Pay-as-You-Charge: Detroit Edison Unveils Monthly Rate for EV Charging

Power suppliers across the nation are bracing for a wave of plug-in hybrid and electric vehicle launches in the near future. To prepare, metropolitan energy suppliers are investigating strategies to effectively price out electric power, and answer the question: How much would you pay for a full charge?

Detroit Edison, a leading utility in the Detroit metro area, has come up with a two-pronged solution to battery recharging. Under one model, the utility company will offer discounted rates for plug-in hybrid owners who recharge overnight, from 9 to 11 p.m. The other model will set a flat, monthly rate of $40.

The incentivized pricing scheme precedes mainstream adoption of plug-in hybrids and pure electric vehicles. Detroit Edison is anticipating increased demand in the short term, with the upcoming introductions ofthe Chevrolet Volt plug-in hybrid and EVs like the Nissan Leaf.

“We view — as do a lot of people — electric vehicles as something of the future,” said Edward Falletich, Detroit Edison pricing manager. “What this does is let us be privy to how much power is used to charge a vehicle.”

Detroit Edison will also help cover the cost of installing residential charging stations, which typically cost around $600. According to The Detroit News, General Motors — eager for the launch of the Chevrolet Volt — worked with Detroit Edison to determine the pricing. In a similar arrangement, Nissan is working with the municipality of San Diego prior to the launch of the Leaf.

Would you opt in to such a pricing scheme? How much would you pay to fill ‘er up?

Source: The Detroit News


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