As States and companies are making commitments to cleaner, renewable generation sources, the electrification of end-uses continues to grow as another key step towards deep decarbonization of US energy systems. For Exelon in particular, electrification of end uses presents a strategic opportunity to improve the lives of customers in our communities by leveraging our clean generation fleet to reduce emissions across the economy and support a cleaner and brighter future. Carbon emissions from transportation make up nearly 28% of the US inventory, the largest emitting sector with aggravated local health impacts. The potential for electrification of the transportation sector is rapidly improving with the cost for batteries falling while performance improves. While light duty vehicles will be the first to transition, others will rapidly follow. Exelon has developed a strategy to advance electric vehicle adoption, leveraging the unique competencies of our portfolio companies.
Exelon’s enterprise electrification strategy is targeted at three primary levers for adoption: up-front costs; technology and infrastructure; and customer awareness. These three levers were validated at the 2019 Climate Leadership Conference during the Exelon hosted Strategy Exchange Session on electrification of fleet and barriers to adoption. These levers are being targeted through corporate and our operating companies where we are investing in technology, educating our customers, and pursuing favorable policy. We are also looking inward at our own transportation fleet of 8,500 vehicles to transition to electrified technologies.
Exelon’s strategy engages competencies in our competitive and regulated businesses. Through Constellation Technology Ventures (CTV), Exelon is investing in technology that will enable electric vehicles and electric vehicle charging, through the likes of Proterra, XL Fleet and ChargePoint. Through our Exelorate Growth program we are exploring new business models for transportation services, such as STEER, a monthly vehicle subscription service that specializes in serving drivers that want access to electric vehicles on a subscription basis as an alternative to owning, leasing or renting. And each of our utilities is at various stages of working with public service commissions and stakeholders to evolve regulations and supporting programs to promote electric vehicles and vehicle charging in our service areas. These programs may include residential, commercial and/or utility-owned vehicle charging, consideration of electric vehicle charging rates (electric vehicle only and/or whole house time of use), as well as educational outreach and/or innovation funding develop projects that serve underserved areas through initiative such as car sharing and buses.
A key element of the programs is a statewide network of utility-owned public electric vehicle charging stations. The first public charging stations went into operation in 2019 and the companies aim to install up to 850 stations, focusing on government and municipal sites, over the next four years. The EVsmart program will also enable home charging by providing rebates for residential customers and multiunit dwellings that purchase and install an eligible smart charger.
The companies will also offer a suite of electric rates that are designed to allow customers to manage the cost of charging their vehicle and minimize impacts to the distribution grid. Beginning in the second quarter of 2020 BGE customers with an eligible smart charger can begin using an EV-Only Time of Use (TOU) rate that will utilize the embedded metrology of the smart chargers, rather than a second meter, to bill TOU rates for the customer’s EV charging consumption. This innovative EV-Only TOU rate based off the embedded metrology will be the first of its kind in the industry. Pepco and Delmarva will also launch TOU rates and managed charging programs in 2020. Pepco and Delmarva have also developed an option where customers can choose to offset their energy use with Renewable Energy Credits, which provides for carbon-free charging. Delmarva and Pepco have applied this renewable option as the default for all of its public chargers creating one of the first carbon-free charging networks in the country. All of the companies will make demand charge credits available to qualified MUD, workplace and fleet customers for their charging solutions.
Another important element of EVsmart is education and outreach programs at each utility which includes webpages with a wealth of information and resources on EV savings, promotions, discounts, benefits, and utility programs, in addition to other forms of customer engagement.
In parallel with our clean generation fleet, beneficial electrification presents a strategic opportunity for Exelon to improve the lives of customers in our communities, reduce emissions across the economy and support a cleaner and brighter future. Electrification of transportation is a technology ready for transformation, and Exelon is working across the value chain to help make this happen now.
Exelon is a Bronze Sponsor at the 2020 Climate Leadership Conference.