Attachment: Summary of Multifamily Electric Vehicle Rate Management Options Options for Maintaining Retail Electricity Rates for EV Charging in Multifamily Complexes: Below are the City’s findings to-date and next steps, led by the Energy Department, on options available to maintain the lowest retail electricity rates for EV charging in multifamily complexes:
Category Option Description Previous
Assessment
Status Update 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 rerouting
Evaluation of quick
disconnect technology
will be included as part
of the evaluation in
updating the City’s
reach code for the next
code cycle. However,
staff generally believes
that virtual metering is
the more viable way
solve the metering
issue.
Continue research, with
consultant support
pending available staff
capacity and funding, on:
1. where this technology
has been applied in
multifamily buildings
(e.g., number of units,
how long);
2. full cost to operate/ reroute, applicability to
multifamily buildings of
varying sizes;
3. additional
requirements in code
language to
accommodate (e.g.,
space and electrical
infrastructure
requirements); and,
4. any other restrictions.
Category Option Description Current
Assessment
City Next Steps Status Update
Technology
Options
PG&E virtual
net metering
A networked
submeter is
placed in EV
charging
spaces and
can be billed
directly to a
tenant
without the
need for
wiring
• Both master and
sub metered
account holders
may need to
agree to terms
to proceed
• Unclear
how/which rate
could be applied
(i.e., if different
from master
account)
• Question as to
whether this
could apply to
low-income
residents who
qualify for
CARE/FERA
rates
Conduct follow-up
meeting/
communications with
PG&E staff to better
understand capabilities,
restrictions, etc.
PG&E launched a
new EV submetering
pilot that may work
for residents of multifamily properties to
access EV rates
without direct wiring.
At this time, it is
limited to certain
equipment, but
rebates are available
for those willing to
install a qualifying
charger or submeter.
Energy Department
staff will meet with
PG&E to learn more.
Category Option Description Current
Assessment
City Next Steps Status Update
Rate
Management/
Policy
Options
City rate
management
mechanism
(e.g.,
franchise,
policy,
ordinance)
City may
explore the
options for a
legal
mechanism
for restricting
rates above
retail or the
cost of
service
No known
examples of
a similar
policy from
other cities
Energy Department
staff will continue to
monitor charging
rates at multi-family
properties,
particularly in lowincome and
disadvantaged
communities, on a
semi-annual basis
and track the efforts
of other
municipalities to
ensure multi-family
properties are
charging fair rates.
If San José Clean
Energy (SJCE)
develops future
programs funding
EV charging
installations owned
by third parties, it
will research and
recommend as
appropriate rate
restrictions and/or
reporting
requirements to
create more
SJCE conducted an analysis of
charging rates using a sample
of 45 multi-family properties
that have EV charging for their
tenants, three of which were
located in 12 census tracts the
state defines as disadvantaged
communities. On average, the
cost to charge was $0.34 per
kilowatt-hour (kWh), which is
lower than PG&E's residential
peak and part peak pricing and
comparable to their $0.30
cents/kWh residential off- peak
pricing.
It's important to note that the
pricing structures vary from site
to site. Most charge users per
hour or per kWh, which can be
standardized using the typical
output of a Level 2 charger.
However, in some cases, users
pay a fixed monthly fee for the
parking spot and charger.
While this sample indicates that
charger fees are broadly in line
with PG&E electricity rates, it is
difficult to come to a conclusion
due to the lack of data for
private multifamily chargers.
Background
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 transparency and
ensure that these
chargers are fairly
priced.
These are often not listed on
publicly available data sets and
apps and even property
managers can be unsure of the
rates.
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.