Anticipating a lot of alternative fuel vehicles in the coming years, particularly electric vehicles (EV), California regulators decided Thursday to undertake a statewide investigation of the potential impact on the state’s major energy utilities and the electric and natural gas infrastructures. The California Public Utilities Commission (CPUC) will examine what tradeoffs may need be made to ensure energy infrastructure reliability and meeting climate change goals.

CPUC President Michael Peevey called the action “both timely and necessary,” before the five-member commission unanimously agreed to begin a statewide initiative. Originally drafted as mostly a EV-focused proceeding, the natural gas vehicle lobby appeared before the CPUC to urge equal emphasis for natural gas-powered vehicles, which it stressed emit 20-30% less greenhouse gas (GHG) emissions than standard gasoline-power vehicles.

“Many automakers — both foreign and domestic — will be introducing to California roadways electric-charged vehicles in the next few years,” Peevey said. “As a result of this market development, we will consider tariffs, infrastructure, and policies needed for investor-owned utilities to prepare the electricity system in a consistent way for the projected statewide market growth of light-duty passenger plug-in hybrid electric vehicles and battery electric vehicles throughout California.”

The regulators set as an “immediate goal” to facilitate development of more EV charging infrastructure and review existing electric vehicle utility tariffs. “California’s current rate design and tariffs are not conducive to widespread adoption of EVs,” Peevey said. “Our first order of business will be to address rate design that promotes alternative vehicle use.”

Noting that the transportation sector is the fastest growing source of GHG emissions, Commissioner Rachelle Chong said “electric and natural gas vehicles present a major opportunity to reduce these emissions.”

Regulators stressed that the initiative being undertaken is to develop “consistent statewide policies and standards” designed to guide and encourage EV metering, home EV charging infrastructure, commercial and public charging infrastructure, tariff schedules, and, if advisable, incentive programs.

Commissioner Timothy Alan Simon, who is the lead CPUC member on natural gas issues said, “It is essential that we maintain competitive neutrality and avoid implicitly picking a ‘winner’ in this process. Natural gas is the cleanest and most abundant alternative domestic fuel.”

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