Q&A with the Orlando Utilities Fee’s Peter Westlake.

Anybody who would deploy any type of large-scale EV charging mission must work carefully (and early) with their native electrical utility. This could be a advanced endeavor, particularly for firms that work in several areas, as there are round 1,600 utilities within the US, topic to all kinds of various state and native regulators.

Lots of the firm execs we communicate with right here at Charged have burdened the significance (and the complexity) of working carefully with utilities, and a few of them blame utilities for being hidebound, slow-moving, and/or bored with selling EV adoption.

None of those descriptions apply to the Orlando Utilities Fee (OUC). Since 2010, OUC, a municipally-owned public utility, has put in a whole lot of public charging stations, some powered by photo voltaic arrays. The company additionally not too long ago offered a sequence of webinars on electrification for fleet operators.

Peter Westlake is OUC’s Supervisor of New Merchandise and Companies. He additionally serves on the Board of Drive Electrical Florida, and chairs the Florida Electrical Energy Coordinating Group, which represents a lot of the utilities within the state of Florida, and leads the Group’s subcommittee for electrification. He tells us that Florida utilities have been very engaged in electrification of transportation since OUC led its first electrification roundtable again in 2018.

Mr. Westlake is in a singular place to know what the powers that be are considering and planning in terms of electrification, not solely in Orlando, however all around the state.

Peter Westlake: I’m the Supervisor of New Merchandise and Companies. What meaning is, we search for methods to both improve gross sales on current merchandise, or search for potential income alternatives to diversify our income streams. One of many greatest areas we deal with is the electrification of transportation, as a result of it’s a singular alternative for utilities within the development of electrical energy gross sales.

Charged: Are you able to stroll us by how a utility decides to put money into EVs and charging infrastructure? 

Peter Westlake: It relies upon quite a bit on the construction of the utility. Municipally-owned public utilities and investor-owned utilities have completely different guardrails so far as what they will and might’t do. As an illustration, in our jurisdiction, to put in electrical automobile infrastructure, we don’t should receive approval from the Florida Public Service Fee (PSC), whereas Duke and Florida Energy & Gentle do. 

At OUC, we see investing in EVs as an growth of our service territory by one quarter to at least one third of a home, for those who think about that three to 4 electrical autos characterize about the identical kind of load that a further home would possibly require. As a municipal utility, we’re constrained inside our jurisdiction. Supporting EV charging and inspiring possession of EVs is a singular alternative for load development with out really increasing our providers to new clients.

To acquire approval for the set up of EV infrastructure, OUC’s monetary workforce should first approve the technique, after which we formally current it to the board. The technique behind our presentation is that an funding in EV charging infrastructure promotes the adoption of EVs. The promotion of EVs gained’t essentially present up in OUC’s charging hub, as a result of 80% of charging occurs at house or at work, however it can present up within the service territory. So, investing on a break-even or a loss chief foundation for Stage 2 or 3 charging stations is an efficient factor, as a result of it removes a number of the vary anxiousness that individuals have, which is a barrier to adoption. When you take away that concern, we forecast seeing an inflow in autos. And I’m blissful to share that that forecast has held true.

To offer an instance, Orlando is at the moment quantity two within the state of Florida, and Florida is quantity two in the USA, for EV adoption. Again in 2018, there have been roughly 2,300 EVs in OUC territory. In January 2022, there have been 5,000. This previous January there have been 10,000, and in April there have been 15,000. We’re seeing the S curve. And I’d wish to assume {that a} portion of that’s due to the applications we’ve put in place to encourage the expansion.

Charged: You aren’t simply offering electrical energy, you’re additionally working charging stations. It appears to me that working charging stations is a tricky technique to make a revenue—a fairly low-margin enterprise.

Peter Westlake: Effectively, the high-speed chargers not a lot. If we have a look at a Tesla charging hub that’s working in our service territory, it drives a reasonably vital income alternative. These are working within the black in a short time after being put in. We took a charging hub reside in July that is among the largest common charging hubs. It options 20 CCS DC quick charging stations and it’s situated within the coronary heart of downtown Orlando. We consider that it’s going to at the very least break even, if not higher, within the close to future. And that’s as a result of, as you get the load up, you begin to see extra income are available.

As a utility, I’ve the distinctive alternative to have a look at the entire story behind an EV charging hub. If somebody solely spends $100 with me yearly to cost their automobile at considered one of my high-speed chargers, I’m nonetheless in all probability going to see within the neighborhood of a further $400 or $500 in house charging. So, wanting on the entire image, each EV that OUC helps to place in place represents 1,200 miles of driving. Issue at a price of 0.33 kWh per mile, and that’s extra power development.

Charged: So even for those who lose slightly bit working the chargers, you’re profitable as a result of that encourages EV adoption total.

Peter Westlake: Precisely. And regardless of who operates the charging stations, we’re the power supply, so long as they’re inside our service territory. And truthfully, I’d adore it if charging operators like bp pulse and Tesla come into our service territory and construct out the charging hubs, as a result of OUC doesn’t essentially have to be within the charging enterprise. We have to be within the power enterprise. However I additionally know that, for those who look again on the historical past of gasoline, when cars first began out within the early teenagers, they offered gasoline at {hardware} shops and grocery shops and pharmacies and issues like that. It wasn’t till Texaco really began to construct gasoline stations that the gas ended up in the proper spot.

Charged: In California there’s been some backlash to the thought of utilities being charging operators. A few of the impartial networks are afraid massive utilities will freeze them out of the enterprise. Is that a problem in Florida?

Peter Westlake: I believe it’s a notion situation. OUC doesn’t essentially wish to be an operator, so we might fortunately be a part of arms with anyone who desires to function, however we’d like public charging to occur, so within the absence of exercise, we take over. Two, three, 4 years from now, OUC might promote these property to entities who’re desirous about solely working these hubs. And that’s not a unfavourable influence to us as a utility, as a result of we’re within the enterprise of promoting power, not charging stations. Proper now, except for Tesla, there’s no person putting in sufficient charging stations to have the ability to take the load. In consequence, OUC is prepared to make the funding for the charging infrastructure. However when extra individuals change into vested in working these EV hubs, I’m fairly certain OUC would think about handing the reigns over to different entities, from an operational standpoint.

Nevertheless, I do know that there’s going to be areas in low- and moderate-income neighborhoods the place it is probably not worthwhile to place in charging stations, however it is going to be essential so these communities can have the identical entry that everybody does. I consider we’ll see the utilities work to resolve that downside. 

Charged: I see Large Oil transferring into the charging house, and having a little bit of a suspicious thoughts, I ponder about their intentions.

Peter Westlake: Effectively, I believe they’ve really seen the adoption charges for EVs. They’ve seen what’s occurring in different international locations and what’s occurring within the US and so they acknowledge that their market share will fall, and so they’ve invested closely in branches like bp pulse and Shell Recharge and others. I believe you’re going to see the gasoline station mannequin change slightly bit and have it serve two masters. And actually, we’ve had good conversations with bp pulse and with Shell Recharge in our service territory.

Charged: Let’s discuss capability. The anti-EV crowd is fond of claiming that EVs are going to “crash the grid.” Is that an issue? Are you going to expire of technology capability?

Peter Westlake: From the macro perspective, the evaluation is that if each automobile that’s at the moment operating on gasoline adjustments over to electrical, you would need to double technology capability on the grid, and that scenario can be problematic.

Nevertheless, you have to dig into the small print and ask: when do they cost? They cost at evening. That’s our pure valley after we’re not getting an terrible lot of energy consumption demand. So it turns into a very long time earlier than it begins to tax the grid. Will or not it’s an issue? Most definitely there might be conditions that we have to deal with when the tipping level occurs. The tipping level might be at 50%, and we’re nonetheless distant from 50% saturation. 

80% of charging or extra occurs at both house or office, and if all people’s charging at house in a single day, I don’t see this as being an issue. 

We’ve bought two EVs in our household. My spouse drives a Tesla and I drive a LEAF. We each get our charging at house on Stage 1. We didn’t even set up a Stage 2 charger, as a result of we get sufficient capability by Stage 1 to replenish what we’d like for the following day.

Charged: Have you ever bought any vehicle-to-grid initiatives occurring?

Peter Westlake: OUC is beginning to consider that. A part of the reticence about moving into vehicle-to-grid was the battery warranties. You begin taking the battery and going each methods with it, the producers are a bit leery protecting the guarantee since you’re utilizing the battery sooner than you’d naturally. OUC hasn’t gotten concerned with it, however there are actually solely sure use circumstances, in my view, that it is smart. These are rolling batteries, in order that they should be the place I want them on the time I want them. A few of the higher use circumstances are issues like faculty buses, the place you already know the place they’re going to be at anyone given time.

The opposite risk is to mitigate demand. If I’ve bought 200 staff which might be plugged in at my office, I’m going to create demand. And for those who create a brand new peak, then you definately get into a distinct price stage. Companies who sponsor office charging are going to wish to put in managed charging to make it possible for they don’t set off demand expenses.

Those self same firms might additionally say to their staff, “Would you thoughts if, throughout the day whilst you’re plugged in, I exploit your battery to mitigate my demand stage on my constructing, and I would have the ability to cut back my power price as a result of I’ve carried out that. I’ll offer you free charging for those who give me entry to your battery once I want it.” These are fashions that I believe are going to occur.

Charged: Whenever you say it issues the place the automobile is, that suggests that you have to have some type of a system to know the place these autos are plugged in. The CEO of Nuvve, an enormous participant in V2G, instructed me that in Europe, they’re method forward of us by way of details about the grid—extra sensible metering and that kind of factor.

Peter Westlake: OUC has 100% sensible meters in our service territory. We’re about to leap right into a program the place we will decide the place persons are plugging in EVs, both Stage 2 or Stage 1. Having that information from our grid will assist us perceive the place EVs are plugging in, so we will higher plan our grid and determine areas the place we’d have issues.

The electrical signature of a charging station is a bit completely different than a fridge or a freezer. You may tease out the place a Stage 2 or a Stage 1 charging station is situated by five-minute-interval information. In the event you plug a automotive right into a charging station, energy draw will ramp up shortly after which it can trickle down, whereas a fridge will come on and keep on. It’s a signature that individuals can really search for. A wise meter provides you the information, however there are software program applications which might be capable of analyze the information and say, “I believe a Stage 2 is correct there.”

Charged: We write quite a bit about industrial fleet operators, and one matter that’s frequently developing is how getting utility service to a charging depot could be a massive bottleneck. Are you able to give me an outline of the process for a charging depot to get hooked as much as the grid?

Peter Westlake: A conventional fleet isn’t a key account for a utility. It’s in all probability a bunch of vans which might be working in a gravel lot with a single hut and a lightweight swinging in it and a pc, proper? Not a lot of an influence draw. Unexpectedly you electrify it, you’ve bought an enormous buyer. So that they’re not on our radar proper now. We’re not within the enterprise of speaking to fleets on a common foundation. We speak to Common Studios, we speak to the airport, we speak to the hospitals, as a result of they’re giant clients, and we’re higher attuned with what they’re doing. However EV fleets are new issues which might be occurring. At OUC we’re taking steps to rectify this by reaching out to native fleet operators.

We’re beginning to see the fleets and utilities acknowledge that we’re two disparate teams that have to work collectively. As an organization, you’ll be able to’t buy 100 electrical autos after which ask your native utility to come back arrange the charging infrastructure shortly. In consequence, OUC is attempting to achieve out proactively and begin to deal with this want earlier than the fleet is bought. Actually, we’re attempting to prepare a industrial ride-and-drive occasion that will go throughout the state of Florida within the fall, to achieve our fleet clients. We procured a database that tells us who’s investing in fleet autos, and we’re attempting to interact them in a dialog that claims, “In the end, you’re going to alter your fleet as a result of the TCO (whole price of possession) goes to power your CFO to make you purchase a bunch of EVs. Let’s get forward of that and begin speaking about what the true prices are, and let’s speak concerning the timing. It takes a 12 months to get a transformer. In the event you’re going to discover putting in EVs that can take your energy load over what I’ve bought allotted for you proper now, I’ve bought to improve your infrastructure. It’d take me one to 2 years to do this, so the earlier I’ve a dialog with you…”

Now, I can virtually assure that fleet clients are usually not going to go all within the first 12 months. They’ve bought to get used to an entire new know-how, so they could solely plug in two or three pilot autos to begin. And that’s not going to be on our radar as a result of you are able to do that with an electrician. Ideally, we get them on the pilot stage so we will say, “When that pilot’s profitable (and we all know it is going to be), you’re going to order 100 extra of this stuff and you have to be in lockstep with us planning for that in order that we will order the transformer, order the upgrades and get them on the listing. So when the automobiles arrive, you’ve bought locations to plug them in.”

There are at the moment over 100,000 industrial autos within the metropolis of Orlando, and an estimated 1,000 fleets reporting as lively in our service territory. If all of them determined to immediately undertake EVs for his or her fleets, OUC can be extraordinarily challenged with implementing the mandatory infrastructure to assist that new adoption price. In consequence, we actually wish to get forward of that risk.

We simply joined the Trucking Upkeep Council, which is a fleet group, and we attended their convention right here in Orlando. We have been considered one of solely two utilities that attended. That’s a nationwide convention, and solely two utilities confirmed up. So these are two teams that have to get collectively, and they should begin doing it now.

Charged: What a couple of particular instance? Let’s say I name you up and I say, “I bought a fleet. We’re going electrical, and I want seven megawatts of energy.” What steps are we going to should undergo and the way lengthy will that take?

Peter Westlake: Effectively, the reply depends upon extra info I would wish. What sort of energy is already served on the location? Do I’ve seven megawatts of energy functionality? I won’t have a transformer sufficiently big to have the ability to dispatch that. At a minimal, if I’m going to improve the transformer, it’s in all probability a 12 months to do this kind of work. If I’ve bought to convey energy, like a brand new duct financial institution or a brand new main energy supply to the placement, that would prolong the mission into two years. If I want to put in a brand new substation, then now we’re speaking years. For instance, we’ve been in conversations with LYNX, our mass transit company right here in Orlando, for 2 or three years. We all know that they’re planning so as to add 150 autos within the close to future, and we all know we have to be planning for that. The lead time may be enormous in our enterprise, which is why we have to know what your plans are throughout the pilot stage, not throughout the transition part.

Charged: Are you able to give me any examples of EV fleets that you simply’re serving proper now?

Peter Westlake: LYNX is an enormous one. Their downtown core of buses is galvanized. They’ve gained some federal Low-No grants that’ll convey them as much as 40 or 50 e-buses. They’re planning to be 50% electrical, 50% CNG by 2027. That’s one giant fleet that we’re working with. We’re additionally working with Amazon—they’re hubs for charging in our service territory.  

This text appeared in Problem 65: July-September 2023 – Subscribe now.