This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Variable Utility Rate Plans For Electric Vehicle Drivers Will Have Little Impact, According To Pike Research

For electric utility companies, the increasing market adoption of plug-in electric vehicles (PEVs) represents both a significant business opportunity and a series of challenges. Many observers have suggested that variable rate plans specific to PEV owners could be a lucrative business model for utilities. According to a new report from Pike Research, a part of Navigant’s Energy Practice, however, data suggests that such plans may have little impact because the difference in price to the consumer may not justify the effort and risk associated with creating a new rate program for electric vehicle (EV) drivers.

“Plug-in electric vehicles are especially promising for utilities considering the tendency of electric vehicle owners to charge at night during off-peak hours, thus using capacity that is currently underutilized,” says research director John Gartner. “But specific rates for charging electric vehicles are unlikely to greatly influence consumer charging habits, especially when variable time-of-use plans are already in place.”

The growth of the PEV market brings a complex set of other challenges, as well, according to the report. Peak demand will spike if and when clusters of electric vehicles plug in at the same time. If their batteries are depleted, plug-in hybrid vehicle owners are likely to charge regardless of peak pricing because in most areas, electricity as a fuel will always be cheaper than gasoline. The vehicles also create a need for utilities to engage with a new set of previously unfamiliar stakeholders, including carmakers, dealers, fleet managers and passionate EV owner groups. Most importantly, PEVs create a set of unknowns about electricity consumption and infrastructure impacts for utilities, in addition to a temptation to respond to anticipated problems that do not necessarily pose actual risks to the grid or to a utility’s business process.

The report, “Best Practices for Utilities to Prepare for Electric Vehicles”, includes recommendations based on data collected thus far on PEV power consumption, and highlights the lessons learned from many of the leading utilities that have been involved in providing electricity for vehicle charging. Based on these findings, the brief provides best practice recommendations to enhance customer service in engaging with consumers. Also included are guidelines for interacting with regional EV groups, PEV dealers, and local officials, to enable utilities to create a positive experience for PEV owners while receiving the maximum benefit from this new revenue source. An Executive Summary of the report is available for free download on the Pike Research website.

About Pike Research

Pike Research, which joined Navigant’s global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.

About Navigant

Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.

* The information contained in this press release concerning the report, ““Best Practices for Utilities to Prepare for Electric Vehicles”, ” is a summary and reflects Pike Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.



1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,146.55 +14.58 0.09%
S&P 500 2,001.15 +2.17 0.11%
NASDAQ 4,560.3180 +7.5590 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs