Attachment A: Summary of Multifamily Electric Vehicle Rate Management Options Scale of the Issue
The primary issue of concern, as it relates to the recently adopted electric vehicle (EV) reach code for new multifamily developments, is maintaining reasonable EV charging costs in new multifamily developments which will be required to have EV charging outlets (at minimum) in every residential parking stall as of July 1, 2024.
The full cost to a resident for charging their EV can be highly variable and dependent on the specific type of EV charging configuration employed at a multifamily development. Factors which may impact EV charging costs include: the specific EV rate applied, time-of-use, energy costs, charging speed, and any special charges (e.g., EV charger location, demand, per session, or idling fees/charges). Below is a summary of information obtained to date to understand the scale of the issue in two different scenarios wherein a multifamily complex has EV charging capabilities at each residential parking stall but no direct wiring:
1. Property Owner/Manager Determines Rates Applied for EV Charging: A property owner/manager may purchase and install third-party EV charging equipment, pay for online services to monitor usage and collect charges, and set the charging rates and parameters themselves. Based on an initial EV rate and networking fee cost analysis prepared by TRC, the annual cost difference between a direct-wired/lowest electric vehicle (EV) rate (est. $711/yr.) and PG&E’s commercial EV rate (est. $841/yr.) or PG&E’s standard commercial rate (est. $1381/yr.) is $130-$670, although the latter rate with the largest cost difference is not likely to be how a site would be configured. Based on those estimated costs which assume operational cost recovery, EV charging utility costs could be 18-94% more expensive per year without direct wiring. This analysis is based on utility rate and time-of-use assumptions, which may change over time particularly as the City is interested in encouraging daytime charging.
2. Third-Party Determines Rates Applied for EV Charging: A third-party EV charging equipment company may install, manage, and set EV charging rates at a multifamily complex via an agreement with a property owner/manager. The City does not currently have data or analysis around the typical cost implications of this scenario.
In either scenario, or combination thereof, the rates charged to residents are unregulated and may be set in a manner to attract tenant with lower EV charging rates, to achieve cost recovery (which may include equipment, networking services, etc.), or to even obtain some level of financial return. Property owners/managers may also set other fees (e.g., monthly parking space costs, rents) which seek to recover EV charging or other costs. More City research is required to better understand the most common third-party charging scenarios in place in multifamily complexes in San Jose and their associated EV charging rates. It's important to note that an EV may still have a lower operational cost per year for a multifamily resident than a gas car, even with potentially higher EV charging costs, given their overall lower annual maintenance costs.
Options for Maintaining Retail Electricity Rates for EV Charging in Multifamily Complexes
Below are the City’s findings to-date and next steps on options available to maintain the lowest retail electricity rates for EV charging in multifamily complexes:
Category Option Description Current Assessment City Next Steps Technology
Options
240 Volt
“Quickdisconnect”
technology
(such as
PolarisTM
connectors)
Hubs that
allow
electric
wires to be
re-routed to
different
electric
panels
• Limited known
examples of
installation in a
multifamily building
for this purpose
• City roughly
estimates the
installation cost for
additional equipment
at $25-100/space,
where feasible
• City roughly
estimates the
labor/permit cost at
~$300-400 each time
a space needs to be
assigned to a new
unit, unclear if
additional
complexities or cost
with re-routing
Continue research,
with consultant
support pending
available staff
capacity and
funding, on:
• where this
technology has
been applied in
multifamily
buildings (e.g.,
number of units,
how long),
• full cost to
operate/ re-route,
applicability to
multifamily
buildings of
varying sizes,
• additional
requirements in
code language to
accommodate
(e.g., space and
electrical
infrastructure
requirements),
and,
• any other
restrictions.
PG&E
virtual net
metering
A
networked
sub meter is
placed in
EV
charging
spaces and
can be
billed
• Both master and
submetered account
holders may need to
agree to terms to
proceed
• Unclear how/which
rate could be applied
(i.e., if different
Conduct follow-up
meeting/
communications
with PG&E staff to
better understand
capabilities,
restrictions, etc.
directly to a
tenant
without the
need for
wiring
from master
account)
• Question as to
whether this could
apply to low-income
residents who
qualify for
CARE/FERA rates
Rate
Management/
Policy
Options
City rate
management
mechanism
(e.g.,
franchise,
policy,
ordinance)
City may
adopt a
legal
mechanism
for
restricting
rates above
retail or the
cost of
service
No known examples of
a similar policy from
other cities
• Develop a scope
of work and
obtain a cost
quote for the
collection of
third-party
charging costs
Pending the thirdparty charging costs
findings, the City
can determine next
steps and funding,
e.g., conducting an
initial vetting of
legal restrictions on
City policy options.