Philip Moeller

A new study shows that electricity pricing policies may become a major obstacle to electric vehicle (EV) affordability, but time-of-use pricing – a hallmark of competitive markets – could be the solution.
 

Competitive electricity markets will stimulate plug-in hybrid-electric vehicle (PHEV) technology, facilitate integration of PHEVs with the power grid, and unlock consumer benefits. This message emerged during a conference sponsored by COMPETE and the University of Illinois-Springfield that explored the future of plug-in hybrid electric vehicles and the smart grid.

The COMPETE Coalition will sponsor a day-long conference October 5th to discuss the opportunities and challenges facing national electric vehicle deployment, grid modernization and how they tie into America’s Smart Grid future.
 
The free conference – Electric Vehicle Technology and Grid Modernization: How PHEVs and Smart Grid Come Together – takes place at the Phoenix Park Hotel in Washington, D.C., and is co-sponsored by the Center for Business and Regulation, College of Business and Management, University of Illinois-Springfield.
 

During last week’s regular open meeting, staff with the Federal Energy Regulatory Commission presented their 2009 State of the Markets Report, and the outcome for energy consumers was profound.  Prices for natural gas were down by 50 percent across the country, and as a result electricity rates declined proportionately in the organized competitive markets, where gas is a key generation fuel. Costs for both natural gas and electricity were at the lowest levels seen since at least 2002 – even earlier in some regions, FERC staff reported.

Last week’s regular meeting of the Federal Energy Regulatory Commission featured a staff assessment of the outlook for energy markets this winter, including the “exciting” development that natural gas and electricity prices have fallen to their lowest levels since 2001. Forward prices for natural gas this winter are significantly lower than at this time last year, and gas was placed into storage earlier this year for consumption during peak demand winter months at an average price of $3.45, nearly a third of the $9.40 average cost last year, FERC staff reported.