tesla EVSE,
as no adapters are available.
Residential EVSE: Located within a person’s home,
most often in a garage, residential EVSE are usually used
by one or two EVs intended only for use by the
homeowner.
Ride and Drive: Event where individuals are given the
opportunity to look at EVs, talk with EV drivers, and ride
in or drive an EV.
RPS: Renewable portfolio standard
OCPP (Open Charge Point Protocol): An application
protocol for communication between EVSEs and EVSP
servers.
Standard: An agreed-upon method or approach of
implementing a technology that is developed in an open
and transparent process by a neutral, non-profit party.
Standards can apply to many types of equipment (e.g.,
charging connectors, charging equipment, batteries,
communications, signage), data formats, communications
protocols, technical or business processes (e.g.,
measurement, charging access), cybersecurity
requirements, and so on. Most standards are voluntary in
the sense that they are offered for adoption by people or
industry without being mandated in law. Some standards
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become mandatory when they are adopted by regulators
as legal requirements.
Standardization: Process where a standard achieves
a dominant position in the market due to public
acceptance, market forces or a regulatory mandate.
State of Charge (SOC): The level of charge of an
electric battery relative to its capacity.
TCO: Total cost of ownership is a financial estimate
that accounts for both purchase price and continued,
variable operating costs of an asset.
TE: Transportation electrification
Telematics: In the context of EV charging, including
managed charging, telematics refers to the communica-
tion of data between a data center (or “cloud”) and an EV,
including sending control commands and retrieving
charging session data.
TNC: Transportation network company is a company
that connects passengers with drivers via a mobile app or
website. Example companies include Uber and Lyft.
TOU (Time of Use) Rate: “Time of use” often refers to
electricity rates that can vary by the time of day. TOU
rates can also be structured to vary by season.
TRU: Truck refrigeration unit is a device that is
installed in a truck to refrigerate a truck’s storage
compartment.
Use Case: Defines a problem or need that can be
resolved with one or more solutions (technical and/or non
-technical) and describes the solutions. The use case is a
characterization of a list of actions or event steps,
typically defining the interactions, describing the value
provided and identifying the cost.
Uptime: Defines the amount of time an EVSE is
functionally able to provide a charge when requested, as
opposed to a faulted state where no charge may occur.
Depending on configuration settings, networked EVSE
may still be able to provide a charge and maintain uptime
status when offline from the network connection.
Workplace EVSE: Workplace EVSE are located on
business property, primarily intended for use by
employees. However, often the business owner will allow
use by visitors or the public if it is located in an accessible
location.
V1G: V1G refers to vehicles only capable of receiving
power from the electrical grid to the onboard battery. This
can also commonly be referred to as demand response
for EVs
V2B: “Vehicle-to-building” refers to vehicles capable of
sending power from the onboard battery to a building.
V2G: “Vehicle-to-grid” refers to vehicles capable of
receiving power to the onboard battery from the electrical
grid and vice-versa.
V2H: “Vehicle-to-home” refers to vehicles capable of
sending power from the onboard battery to a home.
VMT: Vehicle miles traveled
VPP: Virtual power plant (VPP) is a cloud-based
distributed power plant that aggregates the capacities of
heterogeneous energy resources for the purposes of
enhancing power generation, as well as trading or selling
power on the open market.
ZEV: Zero emission eehicle is a vehicle with no
tailpipe emissions. The term includes battery electric
vehicles and hydrogen fuel cell electric vehicles.
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Appendix B:
Light-Duty EV
Adoption Forecasts
Based on estimates of population and vehicle statistics, the
tables below show underlying assumptions and the total
number of light-duty registered vehicles (not including
motorcycles) as they grow over time in the counties served by
Avista electricity in Washington and Idaho.
0.757 estimated light-duty highway vehicles per person, excluding motorcycles
2% annual growth rate of light-duty vehicle registrations
15 average vehicle age (years)
6.7% annual vehicle stock turnover rate
Table 14: Statistical assumptions for light-duty vehicles
Table 15: Total light-duty highway registered vehicles in counties served by Avista (not including motorcycles)
Year
Ending Washington Idaho Total Annual Vehicle Stock Turnover
2019 512,297 243,311 755,608 50,374
2020 522,543 248,177 770,720 51,381
2021 532,994 253,141 786,135 52,409
2022 543,654 258,204 801,857 53,457
2023 554,527 263,368 817,894 54,526
2024 565,617 268,635 834,252 55,617
2025 576,930 274,008 850,937 56,729
2026 588,468 279,488 867,956 57,864
2027 600,238 285,078 885,315 59,021
2028 612,242 290,779 903,022 60,201
2029 624,487 296,595 921,082 61,405
Based on state registration data for 2019, total vehicle stock
turnover each year, and assumed sales rates through year-end
2029, the following tables show the estimated number of EVs
in the counties served by Avista electricity in Washington and
Idaho for baseline, high and low adoption scenarios.
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In the baseline adoption scenario, average OEM product and
strong utility support programs result in a sales rate of 15% by
2030 in Washington, at this level sustainably reaching the early
mass market. A damper of 25% is assumed for Idaho in the
baseline scenario, given the current state of lower support
levels and a more rural, less populated service territory.
Table 16: Baseline EV Adoption Scenario - EVs registered in counties served by Avista electricity
Year Ending Washington Idaho Total
2019 1,331 409 1,740
2020 1,812 569 2,381
2021 2,339 744 3,083
2022 2,951 948 3,899
2023 3,728 1,206 4,934
2024 4,792 1,560 6,352
2025 6,273 2,052 8,326
2026 8,350 2,742 11,092
2027 11,250 3,707 14,957
2028 15,259 5,040 20,299
2029 20,505 6,784 27,289
In the high adoption scenario, strong OEM product is matched
with strong utility support programs that result in a sales rate
of 15% in 2027, at this level sustainably reaching the early
mass market several years earlier than the baseline scenario,
and reaching a sales rate of 40% by 2030.
Table 17: High EV Adoption Scenario - EVs registered in counties served by Avista electricity
Year Ending Washington Idaho Total
2019 1,331 409 1,740
2020 1,834 564 2,398
2021 2,467 758 3,226
2022 3,271 1,005 4,276
2023 4,418 1,358 5,775
2024 6,114 1,879 7,993
2025 8,624 2,650 11,274
2026 12,335 3,790 16,125
2027 18,013 5,535 23,548
2028 26,701 8,205 34,905
2029 40,610 12,479 53,090
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In the low EV adoption scenario, relatively weak OEM
product is appropriately supported by scaled-back utility
programs, only reaching a 5% sales rate by 2030.
Table 18: Low EV Adoption Scenario - EVs registered in counties served by Avista electricity
Year Ending Washington Idaho Total
2019 1,331 409 1,740
2020 1,455 447 1,902
2021 1,695 521 2,216
2022 2,002 615 2,618
2023 2,396 736 3,132
2024 2,899 891 3,790
2025 3,543 1,089 4,632
2026 4,368 1,342 5,710
2027 5,424 1,667 7,091
2028 6,776 2,082 8,858
2029 8,506 2,614 11,120
These tables are summarized in the chart below for total EVs
registered in Washington and Idaho counties served by Avista
electricity. An estimate of the number of EVs registered by
Avista electric customers may be made by applying an
approximate percentage of households served in each county
to the total EVs registered. This percentage is currently
Sources: Washington and Idaho registration data; Bloomberg New Energy Finance Electric Vehicle Outlook, 2019 and
2020; “Economic & Grid Impacts of Electric Vehicle Adoption in Washington & Oregon.” Energy and Environmental Eco-
nomics (2017).
Avista Corp. 84
Appendix C:
Stakeholder Engagement,
Comments and Support
Development of the TEP followed from lessons learned during the EVSE Pilot, including insights gained through interviews and online surveys with customers, local stakeholder engagement, and best practices identified through networking at the state and national levels with
organizations such as EEI, EPRI, ATE, Forth, leading industry representatives, and other peer utilities. As part of ongoing education and outreach efforts, the Company
presents information to local organizations and solicits feedback regarding electric transportation programs in a number of forums and methods including webinars, in-
person presentations, newsletters and bill-inserts, and will continue to do so as electric transportation markets and technologies evolve.
Following submission of the EVSE Pilot Final Report in October, 2019, the Company discussed lessons learned and high-level designs for the TEP with members of the joint TE stakeholder group in Washington State, including the Department of Transportation, Department of Commerce, and peer utilities, and presented to the group
on November 14, 2019, at an in-person meeting in Olympia. Following submission of the draft TEP on March 10, 2020, a presentation to this group was made on April 1, 2020, soliciting helpful comments and suggestions.
On December 19, 2019, a telephone Townhall was held with local Washington stakeholders including 36 commercial customers and local government
representatives. Key points about electric transportation and findings from the EVSE pilot were presented as well as ideas and feedback for the TEP.
Following several meetings with local service organiza-tions in 2018 and 2019, the draft TEP was discussed at a meeting with the Spokane Transportation Collaborative
held on April 3, 2020. Next steps with this group include reconvening in the fall of 2020 to solicit specific proposals for electric transportation projects benefiting low-income
customers in 2021, in partnership with local service organizations and resources.
In early 2020, several meetings were held with the Spokane Regional Transportation Council (SRTC), the City of Spokane, Urbanova, STA, and other local
government representatives in discussions regarding the TEP and the grant opportunity through Washington State’s Clean Energy Fund, administered by the Department of Commerce. A workgroup was formed and workshops were held with local stakeholders led by
SRTC, receiving strong support from stakeholders including the Spokane Tribe, Spokane International Airport, and the cities of Spokane, Spokane Valley,
Cheney, Liberty Lake, and Airway Heights. This culminated in a grant application with a multi-year, regional EVSE buildout plan for Spokane County,
including emphasis of innovation, education and outreach, and community and low-income benefits. The grant application proposals are in close alignment with
the TEP, utilizing Avista EVSE investments as well as STA electrification investments as matching funds. If awarded, grant funding would provide a significant boost
for beneficial EV adoption growth, electrified transit, benefits for low-income customers and learning in the region, and strong working partnerships and collabora-tion.
Regarding understanding and support for transit bus fleets, Avista and STA have held frequent meetings discussing electric transportation for several years, and Pullman Transit has been consulted as well to ensure the
TEP effectively supports electrification of transit buses.
Following the draft TEP submitted March 10, the Company received questions, comments and support
letters from a number of stakeholders (attached below). Followup discussions were held regarding these questions and comments with WSU, Climate Solutions,
Renewable Hydrogen Alliance, NW Energy Coalition, Public Counsel, and UTC staff. A number of concerns and clarifications were discussed and addressed,
including:
consideration for a residential EVSE lease or rebate program in the future
integrated management across TEP programs
more detailed modeling of distribution system impacts as more data and forecasts are gathered, including “clustering” effects
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close ties to the Company’s IRP and System
Planning
ensuring continued development of effective load management methods, particularly for residential charging
more robust reporting requirements
clarification of costs and benefits, especially as
related to the IRP calculations
consideration of hydrogen-powered EV technology developments
encouragement to pursue school bus electrification
strong support for education and outreach
very strong support for programs benefiting disadvantaged communities and low-income
customers, working with public transit in this regard, and the need to actively engage affected communi-ties and groups in development and implementation
of programs
In addition to stakeholder engagement in Washington, Avista has received many inquiries and requests from customers and stakeholders in Idaho regarding electric transportation issues and possible supporting programs
in the State of Idaho for Avista electric customers. The Company is in the early stages of discussion with policy and regulatory staff in Idaho, in support of the TEP which
must have a regional impact including programs appropriately tailored to Washington as well as Idaho territories, in order to be most effective.
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May 8, 2020
Washington Utilities and Transportation Commission
621 Woodland Square Loop SE
Lacey, WA 98503
RE: Avista’s Transportation Electrification Plan
Dear Commissioners:
I am writing to express my support for Avista’s Transportation Electrification Plan. I represent Transitions, a Spokane based non-
profit that works to end poverty and homelessness for women and children in Spokane through the operation of transitional hous-
ing sites, childcare facilities, and job training programs. Our actions as an organization are motivated by our four key values of Re-
spect for Human Dignity, Community, Growth and Wellness, and Justice.
New Leaf is a program within Transitions that provides job training in the food service industry for women with barriers to tradi-
tional employment. The New Leaf Kitchen & Café programs blend education, hands-on work experience, and supportive services
designed to help women gain the self-confidence and professional skills necessary for self-sufficiency. New Leaf has greatly benefit-
ed from Avista’s transportation electrification program through the acquisition of a Mitsubishi Outlander hybrid vehicle and a vehi-
cle charging station. As a food service enterprise, we are delivering wholesale and catering orders throughout the Spokane metro-
politan area on a daily basis, and are making frequent trips to food distribution warehouses and restaurant supply stores to pur-
chase supplies. Having an electric vehicle has reduced our fuel expenses, which allows us to redirect these funds toward our mis-
sion of ending poverty and homelessness. Further, we have used the vehicle to provide daily transportation between Hope House
(an overnight shelter for women) and Women’s Hearth, a day center for women experiencing homelessness. Many of these wom-
en are mobility challenged and face safety issues walking to and from these two facilities. The addition of this vehicle has allowed
us the capacity to make this daily journey safer and more secure for women experiencing homelessness.
Furthermore, studies have shown that low-income communities disproportionately experience ill-health effects of vehicle emis-
sions, such as asthma, cardio vascular problems and cancer due to living in proximity to busy transportation corridors and/or indus-
trial sites. The transportation electrificaton plan supports the widespread adoption of electric vehicles through investment in infra-
structure, encourages the adoption of electric fleet vehicles and lift trucks, and the use of electric buses along transit corridors. All
of these steps will benefit the health and wellness of our participants and other low-income individuals throughout the region, in
addition to the benefits we have enjoyed at Transitions.
Transitions has been fortunate enough to experience the benefits of vehicle electrification, and can attest to the cost savings that
come with a reduced dependence on gasoline. Widespread vehicle electrification will also have immediate and tangible benefits to
the health and wellness of the low-income communities we serve, and for these reasons we fully recommend the approval of Avis-
ta’s transportation electrification plan
Sincerely,
Jamie Borgan
Program Director, Transitions New Leaf
3128 N. Hemlock
Spokane, WA 99205
jborgan@help4women.org
509-496-0396
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Public AC Level 2 EVSE at Steam Plant Square in downtown Spokane (2018)