2.3. ERMUSR 09-10-2019 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Tom Sagstetter—Conservation & Key Accounts Manager
MEETING DATE: AGENDA ITEM NUMBER:
September 10, 2019 2.3
SUBJECT:
American Public Power Association's Demonstration of Energy& Efficiency Development
Program Grant Final Report
ACTION REQUESTED:
Receive the APPA DEED Grant Final Report
BACKGROUND/DISCUSSION:
Elk River Municipal Utilities received an American Public Power Association Demonstration of Energy&
Efficiency Development(APPA DEED) Grant for$40,000 in December 2016.The grant enabled ERMU to
research the application of time-of-use rates in public charging stations,and the feasibility of electric
vehicles in municipal fleet operations. It also allowed ERMU to install public charging stations for the
community, and build practical knowledge for other public power utilities to build on. ERMU was one of
the leaders in promoting electric vehicles and charging infrastructure in the state, and continues to
serve as a resource for other utilities and policy makers seeking to implement electric vehicle initiatives.
Attached is the final report and summary abstract for your review.The report is also available on the
APPA DEED web site for other public power utilities to learn from.The final invoice for$10,000 has been
submitted and the payment is expected within the next few weeks.
ATTACHMENTS:
• ERMU Final Report for APPA DEED Grant
• ERMU Summary Abstract for APPA DEED Grant
Page 1 of 1
39
Final Report for CG-2036 - Elk River Municipal Utilities
Project Title:
Elk River Municipal Utilities Partners with City of Elk River and Local Businesses to Provide Fast
Electric Vehicle (EV) Charging as Part of Green Step Cities Initiative
General Overview
The final project report will provide insight to other public power utilities about many aspects
of the growing electric vehicle market.The areas of focus for this grant were:
• Incorporating time-of-use rates into public charging stations
• The feasibility of electric vehicles into municipal utility and city fleets for daily
operations
• Increase installation of privately-owned charging stations that are utilize time-of-use
electric vehicle charging rates
• How to evaluate, purchase, and install public charging infrastructure owned and
operated by a public power utility
Another key aspect of this report focuses on the relationships/partnerships needed to
increase the awareness and viability of electric vehicle technology in a rapidly changing
transportation marketplace.
The marketplace is changing rapidly on two fronts.The first relates to the hardware of charging
infrastructure and types of electric vehicles being developed.The second is on the policy side.
Electric vehicles have become the technology of choice to decrease greenhouse gas emissions.
By incorporating extensive renewable electric energy production into the grid, electric energy is
now a clean option in terms of greenhouse gas emissions. In many areas, organizations are
promoting the shift from petroleum or natural gas to electricity.This fuel switching is known as
Beneficial Electrification, a relatively new phenomenon based on the environmental value of
using electricity that incorporates a cleaner energy generation resource mix.
Over the two years of this project,the Elk River Municipal Utilities encountered a number of
unexpected situations. One of the first challenges involved the site of a Direct Current Fast
Charger (DC Fast Charger).The convenience store owner that Elk River Municipal Utilities had
originally partnered with for the installation was in an area that was under road reconstruction.
This reconstruction required ERMU to reconsider the site location. An interesting opportunity
came from a local automotive dealership.They were helpful in scheduling test drive events and
1
40
provided marketing resources, but the local dealership was not able to stock or service electric
vehicles.This limited the ability of Elk River Municipal Utilities to provide local educational
opportunities.To overcome this challenge, ERMU worked with statewide and national user
groups, and non-governmental organizations such as the Great Plains Institute, American Lung
Association, and Minnesota Pollution Control Agency to provide educational opportunities
locally.
Social media experienced tremendous growth as a result of this project. When applying for the
American Public Power Association grant, Elk River Municipal Utilities did not have a significant
social media presence.The original plan was to leverage the City of Elk River's social media
platform for the electric vehicle program. Early on it was determined that there was great need
for Elk River Municipal Utilities to increase its social media presence and create a new brand for
the program to be recognizable and successful. Electric vehicle owners are technologically
advanced and it's almost a requirement that an electric vehicle owner have a smartphone
connected to social media to receive public charging network information. Elk River Municipal
Utilities created the EV/ER Power Your Future logo and tagline for marketing purposes.
The results of the Electric Vehicle Suitability Assessment completed by Fleetcarma resulted in
the evaluation of two electric vehicles. Elk River Municipal Utilities purchased a battery electric
Chevrolet Bolt, and the City of Elk River leased a plug-in hybrid Mitsubishi Outlander.The
suitability assessment was completed after tracking the driving patterns of 20 vehicles for nine
months.The data tracked included: daily driving distances, idle times, starting and stopping
tendencies, and average speeds.The results of the suitability assessment provided analytical
data that supported incorporating electric vehicles in the Utilities and City fleets. One key
finding was that the Utilities and City would experience an estimated a total cost of ownership
savings of approximately$76,000 if all eight vehicles best suited for electrification were
converted.
The suitability assessment was a great starting point for the electric vehicle evaluation, but
there were a couple of areas that needed to be addressed operationally.The cost of charging
equipment was not included in the total cost of ownership study.This could be a significant
cost depending on the type of charging equipment purchased.There were also challenges with
the types of electric vehicles that were listed as options to replace pickup trucks. Based on how
field staff uses their pickup trucks, changing to a plug-in hybrid or battery electric was not
feasible for towing and off-road needs.
The suitability assessment was a valuable tool to determine the feasibility of implementing
electric vehicles and how to manage fleet purchases in the coming year to utilize more electric
vehicles, either battery or plug-in hybrid.
2
41
The implementation of Time-of-Use (TOU) pricing was a great benefit to customers charging at
home.TOU pricing promotes load management by providing a price signal that incentivizes
customers to modify their behavior to use energy during off-peak times. Including a connection
fee with TOU rates at public charging stations was not well received by the electric vehicle
community.The connection fee is especially prohibitive for customers who are running errands
and would like to "top up" their battery with a few kWh.The cost per kWh when topping up is
far too expensive and customers will simply bypass the charger and charge at home. Based on
the charging patterns documented in this report, customers greatly prefer to charge at home,
utilizing the lowest TOU rate, and only charge at public stations if it's inexpensive,free, or
absolutely necessary. The pricing structures that had the best success at the public charging
stations in Elk River, Minnesota were either a flat fee with a per hour charge minimum or a
price per kWh.
The entire electric vehicle program, including public and private charging infrastructure,
purchase and lease of an electric vehicle, and implementation of Time-of-Use rates, has
provided a wealth of knowledge for Elk River Municipal Utilities and the City of Elk River staff
members to share with others.The sharing of practical, hands-on knowledge through
organizations such as Green Step Cities, Minnesota Municipal Utilities Association, American
Public Power Association, Minnesota Drive Electric, and others allowed Elk River Municipal
Utilities to increase the awareness of electric vehicles and their value to utilities.
Purpose
The goal of the Electric Vehicle charging program was to leverage the existing partnership with
the City of Elk River to increase local and statewide awareness of the benefits of Electric
Vehicles,Time-Of-Use (TOU) rates, and learn from experience about public charging systems
and associated rates.
Utility Name and Address
Elk River Municipal Utilities
13069 Orono Parkway
P.O. Box 430
Elk River, MN 55330-0430
Utility Description
Elk River Municipal Utilities (ERMU) is located in central Minnesota;—ERMU service territory
encompasses 45 square miles situated on two major highways that serve as a gateway to
vacation destinations to the north and northwest of Minneapolis/St. Paul. Since 1997, ERMU
3
42
and the City of Elk River have been partners in promoting our community as Energy City. The
City of Elk River received this designation in 1997 from the State Legislature because of its
commitment to renewable energy, energy efficiency, and community- based sustainable living
practices.
ERMU focuses on audiences that include business groups, local residents, local governments,
other electric utilities, and area youth organizations. These outreach and educational
opportunities are delivered during presentations to students at area demonstration sites,
including a landfill gas electric generation facility(3.2 MW), an environmental education center,
wind turbine (.66 MW), and LEED certified buildings.
Autonomously governed from the city, the Elk River Municipal Utilities commission consists of
five board members appointed by the Elk River City Council. ERMU provides electric services to
11,983 customers and water services to 5,140 customers located in the communities of Elk
River, Otsego, Dayton, and Big Lake Township. In addition, ERMU bills and collects payments for
city services including garbage, recycling, organics, sewer, storm water, and franchise fees.
2018 Elk River Municipal Utilities
Statistics
Electric Number of
Customer Segments Energy kWh
Customers
Residential 10,422 95,811,134
Commercial 1,333 29,289,955
Industrial 228 206,022,922
Total 11,983 331,124,011
Electric Peak Day Demand 66.4 MW
Water Customer Segments Number of Gallons of
Customers water
Residential 4,536 356,279,000
Comm./Industrial 604 376,008,000
5,140 732,287,000
4
43
Water Peak Day 4.8 Million Gallons
Water System Capacity 95 Million Gallons
Key Personnel & Phone Numbers
Name Organization Title Phone
Troy Adams Elk River Municipal Utilities General Manager 763.441.2020
Calvin Portner City of Elk River City Administrator 763.635.1000
Conservation and Key
Tom Sagstetter Elk River Municipal Utilities Accounts Manager 763.441.2020
Communication and
Michelle Executive Administrative
Canterbury Elk River Municipal Utilities Manager 763.441.2020
Tony Mauren Elk River Municipal Utilities Communication Specialist 763.441.2020
Amanda Bednar City of Elk River Environmental Coordinator 763.635.1000
City of Elk River Cable
Jacob Pace City of Elk River Coordinator 763.635.1000
Don Horvath Andy's Electric Master Electrician 612.669.6195
Brian Levin ChargePoint Sales Director 847.903.6652
Brian Bakalyar Werner Electric Supply Energy Supervisor 507.285.6201
Project Description
Elk River Municipal Utilities (ERMU) will develop an electric vehicle program that will shift the
market from the standard internal combustion engines to the electric vehicle. ERMU will do this
by reducing public anxiety about electric vehicle technology through installing public charging
stations and working closely with the City of Elk River to take advantage of the community
outreach and educational opportunities with the city's Energy City Commission and the Green
Step Cities Initiative. In addition, ERMU will provide incentives to customers who purchase
Level 2-charging equipment that is metered separately to allow for Time-of-Use (TOU) rates.
ERMU will also conduct a fleet vehicle assessment in partnership with the City of Elk River to
determine the feasibility of operating electric vehicles and how to incorporate the electric
vehicle into the existing fleet.
The electric vehicle program's main objectives are to educate, implement strategies, and share
results. ERMU will develop a community-centered brand identity and a communication plan to
launch the electric vehicle program.The customer education aspect of the program will focus
on reduced fuel costs, operational cost reductions, and environmental benefits. From a utility
perspective, the benefits are all of the above, plus additional sales to the utility and increased
5
44
PILOT to the City. By conducting the FleetCarma Suitability Assessment, ERMU and the City of
Elk River will be able to provide meaningful, measured results that will determine if
incorporating electric vehicles into the fleet is economically and practically feasible. Through
the partnerships, ERMU will share the program's results and ongoing lessons with all interested
parties, local and national.
Diagram/Schematic
4
UTILITIES
INCREASED
ENERGY
SALES
increased Payment Use of
in Lieu of Taxes and Renewable
Fuel Revenue Energy
Stays Local p
Electric
Vehicles
DECREASED REDUCED
TRANSPORTATION cleaner Air in GREEN HOUSE
COSTS Urban Areas GASES
'� rp
CUSTOMER ENVIRONMENT
6
45
Project Dates
The original term of the project was for 16 months, beginning in November 2016 and
concluding in March 2018. Elk River Municipal Utilities applied for a project extension in June of
2017 and received approval for a May 5, 2019 completion date. A request for extension was
made when the original location for the DC Fast Charger had delayed availability because of a
major road reconstruction project and site developer issues. A new location for the DC Fast
Charger was selected and the unit was installed in November 2017.
Alternatives
Vendor for Public Charging Equipment
Elk River Municipal Utilities evaluated several vendors for public charging equipment. ERMU
selected ChargePoint because they not only provide the charging equipment and a separate
customer service platform for billing and tracking, but they also have the largest network in the
country, with more than 56,000 charging stations. In addition,for an extra fee Elk River
Municipal Utilities was able to purchase a two-year service plan that covered parts and labor
for any equipment or software upgrades needed.
Charging Site Locations
The site selection for the public charging stations was an important element of this project. It is
typical for municipal utilities to locate public charging stations in locations that are easily
accessed by residents and visitors to the community. Elk River Municipal Utilities had the goal
to partner and build a relationship with a potential opponent to electric vehicle charging
stations by selecting an existing convenience store/fuel station on a high traffic corridor as the
location for a DC Fast charger. Receiving an extension on the grant was critical in allowing
ERMU time to select an alternative site that met the desired criteria.
Public Charging Stations at Businesses
Early on ERMU contacted local retailers to explore partnerships with them to install public
charging stations.This opportunity was attractive to some businesses, but none of them were
interested in actually installing the charging stations. Moving forward, ERMU will again engage
these customers to determine if there is now the desire to install the charging equipment after
two additional years of growth in the EV marketplace. ERMU will explore incentivizing the
installation instead of installing utility-owned stations.
7
46
Time-Of-Use (TOU) Rates and Connection Fees
Implementing Time-of-Use (TOU) rates at public charging stations was an important component
over the grant period. In the early months of offering public charging, ERMU offered a per hour
fee for charging and then changed to a connection fee and TOU pricing that utilized on-peak
and off-peak rates.The connection fees were not attractive to electric vehicle drivers because,
in general, the charging sessions are short and the connection fee plus the TOU rate per kWh
made the public charging too expensive. Another realization was that most customers were not
able to capitalize on the off-peak charging rate from 11 p.m.to 7 a.m. because they would be
charging their vehicle at home. Based on electric vehicle user feedback, ERMU abandoned the
TOU rates and connection fees at the public charging stations in favor of a simple per kWh
charge.
Purchase and/or lease of electric vehicles
Elk River Municipal Utilities elected to purchase a battery electric Chevrolet Bolt.The decision
to purchase a Bolt was based on the results of the Fleetcarma Electric Vehicle Suitability
Assessment.The Assessment provided analytical data that showed ERMU could benefit
significantly by incorporating electric vehicles into its fleet.The driving factors that allowed for
the purchase were a lower cost of ownership compared to an internal combustion engine and
the need to lead by example. On a strategic level, ERMU decided to purchase the Bolt so they
could share their battery electric vehicle driving experience with others. The City of Elk River
took a different approach by leasing a plug-in hybrid Mitsubishi Outlander.The City elected to
lease because there were constraints in the fleet budget, and they believed that with rapidly
changing technology, a three-year lease would be a safer option.The City had concerns about
range anxiety. Range anxiety is the concern of an electric vehicle driver that the battery will run
out of power before the final destination or charging station is reached.The other concern was
the need for a vehicle with all-wheel-drive for off-road uses.
Results up to the Final Report
The partnership between Elk River Municipal Utilities and the City of Elk River to provide public
and private charging infrastructure and the implementation of Time-of-Use (TOU) rates has
established Elk River as a leader in the electric vehicle community. The ability to partner with
the City of Elk River has allowed for a much greater reach in educating other communities
about incorporating electric vehicles into daily fleet operations, reducing operational costs for
fleet vehicles, improving community outreach, reducing the environmental impacts of
transportation, and increasing electric sales and the associated payment in lieu of taxes to the
City.
8
47
The Benefits of Marketing and Social Media to EV Program and Utilities
An important step to consider early on is the branding and marketing plan for an electric
vehicle program.The marketing program should be identifiable to your community and must be
promoted through social media. Electric vehicle enthusiasts use mobile applications on
smartphones to get a great deal of information for the operation and charging of their electric
vehicle. The more detail included in the marketing plan the better. For the purposes of this
grant, the original marketing plan was not detailed enough and caused some considerable
rework.
Marketing efforts began with the development of a new brand for public charging equipment
and customer-owned installations. Early on in the branding development process, Elk River
Municipal Utilities determined that due to the scope and reach of the project, a professional
marketing firm should be hired to assist in the development. As part of this grant,the
marketing firm developed the EV/ER (Electric Vehicle/Elk River) logo with the tagline Power
Your Future.The logo and tagline were registered and trademarked in the state of Minnesota.
The marketing firm also created a comprehensive marketing plan that included a brand launch
and the creation and/or enhancement of social media profiles to promote EVs and other utility
communications.This also started the process of rebranding Elk River Municipal Utilities.
Electric vehicle customers use smartphones to establish charging accounts with different
vendors to activate public charging stations as well as link drivers to maps and car charging
information at the touch of a button. Customers can check their car charging status or the
queue status for their car waiting to be charged. Smartphones and social media are essential
tools to EV ownership. Because the electric vehicle community is generally digitally connected,
ERMU enhanced their social media plan to include information on the electric vehicle program.
Social media is also the tool that allows ERMU to reach beyond our local community to
promote our public EV charging network. Without social media and the various smartphone
applications, drivers would not know that ERMU offers charging stations or where they are
located.The social networks and smartphone applications allow any EV driver to locate our
stations and provide a map to get them to the exact location. ERMU participates in public
information websites that help EV drivers locate our public stations, including ChargePoint,
Plugshare, and the US Department of Energy Alternative Fuels Data Center.
To have a successful EV programs and increase awareness of the technology, ERMU needed to
expand market reach beyond bill inserts, the web/internet, and news articles.To educate
customers and the public, ERMU needed to create smartphone applications and a new brand to
provide EV drivers on the road access to information instantly from anywhere.
9
48
Residential and Commercial Program Activity
Elk River Municipal Utilities started actively marketing the electric vehicle program in 2016.
Prior to the aggressive marketing in 2017, there were customers participating in a private
installation (in-home charging) program.The number of accounts has grown from two accounts
in 2015 to nine active residential accounts in 2019. ERMU has one commercial customer that
participated in the rebate program with the purchase of a Level 2 charger at the Ford
dealership. Initially, the residential electric vehicle program had a load control component.
However, customers expressed concerns about not being able to utilize their 240 volt charger
during on-peak hours when they needed additional energy. Based on customer feedback,
ERMU changed from direct load control and structured charging times to Time-of-Use (TOU) in
January 2017. For the residential electric vehicle program, Elk River Municipal Utilities upgraded
metering for customers to allow for TOU rates.
Time-of-Use Rates Pricing and Load Control for In-Home and Public Charging
Stations
Elk River Municipal Utilities initiated in-home charging rates back in 2013, but they were not
truly Time-of-Use (TOU). ERMU modeled the residential electric vehicle program after existing
load management programs in place for water and space heat.These EV rate programs utilized
direct load control and separate metering equipment.The early program parameters only
allowed the customers to charge their vehicles from 11 p.m. to 7 a.m. If they needed additional
energy during other times, they had to charge on a 120 volt wall outlet or install a second 240
volt charging unit not connected to the off-peak metering installed for the program.
As the program started to grow, customers shared that it would be beneficial to be able to
charge all hours of the day. At this point, we implemented TOU rates. ERMU established two
time periods for billing energy use: on-peak, from 7 a.m. to 11 p.m. Monday through Friday,
and off-peak from 11 p.m. to 7 a.m. Monday through Friday weekends, and holidays.The
transition to TOU rates increased flexibility to let customers charge when they wanted or
needed to and received favorable feedback from program participants. Beginning in 2019,
ERMU changed the on-peak hours to 10 a.m. through 10 p.m. This is a decrease of four on-peak
hours per day, Monday through Friday.The change was communicated individually to each
participant. ERMU also implemented a bill presentation change at this time so customers could
see exactly when and how much energy they were using to charge their electric vehicle during
on-peak and off-peak hours.
10
49
Readings k
i44 i;A' ,. Previous Pm
Residential Electric Service 01/09/2018 02/13/2018 84311 86897 2586
EV On Peak 01/09/2018 02/13/2018 342 419 77
EV Off-Peak 01/09/2018 02/13/2018 12104 13712 1608
Current Service Detail
Electric Usage Customer Charge 13.50
_ectrte 113ega -- 901 KM; .121C00 10947
ti ti 4e EV Off-Peak 1608 KWH @.060200 96.80
a° ti _V On-Peak KWH Ca?.121500 9.36
Tuwt C1r�lrlo Gh77myea 229.13
P TOU Rates Provide the proper
PERIOD ENDING Jan 2017 Jan 2018 T
Avg Daily kWh 59 73 F incentive to motivate customers to
Avg Daily Cost 6.36 f;55
control when they use energy.
1
otai current cnarges Zb3.41 "J
Purchase and Installation of Public Charging Stations
Elk River Municipal Utilities purchased and installed three ChargePoint° public chargers as part
of the grant. The initial grant application included one 240 volt Level 2 charger, and one 480
volt DC Fast charger. The third charging station, a Level 2, is used primarily to charge the Elk
River Municipal Utilities and City fleet vehicles.
Major factors to consider when selecting public charging sites included access to electric
infrastructure (transformer and metering), access to major corridors of transportation, and
access to retailers, parks, or other activities. Electric vehicle owners prefer locations with
activities nearby to occupy themselves while charging. The type of charger and location are
dependent on each other for customer satisfaction.
ERMU selected ChargePoint as the best value for the equipment, software, customer support,
billing, and a maintenance package for the equipment and software. ChargePoint also provides
the largest cloud-based network with more than 56,000 charging spots around the country.
For the purposes of public charging, ERMU identified that the Level 2 (240 volt) and the Level 3
(DC Fast 480 volt) chargers would be appropriate for public use. The DC Fast charger has a
capacity of 50 kW and can deliver approximately 40 miles of charge in 10 minutes. The Level 2
has a capacity of 14.4 kW and can deliver approximately 26 miles of charge in 60 minutes for up
to two vehicles at a time. The Level 1 (120 volt) was not considered because of the extended
time needed to receive a significant charge.
After selecting ChargePoint as the vendor for the equipment and support, ERMU's objective
was to find suitable partners willing to host an EV charging site at a location on a high traffic
11
50
corridor with access to electric power, and at an acceptable cost to ERMU. ERMU was also
responsible for finding a certified installation contractor. ERMU solicited bids from local
contractors for the installation of the units and worked with them to become certified
installers/partners of the ChargePoint equipment.
The first station was installed on June 23, 2016. It was a level 2 station, which was easier to
install because they operate on 240 volts and in this case did not need any additional
distribution upgrades such as a new transformer. ERMU partnered with the City of Elk River's
Economic Development Authority to locate it in the historic downtown business district. ERMU
and the City entered into a license agreement to utilize the parking spaces, with no cost to
ERMU for this license agreement. ERMU was able to use an existing transformer located in the
parking lot to serve the charging equipment.
The site was a good choice for a level 2 charger because it was close to a city park and trail, had
available parking spaces, and had retail shops and restaurants within walking distance. The area
surrounding the parking lot provided many entertainment options to support a longer charging
session. Area businesses will benefit from attracting electric vehicle drivers to shop and eat
while they charge at the level 2 station.
Use of Public Charging Stations
Based on the collected data in Table 1 and Figures 1 & 2 below, the conclusion is that the DC
Fast Charger users are taking advantage of the high-power charging capacity with more than 95
percent of the charges lasting an hour or less. Slightly more than 60 percent of charges on the
Level 2 chargers are an hour or less.The convenience of the DC Fast Charger is preferred by EV
drivers who are "topping up" their vehicles.
Table 1
Level 2 (240 Volt) DC Fast Charger(480 Volt)
Charging Session Length Number of Percent Number of Percent of
(Hours:Minutes) Charges of Total Charges Total
0:30 22 29.7% 117 78.0%
1:00 23 31.1% 28 18.7%
1:30 15 20.3% 4 2.7%
2:00 4 5.4% 1 0.7%
2:30 3 4.1% 0 0
3:00 4 5.4% 0 0
4:00 1 1.4% 0 0
5:00 1 1.4% 0 0
6:00 1 1.4% 0 0
12
51
6:00 1 Level 2 Charger (240 Volt)
v 5:00 1
3
c
4:00 1
h
3
o
3:00 4
c
0
v2:30 3
gn
on
c
'Er) 2:00 4
co
s
U
0 1:30 15
s
a+
no
J 1:00 23
0:30 22
0 5 10 15 20 25
IINumber of Charging Sessions Figure 1
13
52
DC Fast Charger (480 Volt)
2:00 I 1
c
C
I-
L
= 1:30 4
I
�° 1:00 28
co
.c
U
w
O
s
r
00
C
01
J 0:30 117
0 20 40 60 80 100 120 140
■Number of Charging Sessions
Public Charging Rates (Flat Fees, Connection Fees, and kWh Fees)
Initially the rates at the public charging stations were based on an hourly charging fee because
the customer interface with ChargePoint could not display the tiered pricing. The initial rates
were $1/hour for the first 3 hours and $3.5 per hour after that.The dollar per hour charge for a
Level 2 charger with a capacity of 7.2 kW is equal to about $0.14/kWh. The rate for the DC Fast
Charger, which has a capacity of 50 kW, is equal to about$0.02/kWh.
After the first few months, the software was upgraded so the Time-of-Use (TOU) rates could be
displayed for customers to see. At this time, Elk River Municipal Utilities implemented a
connection fee to recover fixed costs (equipment) and the TOU energy rate to cover the
variable cost (kWh costs). Public charging customers were very happy with the flat fees of the
dollar per hour for both the Level 2 and DC Fast Charger. When the connection fees were
implemented along with the TOU energy chargers, the feedback was generally positive for the
initiative to install infrastructure, but the cost was too much for people only needing a few kWh
per charging session.
14
53
The connection fee and energy rate were based on market and other comparable chargers in
the area, with a desire to recover fixed and variable costs in a way that was easy to understand
from the owners'/providers' perspective. But from the user side, it made the cost of charging
the electric vehicle for a few kWh cost prohibitive. Electric vehicle users are accustomed to
plugging in while out running errands and picking up a few kWh charge at each stop. The EV
community calls this charging pattern "topping up". This is similar to cell phone charging;
people don't wait until their phone battery is depleted to charge. Rather, they charge when
they get a chance. The results in Table 2 below illustrate the number of charges per day for the
two different charger types and the different pricing structures.
Table 2
Level 2 (240 Volt Charger) Public Parking Lot
Number of Number Charges
Charges of Days per Day
$1 per hour 41 293 0.14
$2 Connection Fee Plus TOU rate 36 247 0.15
DC Fast Charger(480 Volt Charger) Fuel Station
Number of Number Charges
Charges of Days per Day
$1 per hour 92 134 0.69
$5 Connection Fee Plus TOU rate 71 247 0.29
*Note:-Time-of-Use (TOU) rates are$0.137 on-peak summer, $0.1215 on-peak winter, and $0.0602 off-
peak all year.
The DC Fast Charger experienced a substantial decrease in charges per day with the $5
connection fee plus an energy rate.The Level 2 was relatively unchanged. Based on customer
feedback and the substantial decrease in the number of DC charging sessions, Elk River
Municipal Utilities implemented new pricing in 2019, eliminating the connection fee and simply
charging a blended rate for energy at each type of station.
The customer feedback over the past two years led Elk River Municipal Utilities to apply energy
only pricing at the public charging stations: Level 2 charging stations at $0.15 per kWh and
$0.20 per kWh at the DC Fast Charger. A major lesson learned about public charging rates is to
avoid connection fees if at all possible.
15
54
Time-of-Use Rates and In-Home Installations
Elk River Municipal Utilities currently has eight residential customers participating in the EV
charging program.The monthly sales data (Graph 1) illustrate that since January 2017, 83
percent (45,672 kWh) of the sales to these customers occurred between 11 p.m. and 7 a.m.,
Monday through Friday, or on weekends and holidays. Only 17 percent of home charging
occurred during on-peak times. Looking at the detailed individual customer data, it is clear that
two customers do not have the battery storage capacity to allow them to charge in only off-
peak times or they are indifferent to the price differential between on- and off-peak energy
pricing.
Total In-Home kWh Sales Jan. '17 - Dec. '18
50,000
45,000
40,000
35,000 _ ______..
30,000
25,000
■kWh Sales
20,000
15,000
10,000
5,000
In-Home Off-Peak In-Home On-Peak Graph 1
For public charging stations, 67 percent of sales were on-peak while 33 percent were off-peak.
Elk River Municipal Utilities primarily uses the Level 2 charger in the parking lot, almost
exclusively during off-peak hours (Graph 2). ERMU fleet used only 683 kWh of the 57,327 kWh
over the study period of January 2017 through December 2018. Sales to ERMU accounted for
less than one percent of the total program sales. ERMU initially provided off-peak rates at fairly
restrictive hours (11 p.m. to 7 a.m.). Effective January 1, 2019, Elk River Municipal Utilities
expanded off-peak hours to 10 p.m. to 10 a.m. Monday through Friday and holidays.
16
55
Public Charging TOU kWh Sales Excluding Fleet
Vehicles '17 - '18
1,200
1,000
800
600
■kWh Sales
400 —
200
Graph 2
Public On-Peak Public Off-Peak
For the public charging stations, 56 percent of the energy sales occurred during on-peak times.
This is drastically different from the in-home results, but seems like a reasonable result since
customers are not inclined to make a special trip to take advantage of off-peak pricing after
11:00 p.m. and before 8:00 a.m. Most charging is done at home during off-peak hours, and the
data supports this.
The private and public charging activities highlighted in Graphs 3 illustrate the tendency to
charge at night and at home. A common belief exists in electric vehicle circles that
approximately 80 percent of electric vehicle charging occurs at night when customers are at
home. The results highlighted in Graph 3 confirm that thinking, with 82 percent of all private
and public charging occurring during off-peak hours.
Another interesting observation from Graph 3 is that of all the energy sold to electric vehicle
drivers through private and public charges, 97 percent of those sales were to customers of
ERMU's in-home program. The public chargers are an important part of electric vehicle
program to reduce range anxiety, but volume of sales is minimal. Only 3 percent of program
sales came from the public charging stations.
17
56
Total EV Program kWh Sales Excluding Fleet
Jan. '17 - Dec. '18
2% 1%
■In Home On-Peak
■In Home Off-Peak
Public On-Peak
■Public Off-Peak
Graph 3
Based on energy sales from January 2017 through December 2018, customers prefer the DC
Fast Charger over the Level 2 charger. Over the study period, the DC Fast Charger provided
1,400 kWh while the Level 2 provided 511 kWh. There is opportunity for future study on
customer behavior and the propensity to charge at the DC Fast Charging stations. The fact that
customers prefer the DC Fast Charger is not hard to believe because we are a society of
convenience, and the DC Fast Charger is much faster at charging and is more convenient as a
result. The sales number in Graph 4 excludes the sales for the Elk River Municipal Utilities and
City of Elk River fleet vehicles. For reference, the Level 2 charger utilized by fleet vehicles over
the study period provided 683 kWh.
18
57
Total kWh Sales by Charger Type (Excluding Fleet
Vehicles)
January 2017 - December 2018
■Level 2
■DC Fast
Graph 4
Environmental Benefits from EV (Emission Reductions and Revenue Increases)
The Electric Vehicle program has provided substantial environmental advantages. Based on the
ChargePoint® summary calculations using the EPA national average emission levels, customers
utilizing public charging stations have lowered greenhouse gas (GHG) emissions by 1,246 kg (or
2,747 lbs.). Applying the same emission factor to the total program sales of 57,327 kWh, the
resulting emission reduction is more than 24,000 kg (or 53,000 lbs.). This is a conservative
estimate of the environmental savings because the Elk River Municipal Utilities programs utilize
renewable energy for the energy sold at the public charging stations and the participants in its
EV program.
19
58
Public Electric Vehicle Charging Station
Daily and Accumulated Greenhouse Gas Emission
Reduction
June 23, 2017 through December 31, 2018
1400 35
1200 30
.2 1000 25
0
800 20 -a
ccCU
600 �__�__ ___®_____._.. _ 15 z
C7 � j C7
= 400 10
i!! I I 5
CU
200 I l 1 11111 iftr
I I I I t
0 0
O O O O 0 0 0 0 0 O O O 0 0 0 O 0 O O
V N N N N N N N N N N N N N N N N N N N f0
U \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \
'... Q M M M M M M rn Cr) M rn M m m M M M m M M
N N N N N N N N N N N N N N N N N N N
lD I� 00 Q1 0 -I N ri N M V up I� coQl O c-1 N
',.. 7-1 ,-1 e--I c-I ci ri
-Accumulated (kg) -GHG savings(kg) Chart 1
Installation and Cost Public Charging Stations
The installation of public charging stations consisted of tapping into the existing secondary
conductors coming from an existing transformer with enough capacity to serve the additional
load of the charging station. This drastically cut down the installation cost. The total cost of
installing each public charging station is listed in the table below.
Table 2 Elk River Municipal
City Parking Lot Coborn's Fuel Station Utilities Parking Lot
Level 2(240 Volt) Level 3 (480 Volt) Level 2(240 Volt)
Charger, Software, and Warranty $8,756 $41,802 $9,290
Elk River Municipal Utilities Costs
(Distribution& Branding) $1,045 $10,556 $3,416
Electrical Contractor Costs $3,597 $6,635 $3,450
Total Costs $13,398 $58,993 $16,156
The DC Fast Charger was the second station installed. This charger was a bit more challenging
to install because of the large demand for energy for a relatively short amount of time. Elk River
Municipal Utilities determined that it would be best to install a dedicated transformer to serve
the demand.
20
59
For the 50 kW DC Fast Charger, ERMU's goal was to partner with a convenience store property
located on a high traffic corridor. As EVs are becoming more common, the goal of this
installation was to provide a model for partnerships with convenience store owners that
provide fuel for standard internal combustion engines. This would provide traditional
convenience stores the opportunity to learn about EV charging facilities as well as customer
behaviors.
The first convenience store location installation encountered significant delays as a result of a
road redevelopment project and the associated challenges that come with the relocation of
underground utilities in the area. As a result of those redevelopment challenges, ERMU needed
to evaluate other options for the installation of the DC Fast Charger. Across town, the Coborn's
grocery store was in the process of adding a 12-pump fuel station in their parking lot. ERMU
approached Coborn's about the possibility of installing the DC Fast Charger in their parking lot,
adjacent to the new fuel pumps. In a matter of a few weeks, terms were agreed to, and a
license agreement was put in place to allow ERMU to install and operate the DC Fast Charger at
their new fuel station.
The Coborn's site was an excellent option because it was located on major transportation
corridor traveled by more than 50,000 vehicles per day. Located within walking distance are a
grocery store, liquor store, fast food restaurant, deli, and retail shopping. The proximity to the
highway means easy access and high visibility. ERMU partnered with Coborn's to locate the
charging station on their property utilizing a 10-year lease agreement. ERMU did not have to
pay anything for the lease agreement in this partnership.
ERMU installed a third charger in the parking lot shared by the utilities and the City of Elk River.
The primary purpose of this charger is to support ERMU's and the City's EV fleets, but it has
been occasionally used by the public. The location in the Elk River Municipal Utilities/City
parking lot is not ideal, but it is located within walking distance of the public library and city
parks and trails.
The equipment was very easy to install. Once the site was prepared, the installation of the units
only took a couple of hours. Preparing the site and sourcing the electricity are the most
challenging parts. When evaluating sites, the location and the costs associated with getting
power to the site are critical.
Back Office Support for Public Charging Stations
A key factor in selecting ChargePoint was the expertise they provide in installation, setup,
ongoing support, and customer billing. The call center is staffed 24/7 for customers and
equipment owners. As part of the overall package, ERMU decided to purchase the Assure
21
60
extended warranty in case of any problems with the equipment or associated software. With
the Assure package, ChargePoint covers 100 percent of the materials and labor to repair the
units. The online software interface provided allows for easy activation, site configuration, and
monitoring.The software interface is easy to use and allows for the administration of many
charging locations from one single person or location. This software is cloud-based and is
intuitive and flexible.
After the purchase of the equipment and the software licensing for the ChargePoint equipment,
the day-to-day operations are very simple. Setting up each station is easy, and the support
services are incredibly helpful. In a matter of 20 minutes, a new charging unit can be programed
with all the rate and reporting functions needed to bring the unit online.The standard reports
allow the administrator to view the number of sessions, energy used, greenhouse gas savings,
and charging port activity. Another useful tool is the ability to export the charging data to a data
file. Once the data is exported, it can be analyzed as needed.
After the unit is operating, the administrator can check the status of the unit, number of
charges, length of charges, and energy sold at any time. The system administrator for the
owner has access to this information through a proprietary owner interface. Administrators can
see any error messages from failed charges and will be notified through email or a voicemail if
there are problems with one of the units. ChargePoint charges a 10 percent administrative fee
on all revenue generated from the charging unit for providing network services and customer
support. Based on the revenue charged at the public charging units, ChargePoint will simply
send Elk River Municipal Utilities a check for the total dollars collected, less 10 percent. The
checks will be mailed either monthly or quarterly depending on the number of charging stations
or the amount of revenue generated.
Partnership with City of Elk River/Energy City
The electric vehicle initiative was the perfect technology to leverage the environmental focus of
our community into an emerging clean technology. The EV program would provide the city with
the opportunity to save operational dollars, reduce GHG emissions, and support renewable
energy generation by utilizing renewable energy for electric vehicle charging. The partnership
with the City allowed many more communities and stakeholders to learn from the EV
experiences made possible through the APPA DEED Grant. To gain acceptance and market
transformation, partnerships of many types will be needed.
There are two main reasons why people purchase an EV: cost savings and/or environmental
benefits. EVs provide the unique opportunity to align the goals of utilities and environmental
advocacy groups to reduce GHG emissions and work toward cleaner air. Elk River Municipal
Utilities and the City became the local experts in EVs through this pioneering work and the
22
61
knowledge we acquired by participating in this grant. We are able to work closely with our
customers through engagement initiatives such as a YMCA lunch and learn drive event, an
electric vehicle charger grand opening, and National Drive Electric Week participation.These
events to promote electric vehicles have greatly increased the recognition of our community as
an environmental leader by individuals and organizations throughout the state of Minnesota.
Partnerships Beyond Our Community
The use of EVs is bigger than any one organization, utility, or state. Partnerships and
collaborative working groups are needed to expand the EV charging infrastructure. The top
priority is to develop consumer confidence by decreasing range anxiety.To decrease range
anxiety, there needs to be more access to infrastructure with 50 kW or higher charging
capability.The range of the all-electric vehicles continues to improve, but without the ability to
drive anywhere with the confidence of finding a charging station, customers are still going to
have to have an internal combustion engine in their personal fleet that will allow for longer,
more flexible trips that are not on a major charging corridor with readily available access to DC
Fast Chargers.
As early supporters of electric vehicles, Elk River Municipal Utilities and the City of Elk River
have become statewide advocates of and experts in rolling out electric vehicle programs. ERMU
and City staff shared their experiences with in-home programs, Time-of-Use rates, public
charging site locations, EV Suitability Assessments, and implementing EVs in city and utility
fleets with many groups, which was a huge benefit to all EV programs in the state.
This knowledge was shared with primarily two types of organizations: policy or advocacy groups
and utility-focused groups. The policy/advocacy groups focused on the larger picture of societal
changes and support. Their goals are to increase awareness of the environmental benefits such
as greenhouse gas reductions and better air quality through the adoption of new technology.
ERMU and the City have developed working relationships with many of these groups, including
the League of Minnesota Cities, Climate Smart Municipals, Clean Energy Resource Team
(University of Minnesota), the Center for Energy and the Environment, Great Plains Institute,
and the American Lung Association.
The electric utility group of EV supporters primarily focused on the delivery of infrastructure to
end-use customers. These groups include the Minnesota Municipal Utility Association, Xcel
Energy, Great River Energy, Connexus Energy, Dakota Electric Association, the Center for Energy
and Environment, Minnesota Public Utilities, Minnesota Department of Commerce, and Plugin
Connect.
23
62
Electric Vehicle Fleet Assessment and Suitability Study FleetCarma
The topic of greatest interest generated by this initiative to both the policy and utility groups
were the results of our Fleet Suitability Assessment. Elk River Municipal Utilities contracted
with FleetCarma to provide an Electric Vehicle Fleet Suitability Assessment.The fleet
assessment results received a great deal of praise and interest around the state of Minnesota.
After presenting the fleet assessment results to the Elk River Municipal Utilities Commission
and the Elk River City Council, each organization purchased or leased an electric vehicle for use
in their respective fleets.
The results also captured attention statewide. Other utilities, including investor owned and
cooperative utilities, implemented similar studies with interested cities and large businesses.
Elk River Municipal Utilities was also able to present our findings to the Minnesota Public
Utilities Commission as well as key stakeholders including but not limited to joint action
agencies and non-governmental advocacy groups.
The Electric Vehicle Suitability Assessment completed by FleetCarma in December 2017 was a
valuable tool for presenting the feasibility of incorporating electric vehicles into the City's and
Utilities' vehicle fleets. The conclusions of the assessment provided quantifiable data that
allowed our Utility Commission and the City Council to make informed decisions on
incorporating EVs into the fleets.
The EV Suitability Assessment began with monitoring the driving characteristics of 20 vehicles
(12 city-owned and eight utility-owned). Each vehicle was equipped with a data tracker that
monitored the daily use of each vehicle for nine months. The major driving characteristics that
were measured over the nine-month assessment included acceleration, braking, average speed,
idle time, driving time, and distances. From these measurements, Fleetcarma was able to use
their proprietary software calculations to calculate a side-by-side comparison of the existing
internal combustion vehicles to the most appropriate electric vehicle.
The 20 vehicles that were part of the study included sedans, pickup trucks, and SUVs. An
important lesson learned was that the vehicle use needs to be well defined prior to the study
beginning. The pickup trucks were identified as being able to be replaced with a SUV or sedan
when they actually could not because of the work requirements for those vehicles.The pickup
trucks are needed for towing and the meter reading vehicles need to have all-wheel drive or
four-wheel drive to be fully utilized.
24
63
Table 3 Average
Number Daily Miles Percent
of Miles Per Drive Average of Idle
Vehicles Driven Gallon Time/Day Speed Time
Hour.Min
City of Elk 12 17 15 1.0 17 35%
River
Elk River
Municipal 8 17 14 1.2 18 38%
Utilities
Idle time for both City and Utility vehicles was very high, ranging from 35 to 38 percent of the
time. For tracking purposes, a vehicle is assumed to be at idle if it's stationary for more than 60
seconds. The high proportion of idle time is a result of many vehicles doubling as field staff
offices. There is a considerable part of the day when field staff are working on their computers
or completing paperwork at jobsites, which requires them to leave the vehicle running either to
use their equipment or for comfort in summer and winter.
The comparison focused on the Total Cost of Ownership (TCO), emission reductions, and fuel
reductions.The TCO factors include calculations of operation and maintenance of internal
combustion engines and drive train along with fuel costs. The assessment also recommends the
number and types of EV chargers that are believed to be necessary to support the
recommended fleet changes. The cost of charging equipment is not factored into the TCO. The
cost of fleet charging equipment could vary widely ($1,000 for Level 2 to $55,000+for DC Fast
Charger) so FleetCarma does not include the cost in their calculations.
The table below summarizes the eight vehicles that are best suited for the conversion to either
a Battery Electric Vehicle (BEV) or a Plug-in Hybrid Electric Vehicle (PHEV).The Total Cost of
Ownership (TCO) also assumes that the average remaining life of the vehicles is seven years.
This is the average time that the existing vehicles would continue as part of the fleet.
25
64
Table 4
Vehicle Business Recommended Total Cost of
Type Unit Department EV Model Ownership
Savings
2016 Ford General Ford C-Max
Explorer Utility $16,710
Manager Energi
2014 Ford Meter Ford C-Max
F-250 Utility Reading Energi $16,401
2007 Ford
F-150 Utility Locating Nissan Leaf $12,645
2007 Ford Meter Ford C-Max
F-150 Utility Reading Energi $11,024
2015 GMC Parks and Ford C-Max
1/2 Ton City $7,521
Pick-Up Streets Energi
2013 Ford Key Ford C-Max
Explorer Utility Account Energi $5,511
Manager
2009 Ford Police
Crown City Community Ford C-Max $3,793
Victoria Service
Energi
2016 Building
Chevrolet City Nissan Leaf $3,003
Inspection
Traverse
Total $76,608
The key facts findings of the Suitability Assessment that supported the inclusion of EVs into the
City and Utility fleets included:
• 80 percent of the vehicles drove less than 50 miles per day
• 97 percent of the vehicles drove less than 100 miles per day
• The average driving distance per day was 17 miles
• The average driving time per day was less than 1.5 hours
26
65
In addition to the operational cost savings, the eight best vehicles would reduce CO2 emissions
by 38 percent or 270 tons over the remaining life of the vehicles. The largest component of the
TCO is the fuel savings. Based on the assessment results, the City and Utilities would reduce fuel
consumption by 42 percent or approximately 26,499 gallons if the selected vehicles were
converted to plug-in hybrids or all electric.
The Elk River Municipal Utilities vehicle is used by the Key Account Manager for day-to-day
business meetings in and around town and will be used on longer trips to meet with statewide
organizations. The Chevy Bolt has a maximum battery charge of 60 kWh with a maximum range
of 240 miles. The miles decrease significantly in cold weather. A recent experience showed the
maximum capacity of the batteries at -33 degrees Fahrenheit at 158 miles. When temperatures
are subzero for multiple days, the EV should remain plugged in at all times. This hybrid vehicle
can travel 22 miles on the battery and then the internal combustion engine will take over to
provide the supplemental power with an estimated maximum range of 310 miles utilizing the
battery and internal combustion engine. The hybrid models provide for more flexibility with the
fuel switching available to extend the overall range.
Beneficial Electrification
What Elk River Municipal Utilities set out to accomplish in 2016—increase energy sales,
improve the utility system load factor (load management), and decrease greenhouse gas
emission—is currently driving some significant policy changes in the electric industry today.
The popular phrase used today is Beneficial Electrification, also referred to in past scenarios as
"load building." According to the Environmental and Energy Study Institute, "Beneficial
Electrification refers to the replacement of fossil-fuel powered systems with electrical ones in a
way that reduces overall emissions, while providing benefits to the environment and to
households."
Over the study period, 54,733 kWh were sold to eight customers in their homes. These
incremental sales are significant load growth for each participant. The average sales sold to the
eight participating customers was 2,280 kWh per month. Of those energy sales, 83 percent
were during the off-peak times, which help all customers by improving the system load factor
and reducing costs to all customers. In an effort to maximize the greenhouse gas emission
reductions from vehicles, Elk River Municipal Utilities automatically includes 100 percent
renewable energy for customers participating in the electric vehicle charging program.
Applicability (Critical Lessons Learned)
• Customers do not like connection fees. Connection fees make topping up for a few kWh
while out running errands extremely expensive.
27
66
• Establish branding and social media platforms prior to installation of equipment.
• Determine partnerships early and make sure partners are fully committed to the
objectives and capable of following through. Have contingency plans for charging site
locations and partnerships with retailers.
• Identify how each vehicle is used on a daily basis prior to enrolling it in the fleet
assessment study. Some internal combustion engine vehicles are not suitable to be
replaced with an EV because of the requirements on the vehicle (towing heavy trailers
or the need for four-wheel drive).
• Customer education is time-consuming and can be demanding on staff time.
• Work to educate local auto dealerships on programs and incentives available to EV
buyers. Work with the dealerships to educate their staff about any utility charging
programs offered.
• Battery electric vehicles do not perform best in temperatures below zero and the
battery range is diminished by 30 percent in cold weather if they are stored outside. If a
battery electric vehicle cannot be stored inside during the winter they, should be
connected to a charger.
Budget
The most significant budget deviations were caused by the purchase and installation of a third
ChargePoint unit. As a result of purchasing the Chevy Bolt, Elk River Municipal Utilities decided
to install a public station in the parking lot to allow the Elk River Municipal Utilities and City
vehicles to charge in the parking lot. This was not in the original budget and accounted for just
over$16,000 in expenses. The other source area of additional expense was the need to install a
transformer for the DC Fast Charger at the Coborn's location.The additional transformer
increased the costs by just over$5,000 plus some additional labor. While the purchase of the
warranty added to the project going over budget, ERMU felt this was the correct decision based
on the newer technology and ERMU staff having no experience with the equipment.
Another item that was not included in either the budget or the actual numbers below is the
$33,600 for the 2018 Chevy Bolt. Based on the FleetCarma study and the review of the Elk River
Municipal Utilities fleet, it was decided to shift vehicles around. The Conservation & Key
Account Manager was using a Ford Explorer for day-to-day activity but based on the
FleetCarma assessment, it was determined that an EV would be suitable. The Ford Explorer was
shifted to the meter reading staff and the Chevy Bolt was purchased for the Conservation and
Key Account Manager.There was actually a savings since the new electric vehicle was less
expensive than the pickup truck that was budgeted. Those savings also helped offset some of
the additional costs of installing a public charging station at the ERMU office.
28
67
Table 5
Expense Category Budget Actual
Charging Equipment& Elk
River Municipal Utilities $42,500 $61,410
Equipment Costs
Software and Warranty $0 $7,907
Construction Labor(Elk
River Municipal Utilities $8,000 $17,761
and Contractor)
FleetCarma EV Suitability
Assessment $13,000 $14,679
Marketing(Web, Signs,
Branding, Brochures) $27,000 $20,337
Administrative and Legal $17,500 $19,078
Total $108,000 $141,172
Future Plans
Elk River Municipal Utilities will continue to support the electric vehicle community through
promoting public charging and our in-home program. ERMU will develop an incentive program
for local businesses if they install charging equipment for their customers and/or employees.
ERMU could develop a customer charging program that would allow local customers to charge
at ERMU charging stations for free or a reduced charge if they would utilize their ChargePoint
account. Within the ChargePoint customer service platform, individual customers can be set up
in a pricing group that would allow them to be charged a different rate than the general public.
ERMU will collaborate with statewide stakeholders to expand the use of electric vehicles
through public policy changes that lead to beneficial electrification.
ERMU will transition to energy only rates at the public charging stations. The Level 2 will be
$0.15/kWh and the DC Fast Charger will be $0.20/kWh.
29
68
Equipment
Elk River Municipal Utilities purchased three electric vehicle charging units as described in the
results section of this final report. The equipment has worked well except for a control board
on the DC Fast Charger that needed to be replaced. It took ChargePoint's service contractor two
months to fix the unit. This was a point of frustration, but since that time, ChargePoint has
contracted with additional service providers and resolved the service issue. Since the unit's
control board was replaced, ERMU has had no issues with the DC Fast Charger or either of the
Level 2 chargers.
Both the Chevy Bolt and Mitsubishi Outlander vehicles have performed well. The decrease in
battery life for the Chevy Bolt will be a big consideration on longer trips in cold months. The
decrease in range for half the year needs to be considered in a cold northern climate. The
Outlander has experienced positive feedback from City staff with the only challenge being in
determining who is responsible for charging it after use. The City has experienced no range
anxiety with the plug-in hybrid and users have found it easy to operate.
Additional Notes
References
Bibliography
30
69
Summary Abstract for CG-2036 - Elk River Municipal Utilities
Project Title:
Elk River Municipal Utilities Partners with City of Elk River and Local Businesses to Provide Fast
Electric Vehicle (EV) Charging as Part of Green Step Cities Initiative
Status
The DEED Grant CG-2036 is complete, but Elk River Municipal Utilities (EMRU) will continue to
explore and expand electric vehicle and charging infrastructure program opportunities in the
future.
Dates
The project term as submitted in the original proposal was from November 2016 through
October 2017. Elk River Municipal Utilities obtained an extension to May of 2019.
Purpose
The goal of the electric vehicle charging program was to leverage the existing partnership with
the City of Elk River to increase local and statewide awareness of the benefits of electric
vehicles, Time-Of-Use (TOU) rates, and learn from experience about public charging systems
and associated rates.
Utility Name and Address
Elk River Municipal Utilities
13069 Orono Parkway
P.O. Box 430
Elk River, MN 55330-0430
Utility Description
Elk River Municipal Utilities (ERMU) is located in central Minnesota; ERMU's service territory
encompasses 45 square miles situated on two major highways that serve as a gateway to
vacation destinations to the north and northwest of Minneapolis/St. Paul. Since 1997, ERMU
and the City of Elk River have been partners in promoting our community as Energy City.
2018 ERMU Vital Statistics
Electric
Customer Segments Number of Cust. Energy kWh
Residential 10,422 95,811,134
Commercial 1,333 29,289,955
Industrial 228 206,022,922
11,983 331,124,011
Electric Peak Day Demand 66.41 MW
Water
Customer Segments Number of Cust.
Gallons of water
Residential 4,536 356,279,000
Comm./Industrial 604 376,008,000
5,140 732,287,000
1
70
Water Peak Day 4.8 Million Gallons
Water System Capacity 9.5 Million Gallons
Key Personnel & Phone Numbers
Name Organization Title Phone
Troy Adams Elk River Municipal Utilities General Manager 763.441.2020
Calvin Portner City of Elk River City Administrator 763.635.1000
Conservation and Key
Tom Sagstetter Elk River Municipal Utilities Accounts Manager 763.441.2020
Communication and
Executive Administrative
Michelle Canterbury Elk River Municipal Utilities Manager 763.441.2020
Tony Mauren Elk River Municipal Utilities Communication Specialist 763.441.2020
Amanda Bednar City of Elk River Environmental Coordinator 763.635.1000
Don Horvath Andy's Electric Master Electrician 612.669.6195
Brian Levin ChargePoint Sales Director 847.903.6652
Project Subject Areas
Greenhouse gas reduction, clean air, time-of-use rates, residential electric vehicle charging,
ChargePoint, electric vehicle fleet suitability assessment, electric vehicle fleets, public charging
stations, in-home electric vehicle charging program, public charging installation costs, beneficial
electrification, community partnerships.
Results to Date
• Created and launched a new electric vehicle brand for Elk River Municipal Utilities.
• Implemented time-of-use rates for public charging stations and revised public charging
rates to reflect energy only charges with no time-of-use based on customer feedback.
• Completed an Electric Vehicle Fleet Assessment in partnership with the City of Elk River.
• Purchased a battery electric Chevrolet Bolt, and assisted the City of Elk River with the
lease of a plug-in hybrid Mitsubishi Outlander.
• Participated in policy discussions with stakeholders in Minnesota on how electric
vehicles are "beneficial electrification".
• Increased participation in the in-home, time-of-use charging program from two
participants to eleven.
• Installed one public DC fast charger in partnership with a local grocery store (Coborn's).
• Installed two public level two chargers in public parking lots in Elk River, MN.
Project Description
Elk River Municipal Utilities (ERMU) will develop an electric vehicle program that will shift the
market from the standard internal combustion engine vehicle to electric vehicles. ERMU will do
this by reducing range anxiety about electric vehicle technology through installing public
charging stations. ERMU will also work closely with the City of Elk River to take advantage of the
community outreach and educational opportunities with the city's Energy City Commission and
the Green Step Cities Initiative. In addition, ERMU will provide incentives to customers who
2
71
purchase Level two charging equipment that is metered separately to allow for Time-of-Use
(TOU) rates. ERMU will conduct a fleet vehicle assessment in partnership with the City of Elk
River to determine the feasibility of electric vehicles and how to incorporate the electric vehicle
into the existing fleet.
Background
This project intended to promote the market transformation toward electric vehicles by
educating the public about range anxiety, the benefits of public charging infrastructure, and
incorporating electric vehicles in fleet operations. In addition, this program wanted to address
increasing participation in the in-home, time-of-use program, and provide greater support to
the community through increased Payment In Lieu of Taxes (PILOT). Finally this project
evaluated how customers would react to time-of-use rates being utilized at public charging
stations.
Applicability
Large or small utilities exploring beneficial electrification through electric vehicles or
incorporating electric vehicles in their fleet will find energy sales, charging station cost
information, and total cost of electric vehicle ownership analysis helpful for budgeting and
business case analysis. Any utility that is implementing public or in-home charging programs will
learn about effective retail and time-of-use pricing options.
Alternatives
• For the implementation of time-of-use rates, it would have been beneficial to utilize
AMI metering to reflect wholesale market prices. The pricing structure at Elk River
Municipal Utilities utilized more on-peak and off-peak rates than real time rates.
• Provide incentives greater than $500 to commercial customers that are installing
charging infrastructure for customer and/or employee use.
• Provide electric fleet vehicles with indoor parking, especially in cold winter months. The
batteries lose about 30 percent of their capacity in sub-zero temperatures.
Diagram
S
UTILITIES
INCREASED
ENERGY
SALES
DECREASED a REDUCED
TRANSPORTAT.• GREEN HOUSE
COSTS -- GASES
V
CUSTOMERS ENVIRONMENT
3
72
Equipment
• 2 —ChargePoint Level two commercial charging stations
• 1—ChargePoint DC Fast Charger (50kW)
• Elk River Municipal Utilities purchased a BEV Chevrolet Bolt
• The City of Elk River leased a PHEV Mitsubishi Outlander
Performance
Residential customers participating in the in-home program love the on and off-peak rate
structure. Customers do not like the direct load control program and are willing to pay a higher
price to charge their vehicle when needed.
• Range anxiety is still an issue today. The charging infrastructure is gaining momentum,
but there are still vast areas with limited access to charging facilities.
• Electric vehicles experience a loss of up to 30% in sub-zero conditions.
• Electric vehicle drivers are very technologically advanced so a social media platform is
helpful for communicating with them.
• Customers prefer to charge at home during off-peak hours. Charging in public is driven
by need and competitively priced public charging.
Future Plans
• Elk River Municipal Utilities will lead by example and continue to promote the purchase
of electric vehicles for residential customers and commercial fleet operations.
• Marketing efforts for the in-home, time-of-use program will continue, including the
potential for more aggressive incentives to provide opportunities for commercial
customers to install charging stations.
• Continue to lead policy discussions on a statewide basis to highlight the cost saving and
environmental benefits of increasing the electrification of transportation.
Budget
Elk River Municipal Utilities received a DEED Grant from APPA for$40,000.00 all other funding
was provided by Elk River Municipal Utilities.
Expense Category Budget Actual
Charging Equipment& ERMU Infrastructure $ 42,500.00 $ 61,409.87
Software and Warranty $ - $ 7,906.60
Labor(ERMU and Contracted Labor) $ 8,000.00 $ 17,761.16
FleetCarma EV Suitability Assessment $ 13,000.00 $ 14,679.28
Marketing (Web, Branding, Brochures) $ 27,000.00 $ 20,336.50
Labor and Administrative $ 17,500.00 $ 19,077.67
Total $ 108,000.00 $ 141,171.08
4
73