AEP Signs On to Transportation Electrification Accord

The goal of the Transportation Electrification Accord is to educate policymakers on how to advance electric transportation in a manner that provides economic, social and environmental benefits.

AEP has announced that it is participating as a signatory to the Transportation Electrification Accord. The goal of the Accord is to educate policymakers on how to advance electric transportation in a manner that provides economic, social and environmental benefits.

The Accord outlines how transportation electrification can be advanced in a manner that benefits all utility customers and users of all forms of transportation, while supporting the evolution of a cleaner grid. The Accord also reflects broad stakeholder support for principles to guide the development of electric vehicle (EV) charging infrastructure.

Signatories include:

• In addition to AEP, other leading electric utilities such as Southern Company, Exelon, SCE, PG&E, SDG&E and National Grid.
• Major auto industry manufacturers and suppliers (GM, Honda, BYD, etc.)
• Industry organizations (EEI, Alliance for Transportation Electrification, Plug In America, Advanced Energy Economy, etc.)
• Non-governmental organizations (CERES, NRDC, Sierra Club, etc.)

Phil Dion, vice president of Technology Business Development said that “accelerating customer adoption of EVs is an important objective, as we can lower customer bills through the optimized use of the grid, while simultaneously increasing our revenues. The principles of this accord support our role as the critical enabler and integrator of EVs and charging infrastructure.”

Sandy Nessing, managing director of Corporate Sustainability added, “EVs are a fantastic example of how AEP can support new electric technology adoption that improves the environment, consistent with our sustainability objectives.”

Among the guiding principles of the Accord are the following statements:

• There is a clear case for electrifying transportation, which can provide benefits to all consumers (including the socioeconomically disadvantaged), advance economic development, create jobs, provide grid services, integrate more renewable energy, and cut air pollution and greenhouse gases.
• Accelerating an appropriate deployment of electric vehicle charging infrastructure based on market penetration projections along highway corridors, as well as throughout local cities and towns, is a critical element of electrifying transportation.
• It is critical to support electric transportation at the state and local government levels, whether it be through governors, state legislators, state commissions, state transportation agencies, state energy offices, mayors, or local governments.
• Under appropriate rules, it is in the public interest to allow investor-owned and publicly-owned utilities to participate in and facilitate the deployment of electric vehicle supply equipment (EVSE) and/or supporting infrastructure for residential and commercial applications in their service territories to accomplish state and local policy goals. The distribution grid is incorporating new grid-edge features such as advanced demand response and distributed energy storage. In that broader context, utilities are well-positioned to ensure that installed EVSE, whether owned by utilities or other parties, maximizes the public benefits of these innovations, through appropriate integration of these technologies in order to maximize electrical system benefits for all classes of customers.
• Utilities should proactively engage their regulators, consumers and all stakeholders in developing rate designs, infrastructure deployment programs, and education and outreach efforts that benefit all utility customers and allow reasonable cost recovery, while accelerating widespread transportation electrification that supports a reliable and robust grid.