Loading...
HomeMy WebLinkAbout011420-03.3STUDY SESSION MEMORANDUM 3.3 TO:Mayor and Town Council |anuary 14,2020 SUBIECT: Electric Vehicle (EV) Chargrng Stations - Program Review and Rate Adiustment SUMMARY Since their installation in early 2015, the Town's Electric Vehicle (EV) charging stations have resulted in notable reductions in greenhouse gas (GHG) emissions, but they are operating at an estimated net loss of $8,500 annually. As the Town brings additional EV charging stations online, it is an appropriate time to evaluate the program and consider the following rate adjustment options to ensure that it is revenue neutral: It is recommended that the Town Council direct staff to implement Option C, which allows for full cost recovery plus the creation of a capital maintenance reserve to fund future equipment replacement needs. Further, the $1.00 Access Fee in Option C is intended to ensure that part of the program's operational cost is covered with every charge. The $20 Penalty Fee (with a 3O-minute grace period) is intended to encourage turn-over and discourage t}:re documented use of charging stations as extended parking. With the rate increase, it is anticipated the average cost of each EV charging session would be a nominal $4.1"5 and $8.15 for Level 2 and Level 3 stations, respectively. Level 2 Stations (Standard) $0.30/kwh $0.45lkWh + $20 Penalty Fee $0.45lkWh + $20 Penaþ Fee $0.45lkwh + $1 Access Fee + $20 Penalty Fee Level3 Station (Fast Charging) $0.30/kwh $0.45lkWh + $20 Penaþ Fee $0.55/kwh + $20 Penaþ Fee $0.SslkWh + $l Access Fee + $20 PenaþFee ($r,osv.sl¡$495.66 $1,5e0.66Net Gain (Loss): ($8,483.34) Current RateEV Charging Station Type Option A (Uniform Rate) Option B (Variable Rate) Option C (Variabte Rate + Access Fee) BACKGROUND Over the past decade, the Town has been actively playing a role in reducing its energy consumption and GHG emissions - first through the installation of solar arrays and subsequently by providing EV charging stations at the Town's municipal parking lots. To date, this program has resulted in an estimated greenhouse gas (GHG) savings of 74,726 kg or the equivalent of planting 1,9'l.,6 trees and letting them grow for ten years. At its September 9,2014Study Sessiory the Town Council directed the implementation of an operational model that allows the Town to set its rates and receive9}% of the revenue. The vendor, ChørgePoint, would retain a10% administrative fee. Under this model, the Town incurs all capital installation costs and pays an annual software administration fee as well as warranty fee (for parts andf or labor, depending on the station type). In early 2015, the Town Council set an EV charging rate of $0.30 per kWh beginning JuIy 1,,2015 (after a free unlimited EV charging promotional period). DISCUSSION To date, the Town has installed five EV charging stations - providing 9 total ports - at four municipal parking lots. Three locations feature Level 2 (standard) stations while one location offers a Level3 (fast charging) station. Average daily usage is shown below. Table L. EV charging station locations and usage characteristics With established usage patterns at three of the four EV charging locations, Town staff has conducted a post installation evaluation of the Town's EV Charging Station program. This evaluation uses data from the Clocktower, Railroad Avenue, and Library /Community Center municipal lots during calendar year 20L8. Program Revenues From an operational cost perspective, the three EV charging stations online in 2018 generated åpproximately $13,OSO in gross revenues (averaging $37.50 per'day). With 2 Clocktower Lot March 2015 Railroad Ave Lot fune 2015 VTAG Lot Jruly 2019 Library/Com Ctr February 2016 Level 3 Stations Level 2 Stations Installed #Stations #Ports Sessions/ Day (Average) Sessions / Year (2018 Actual) EV Charging Rates & Policy January 1.4,2020 s11..76 (fi17.28)($5.52)(92,0ß.4nClocktower Lot Railroad Ave Lot $8.19 ($14.00)($5.81)(92,122.04) $17.55 (92e.46)($14.43)($4,M7,83)Library/Com Ctr Level 3 Stations Avg Daily Net Gain or (Loss) Avg Annual Level 2 Stations # Stations Ports # Revenuesl Expenses Avg Daily AvgDaily Cornbined Total: $37.50 ($60.74)($30.02) ($8,483.34) expenditures averaging about fi22,110 annually, the program experienced an average annual net loss of $8,483 (rounded to $8,500), illustrated in Table 2 and in Attachment A. Table 2. EV charging stations reaetxues and expenditures þased on 201.8 data) Note 1: Revenues net of 10% administrative fee (ChargePoint) This net loss is a function of several factors, with the primary ones being: 1. Loru daily rel)enues at each charging statiory generating an average of $7.85 (combined average of Level2 stations) and $15.69 (Level3 station); and 2. Loro daily occupancy turn-oaer at each charging station, serving a daily average of 4.8 vehicles and 4.5 vehicles at the Level 2 and 3 stations, respectively. The low daily turnover reflects an average charging session length of about 1-10 minutes, though it should be noted that one-fifth of the users occupy a station in excess of 4 hours. Table 3. EV chnrging session lengths þøsed on 201.8 data) A quick review of the detailed data shows that some sessions were as brief as 4 minutes but others took as long as 1,134 minutes (nearly 19 hours). In the latter case, a vehicle occupied a Clocktower municipal lot charging station between 2:30 PM and 9:24 AM the following morning, paying a total fee of $1.91. This issue is not limited to Danville, as conflicts among users due to low turn-over is a subject of discussion among cities. Program Expenditures The program expenditures are a function of four cost components: energy (electricity), parts warÍarrty, labor, and software. For Level 2 stations, Town staff handles 3 Clocktower Lot 2 357o 32%177o 8%8% Railroad Ave Lot 2 40%28%15Yo 67o 117o .)87%117o 2%07o o%Library/Com Ctr Location Level 0-1 Hours 1-2 Hours 2-3 Hours 3-4 Hours , 4+ Hours EV Charging Rates & Policy ]anuary 14,2020 maintenance (provides the labor) with replacement parts provided through the warranty. For Level3 stations, both the labor and the parts are provided through the warranty given the complexity of these fast charging stations. For all stations, the primary cost component is energy followed by parts and labor (note that Town labor is not accounted for in this analysis). Table 4. EV clmrging stations reaenues and expenditures þøsed on 201.8 data) Program Cost Recovery It is anticipated that the gap between revenues and expenditures would continue despite bringing an additional two stations online at the Village Theatre Municipal Parking Lot and five planned stations at the expanded Sycamore Park & Ride lot. This is due to the need to provide Americans with Disabilities Act (ADA) accessible stations at these locations which are anticipated to yield a lower-than-average number of sessions daily. A cursory survey of surrounding communities reveals that EV charging rates vary greatly depending on locatioru whether it's publicly or privately owned, and whether the service is offered as a benefit or incentive for business patronage. Overall, the Town's EV charging rates are at the lower end of the range for publicly owned facilities. After reviewing a sampling of publicly available charging stations, it appears that the average rate is approximately $0.42 per k\Atrh (Table 5). To incentivize turn-over, some locations impose a penalty for parking after the vehicle has been fully charged while others require an "access fee." TøbIe 5. EV charging rates in local area (source: plugshare.com) 4 Clocktower Lot $10.66 $5.25 <Town>fil.37 917.28 Rafüoad Ave Lot $7.38 $5.25 <Town>1.37 $14.00 $12.01LiWary/ComCtr $15.80 Included $1.65 929.46 Level 2 Stations Level 3 Stations Combined Total 960.74 # Stations SubtotalEnergy Daily Expenses (Average) Parts Labor Software $33.84 56t'/t, 522.51 37"/,, $4.39 7"/t, PublicLafayette, Risa Road Parking $0.3elkwh Lafayette, Parking near lJncle Yu's Public $0.3elkwh San Ramon, Bishop Ranch 1 Private $0.36lk\^/h $10/hour after full charge Ownership NotesLocationRate EV Charging Rates & Policy January 'I..4,2020 San Ramon Community Center Public $0.4elkwh San Ramon Police Department Public $0.36lkwh San Ramon, Transit Center Public $0.4elk\^/h Blink Members $0.selkwh Blink Guests Walnut Creek City Hall Public Free Walnut Creek, California Plaza Private $0.2elkwh Bfink Members $0.5elk\ /h Blink Guests Dublin City Center Public $0.28lk\ /h Dublin, Emerald Point Private $0.34lkwh Access Fee: $1.50 (1't 4 hours), $4/hour thereafter Røte Ailjustment Options The following three options provide varying degrees of cost recovery. Option A (uniform rate increase to $0.45/kVVh) would lower, but not eliminate, the annual net loss. Option B (variable rate increase that charges a higher rate for the Level 3 station) would allow the Town to achieve cost recovery. Option C (variable rate increase plus a $1.00 access fee) would enable the Town to accumulate a capital reserve. All options would incorporate a $20 Penalty Fee (with a 3O-minute grace period) intended to encourage turn-over and discourage the use of charging stations as extended parking. With the rate increase, it is anticipated the average cost of each EV charging session would be a nominal $4.15 and $8.15 for Level 2 and Level3 stations, respectively. Table 6. EV Chørging Rate Adjustment Options - Based on 2018 Data Projecting these adjustments into the future, all of these options permit the Town to accumulate enough capital reserve to not only address future equipment replacement needs but potentially add new stations elsewhere within the community. 5 Level 2 Stations (Standard) $0.30/kwh $0.45lkWh + $20 Penalty Fee $0.45lkVüh + $20 Penalty Fee $0.45lkWh + $1 Access Fee + $20 Penalty Fee Level3 Station (Fast Charging) $0.30/k\^/h $0.45lkWh + $20 Penalty Fee $0.55/kWh + $20 Penaþ Fee $O.sslkwh + $1 Access Fee + $20 Penaþ Fee $495.66 $1,590.66($1,639.s9)Net Gain (Loss): ($8,483.34) Current RateEV Charging Station Type Option A (Unifornr Rate) Option B (Variable Rate) Option C (Variable Rate + Access Fee) EV Charging Rates & Policy January '1.4,2020 RECOMMENDATION Consider the evaluation presented and provide direction to implement Option C, which allows for full cost recovery plus the creation of a capital maintenance reserve to fund future equipment replacement needs and discourage the use of charging stations as extended dor¡mtown parking. Prepared and Reviewed by Assistant Town Manager Attachments A - EV Charging Revenue Model with 2018 Data B - EV Charging Revenue Model with Projections 6EV Charging Rates & Policy |anuary '1.4,2020 To w n of Da n v i l l e I EV Ch a r g i n g Pr o g r a m Ev a l u a t i o n Re v e n u e Mo d e l s wi t h 20 1 8 Da t a Attachment A 3.90 Re v e n u s Mo d e l : tt r d è c t è d b ñ e d oñ GU R R E I $ T RA T E S kw t f Ë e s s í o n Se s s l o n s / D a y Gr o s s R ê v e ñ u é s Er p e ñ s e s l\ ¡ e f R r e v e a r r c s lletßevenues AveragePatron Sì ¿ t ¡ þ n R e v € n u ê s Rä l e / k ' t i v h (A v ê i a g d ) (A v ê r ä g é l üS t à t i o h s Ad : e s s Fe e Av g D a i V .A v E D a i l y Áj r 8 Dä i l y A\€Annuá Cost pêrsèss¡on Cl o c k t o w e r M u n i Lo t S o. 3 o x 7 x 5. 6 x 1 +S =S LL J 6 S 1r z . z a ¡ =ç (S 5 2 ) = $ øO13,47\S Z.rO Ra i l r o a d M u n i Lo t $ o. g o x 7 x 3. 9 x 1 + $ = s 8. 1 9 $ {r a . O O ¡ = I {S € . 4 = É P,tZZ;Ul I Z.rO VI A G Mu n i l- o t 1 Pa r k & Ri d e Lo t 2 CC l L i b r a r u Mu n ¡ Lo t S 0. 3 0 x 13 kW h / S e s s i o n (A v e r a g e ! 4. 5 Se s s i o n s / D a y (A v e r a g e ) # St a t i o n s Gr o s s Re v e n u e s Av g Da i l y Ex p ê n s e s Av g Da i l y Nê t R e y e n u e s Aù A , D a i h / Nêt Rreverùes Á^BAnfruã¡r32.73Averate Patron Cost per Session x x s 17 . s s s l2 9 . a 6 l = s {1 . 1 J 9 1 1 =g Ílr,347#}ts To t a l : I 37 . 5 0 9 ( 6 0 . 7 4 ) 9 { ã } 2 4 } Ë ( 8 , r r 8 } 3 4 1 No þ s 1 a n d 2: Aw Þ g e da ¡ l y se $ i o ¡ s wi l l ño t in æ a s e p@ p o d ; o n a t e l y wi t h nu m b e r of sb t ¡ o n s du e to lo w e r us g e at A D A st i o n s Re v e n u e Mo d e l : Op t i o n A St a t ¡ o n Re v e n u e s Ra t e / k W h Cl o c k t o w e r M u n i L o t S 0. 4 5 x 7 x 5. 6 Ra i l r o a d M u n i Lo t $ O. ¿ S x 7 x 3. 9 VT A G Mu n i Lo t Pa r k & Ri d e Lo t Fe e Ac c e s s $27.sn 0: 3 6 {. L . v 2 t =s =5 s s s 5 x x +$+$ L7 . 6 4 12 . 2 9 s s (1 7 . 2 8 ) = I (1 4 . 0 0 ) = $ 3.15 3.15 Mu n ¡ Lo t Cl o c k t o w e r Mu n ¡ Lo t Ra i l r o a d Mu n ¡ Lo t VT A G Mu n i Lo t Pa r k & Ri d e Lo t 0. 4 5 x 13 x 4. 5 x 26 . 3 3 s ro t a t : $ 5 6 . 2 s s ( 6 0 . 7 4 ) $ ¿ 4 . ¡ t 9 } $ { t 6 3 9 s 9 f L7 . 6 4 12 . 2 9 l. \ t e t R e v e ñ r ¡ e s ttet8ev€llæ9 åû¡êf4etirtro¡t (t 7 . 2 8 1 = (s (1 4 . 0 0 ) = s fl ' . r - z l = $, l@tt:tt;¡ ç 3.!5 1 1 5. 6 3. 9 4. 5 x x 7 7 + Mu n i Lo t t x 13 32 . 1 8 To t a l : S 62 . L o s {6 0 . 7 4 } s r. 3 6 $ 495.56 Ne t : R E v e r l u ê g NeÊRewBues Cl o c k t o w e r Mu n i Lo t Ra ¡ l r o â d Mu n ¡ Lo t VT A G Mu n i Lo t Pa r k & Ri d e Lo t 10 . 7 2 ) = $ s 33 . 1 8 (1 4 . 0 0 ) = $ (r t . 2 8 l = 5 78 . 6 4 13 . 2 9 Mu n i Lo t To t a l : I 6s . 1 o S ( 6 0 . 7 4 ) 5 4 , f f S 1 , 5 9 e 6 6 To w n of Da n v i l l e I EV Ch a r g i n g Pr o g r a m Ev a l u a t i o n Re v e n u e Mo d e l s wi t h Pl a n n e d Pa r k Ri d e Lo t St a t ¡ o n s Re v e n u e Mo d e l : Pr o j e c t e d ba s e d on CU R R E N T RA T E S kW h / S e s s i o n St a t i o n Re v e n u e s Rã t e / k w h (A v e r a g e ) Cl o c k t o w e r Mu n ¡ Lo t 5 0. 3 0 x 7 x Ra i l r o a d Mu n i Lo t 5 0. 3 0 x 7 x VT A G Mu n i Lo t l S o. 3 o x 7 x Pa r k & R i d e l o t 2 5 o. 3 O x 7 x Se s s i o n s / D a y (A v e r a g e ) S St a t ¡ o n s Attachment B Gr o s s Re v e n u e s Ex p e n s e s Ne t Re v e n u e s Net Revenues Average Patron Ac c e s s Fe e Av g Da i l y Av g Da i l y Av g Da ¡ l y AvB Annual Cost per Session 5. 6 3. 9 7. 2 8. 8 X X X x 2 5 L X +$+$+S +$ r 7 17 . 7 6 8. 1 9 30 . 0 7 91 . 8 8 (1 7 . 2 8 ) = 5 (1 4 . 0 0 ) = 5 (3 0 . 0 0 ) = s {7 s . 0 0 ) = $' (s . s 2 ) = S (5 . 8 1 ) = S 0. 0 7 = 5 16 . 8 8 = 5 l\2,0].3.471 5 (2,L22.o41 5 24.60 s 6,159.38 sz.Lo 2.10 2.10 2.10 3.90 Mu n i Lo t 0. 3 0 x 13 4. 5 No t e s 1 ân d 2: Av e r a g e d¿ i l y s e s s i o n s wi l l no t in c r e a s e pr o p o d i o n a ì e l y w i t h nu m b e r of s t a t i o n s du e to lo w e r us a e e at A Ð A st a t i o n s Re v e n u e Mo d e l : Op t b n A kW h / S e s s i o n ( s 77 . s s s 12 9 . a 6 \ = S f1 1 . 9 1 ) = $ f4.347.83) s se s s i o n s / D a y ro t â l : s 1 s 9 . 4 4 s ( 1 6 s . 7 4 ) $ ( 6 . 3 0 1 $ ( 2 , 2 9 9 . 3 7 1 Gr o s s Re v e n u e s Ex p e n s e s Ne t Re v e n u e s Net Revenues Average Patron Re v e n u e s Cl o c k t o w e r Mu n i Lo t Ra i l r o a d Mu n i Lo t VT A G Mu n ¡ Lo t Pa r k & R¡ d e Lo t Cc l l ¡ b r a r v Mu n i Lo t Re v e n u e Mo d e l : op t ' þ n B S St a t i o n s Fe e Annual Cost x x x X X X x X X X 7 7 7 7 s s s q 0. 4 5 0. 4 5 0. 4 5 0. 4 5 5. 6 3. 9 7. 2 8. 8 L 1 2 5 +$+$ +S +$ 17 . 6 4 L2 . 2 9 45 . 1 0 13 7 . 8 1 .7 7 s 5 s (1 4 . 0 0 ) = s (3 0 00 ) = s (7 s . 0 0 ) = S 3.15 3.15 3.15 3.15 0. 3 6 = It . 7 2 l = 15 . 1 0 = 62 . 8 1 = s 132.73 s s (627.37) s s s,s11.90 s s 22,925.s6 s 0. 4 5 x 13 kW h / s e s s ¡ o n Se s s i o n s / D a y 26 . 3 3 s 12 9 . 4 6 1 = S f3 . 1 4 ) = S 11.144.961S 5.85 To t a l : S 23 9 . 1 6 s ( 1 6 s . 7 4 1 5 7 3 . 4 2 $ 2 6 , 7 9 8 . 8 7 Gr o s s Re v e n u e s Ex p e n s e s Ne t Re v e n u e s Net Revenues Average Patron st a t i o n Re v e n u e s Cl o c k t o w e r Mu n i Lo t Ra ¡ l r o a d Mu n ¡ Lo t VT A G Mu n i Lo t Pa r k & Ri d e Lo t Cc l l i b r a r v Mu n i Lo t Rw e o u e Mo d e t Op t b n C Ê St a t i o n s Ac c e s s Fe e Ac c e s s Fe e Annual Cost Session s s s s s 5 s X x x X X X X X 7 7 7 7 s 5 s 5 0. 4 5 0. 4 5 0. 4 5 0. 4 5 5. 6 3. 9 7. 2 8. 8 1 1 2 5 17 . 6 4 12 . 2 9 45 . 1 0 r. 3 7 . 8 1 í7 . 2 8 l ' = 5 (1 4 . 0 0 ) = s (3 0 . 0 0 ) = s (7 s oo ) = s (1 7 . 2 8 ) = s (1 4 . 0 0 ) = s (3 0 . 0 0 ) = 5 (7 s . 0 0 ) = 5 0. 3 6 (7 . 7 2 1 = r32.73 1627.371 5,511.90 22,926.56 497.73 5 1262.371 5 5,876.90 s 23,291.56 s 15 . 1 0 62 . 4 1 3.15 3.15 3.15 3.15 5 s s s 3 O. 5 5 x 13 l€ ì r v . h / S c s s - þ n {A v e r a g e } 4. 5 5e s s i o n s / Ð a y (A v e r a g e ) 1. 3 6 = S (0 . 7 2 ) = 5 16 . 1 0 = S 63 . 8 1 = S X X s 32 . 1 8 S f2 9 . a 6 l = S 2. 7 7 = 5 990.30 S 7.15 4.r5 4.75 4.15 4.!5 Ra t e y ' k w h S St â t i o n s ro t a l : s 2 4 s . 0 1 s ( 1 6 s . 7 4 ) 5 7 9 . 2 7 5 2 8 , 9 3 4 . 7 2 6r o s s Re v e n u e s Éx p e n s e s Ne t Re v e n u e s Net Revenues Average Patron Av g Da i l y Av g Da i l y Av g Da ¡ l y Avg Annual Cost per Session st a t i o n Re v e n u e s Cl o c k t o w e r Mu n i Lo t $ O. ¿ S x 7 x 5. 6 x Ra ¡ l r o a d Mu n ¡ Lo t S O. 4 5 x 7 x 3. 9 x VT A G Mu n ¡ Lo t S 0. 4 5 x 7 x 7. 2 x Pa r k & R i d e L o t S 0. 4 5 x 7 x 8. 8 x s s s s $s s s ( 7 1 2 5 1. 0 0 1- 0 0 1. 0 0 1. O 0 18 . 6 4 13 . 2 9 46 . L O 13 8 . 8 1 1. 0 o = S 33 . 1 8 s l? c ¿6 ì = ( 3. 7 L s 1,3ss.30 s Mu n i Lo t ê O. 5 5 x 1. 3 X 4. 5 X To t a l : S 25 0 . 0 1 s ( 1 6 s . 7 4 ) 5 8 4 . 2 7 5 3 0 , 7 5 9 . 1 2 .8.15