Determining an appropriate rate for public charging of electric vehicles

Toronto Parking Authority - Energy-based Rate Study

With electric vehicle adoption on the rise, agencies like the Toronto Parking Authority (TPA) are adapting to the times. The TPA engaged our team to undertake a study and provide recommendations for an energy-based rate that the TPA can implement at their electrical vehicle charging stations.

We conducted broad market and regulatory analysis of current energy-based rates and requirements. We then developed a financial model and analysis using the TPA’s financial and operating information to assess alternative energy-based rate structures. Lastly, we analyzed customer sentiments toward energy-based rates, leveraging both industry information and data we collected through a customer survey.

To inform our study, we reviewed rate structures in British Columbia and Quebec, and the residential pricing structure for electricity in Toronto. Looking to the US, we reviewed sector and state level rates, as well as those for Boston and New York City. We also undertook a regulatory analysis at the local, provincial, and federal levels to identify specific requirements related to transitioning to energy-based rates. This included reviewing connection procedures from Toronto Hydro and the Ontario Energy Board as well as metering requirements from Measurement Canada.

We presented the recommended rate structure on the basis that it resulted in no changes to the TPA’s current operations and financial performance. The structure also allowed for continued anticipated growth in Level 3 charging—the current fastest means of refueling electric vehicles.