Environmental Leadership
November 1, 2023
New plan would advance Minnesota's EV future for all
New Transportation Electrification Plan to deliver cleaner air, cost savings
Transportation is the largest source of carbon emissions in the United States. As we drive toward a carbon-free future, our clean transportation vision will help everyone in the communities we serve experience the benefits of electric transportation, whether they own an EV, use public transit or simply stand to benefit from improved air quality.
On Nov. 1, 2023, Xcel Energy proposed a new Transportation Electrification Plan (TEP) to the Minnesota Public Utilities Commission to support our customers throughout their electric vehicle journey. The plan proposes new and enhanced electric vehicle programs to make charging at home and on the go easy, fast and more affordable for customers.
Leading the way to deliver cleaner air and cost savings
Xcel Energy’s transportation vision is to enable one out of five vehicles to be electric in the areas we serve by 2030, which would reduce carbon by nearly five million tons annually and save customers billions in fueling costs. By 2050, our vision is to provide the infrastructure and energy to run all vehicles in our service area on carbon-free electricity or other clean energy. Today, plugging in with Xcel Energy’s clean, affordable energy is the equivalent of about $1 per gallon when charging at home during off-peak hours.
Here are some of the programs and services laid out in our proposed plan:
Home wiring rebate
New rebates will help offset the upfront costs for installing infrastructure to support Level 2 EV charging at home or the costs of a qualifying Level 2 charger. Market rebates of $500 and enhanced rebates of $1,200 will be available to qualifying customers, and customers will be required to participate in a managed charging program to receive the rebate. We have launched similar rebates in Colorado and New Mexico.
Expansion of EV subscription service pilot
The pilot, which provides a flat monthly subscription price for a Level 2 charger and off-peak EV charging at home, has been very successful in encouraging EV charging to take place during off-peak hours, with more than 90% of all charging activity occurring overnight. Participation in managed charging is beneficial to our customers and the energy grid, so we propose to make minor modifications to the pilot and launch it as a permanent program option for customers. The subscription service will be offered as a new customer option in our existing EV Accelerate At Home program.
Electric school bus demonstration
The demonstration will provide EV charging infrastructure support for electric school buses in Minnesota’s school bus deployment program. It will include testing vehicle-to-grid (V2G) technology through demonstrations with two buses during summer months. Testing V2G technology will help the company and the industry learn about how EVs can be used to support the grid during peak operating times, such as hot summer months, by sending energy from the bus to the grid.
Expanded advisory services
Our advisory services help create awareness for EVs, their benefits and managed charging programs. These services, such as sponsorship of public and community events, our Online EV Advisor Tool and auto dealer partnerships help make it easy for people to learn about EVs and how to charge them. Our proposed expansion also specifically seeks to promote EVs in disadvantaged communities through efforts like targeted event sponsorships and providing resources in multiple languages.
Bridge funding for fleet electrification and public charging
Xcel Energy has been operating two pilot programs to encourage fleet electrification and buildout of public charging infrastructure. Although both pilots have used all approved funding, we continue to see significant interest in participating from customers and communities. We have proposed additional funding that will allow us to continue to support the market while we evaluate the pilot programs' performance and develop a permanent plan to help facilitate commercial EV charging. The longer-term objective is to offer permanent programs such as those we have successfully launched in other states, assuming pilot data supports this approach.
Public fast-charging analysis
As part of this filing, we analyzed the public fast-charging market in our service territory to identify what it will take to support EV adoption at its current anticipated growth rate, while at the same time considering the State of Minnesota's goal to have 20% of all light-duty vehicles be electric by 2030. We also assess the pros and cons of different options we could use to support this market. This analysis will help inform future steps for developing new public charging to help meet the growing need for charging on the go. Some key findings:
- By 2030, at current rates of EV growth, it is estimated the company's service territory in Minnesota will need approximately 1,200 more fast charging ports than it has today.
- If the state achieves its goal to have 20% of light-duty vehicles be electric by 2030, about 3,900 more DC fast charging ports will be needed than are available today in Xcel Energy's service territory.
- Since May, most major vehicle original equipment manufacturers (OEMs), charging equipment manufacturers and public fast charging network providers in the United States announced plans to begin using Tesla's North American Charging Standard (NACS) charging connector design. Tesla has also announced plans to open its Supercharger network to various non-Tesla drivers.
We also worked with public charging companies and fueling retailers to understand their plans to support the market in Minnesota. Both groups noted financial concerns as top barriers to installing public EV charging stations in the market. At this time, we believe utility-owned EV supply infrastructure with a rebate or partnership model supporting fast chargers is the optimal path to increase public fast charging in Minnesota, given recent EV market developments this summer. Xcel Energy has seen success with providing EV supply infrastructure for a variety of commercial charging needs and with providing rebates through EV programs in multiple jurisdictions.
Learn more about our vision and offerings at xcelenergy.com/EV.