Utility proposes huge EV charging network funded by ratepayers

Minnesota electric utility Xcel Energy aims to build a large EV charging network financed by increased rates, possibly including for customers who do not own EVs.

As reported by KSTP.com, Xcel Energy in August submitted a proposal to the Minnesota Public Utilities Commission to build, own and operate its own network of 730 charging locations by 2026. The project will cost approximately $170 million, according to the proposal. , which also says Xcel needs another $27 million from taxpayers between now and 2026 to help fund it.

Like previous utility-based charging infrastructure proposals, this could prove controversial as Xcel will increase electricity rates across the board, whether the customer has an EV or not. That effectively means some customers will pay higher rates to fund infrastructure they won’t be using.

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The proposal states that “filling stations will be included in the tariff base, meaning Xcel Energy’s customers will pay for the construction and maintenance of these facilities.”

Xcel also notes in the proposal that the 730 site figure equates to 1,470 connectors and 194 megawatts of charging capacity, leaving room for plenty of fast chargers. That would be a major upgrade for Minnesota’s EV charging infrastructure, but the KSTP.com report notes that the proposal has faced significant opposition due to the possibility of increased rates.

One of the largest utility-based programs to date is one in California that added 38,000 EV chargers over five years, was run by Southern California Edison but in this case was made possible with state money. Another California project involving widespread deployment of chargers has the potential to sway rate payers, but has not been publicly linked as a primary method of funding it.

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It’s unclear how many of these used chargers will qualify under the federal charging network, which targets 500,000 EV chargers by 2030, and funding is unlocked by meeting federal government requirements.

At the same time, there has been a spike in filling out network announcements—some of which relate to infrastructure legislation. Examples include networks from GM and EVgo, the addition of 1,000 chargers at 200 American TravelCenters, Mercedes’ network plans for 2,500 fast charging ports, and the Volvo-Starbucks network.