ELECTRIC VEHICLES & PLUGIN HYBRID ELECTRIC VEHICLES A FEASIBILITY STUDY FOR THE CITY & BOROUGH OF WRANGELL, ALASKA April 26, 2013 Report Volume 1 Alaska Energy Authority Grant Agreement Number 7040070 Alaska Energy Authority GRANT AGREEMENT NUMBER 7040070 FINAL REPORT A feasibility study was conducted for the City of Wrangell regarding the use of electric vehicles (EV) and plug-in hybrid electric vehicles (PHEV) as alternative modes of transportation for the city’s vehicles. This report is submitted in fulfillment of the Grant Agreement between the City of Wrangell and the Alaska Energy Authority. Alaska Energy Authority | Wrangell Electric Vehicle Feasibility Study Disclaimer This report has been prepared at the request of the City of Wrangell, Alaska, and the observations, conclusions, and recommendations contained herein constitute the opinions of WHPacific, Inc. WHPacific has prepared this report using in part web-based sources including information from private, public and government sectors. WHPacific does not take responsibility for errors or omissions within these sources. Our purpose was to provide the City of Wrangell with information that was the most current, relevant and reliable in an effort help the City develop a more comprehensive plan for the potential acquisition and implementation of electric vehicles, plug-in electric vehicles and the various derivatives within this evolving technology. WHPacific, Inc. Alaska Energy Authority | Wrangell Electric Vehicle Feasibility Study Purpose and Limitations of the Feasibility Study A feasibility study is an analysis of the viability of an idea. The development of this feasibility study focuses on helping answer the essential question of “should we proceed with the proposed project idea?” All activities of the study are directed toward helping answer this question. Electric vehicles, related products and resources will continue to improve; in areas of cost, performance, development of emerging technologies and other developments. For these reasons, this study should be revisited periodically and updated to reflect changing circumstances in the marketplace. Costs of products, fuels, services are constantly changing. World, national and regional circumstances will impact these. Therefore, the economic evaluation in this study must be understood in this context. Estimates and approximate costs were provided for comparison only. Actual costs will depend on the numerous conditions at the time of implementation. WHPacific, Inc. Alaska Energy Authority | Wrangell Electric Vehicle Feasibility Study Acknowledgements In preparing this report, WHPacific has relied upon information collected from numerous sources including the City of Wrangell, SEAPA, Wrangell Municipal Light & Power, manufacturers of EV, PHEV, related equipment and infrastructure manufacturers; and web-based sources of information, both private and government-based all of which we gratefully acknowledge. WHPacific, Inc. Alaska Energy Authority | Wrangell Electric Vehicle Feasibility Study Glossary of Terms and Acronyms AC Alternating Current AEV All electric vehicle – plug-in capability with driving energy coming entirely from its battery BEV Battery Electric Vehicle Demand Side Utility related energy efficiency and load management programs Resources (also referred to as demand-side management or DSM) DOE Department of Energy EPA Environmental Protection Agency EVSE Electric Vehicle Supply Equipment ICE Internal combustion engine vehicle – vehicles with driving energy coming from liquid fuel kW Kilowatt NEC National Electric Code NFPA National Fire Protection Agency PEV Plug-in electric vehicle - Any vehicle with plug-in capability & includes AEVs and PHEVs PHEV Plug-in Hybrid Electric Vehicle – a vehicle with plug-in capability; driving energy can come from either its battery or a liquid fuel like gasoline, diesel or biofuels PIA Plug In America – California public charity promoting battery electric and plug- in hybrid vehicles for the public PSA Power Sales Agreement SAE Society of Automotive Engineers SEACC Southeast Alaska Conservation Council SEAIRP Southeast Alaska Integrated Resource Plan SEAPA Southeast Alaska Power Agency Smart Grid Computer-based remote control technology used in electric utility delivery systems WMLP Wrangell Municipal Light and Power WHPacific, Inc. Alaska Energy Authority | Wrangell Electric Vehicle Feasibility Study Table of Contents 1. Executive Summary…………………………………………………………… page 1 2. Contacts…………………………………………………………………………. page 3 3. Background Information…….………………………………………………… page 4 4. Electric Vehicles and Plug-in Hybrid electric Vehicles……………………….. page 7 5. Codes and Standards…………………………………………………………... page 28 6. Electrical Power Grid…………...……………………………………………… page 31 7. Smart Grid and Demand Side Management………………………………… page 32 8. Economic Evaluation....……………………………………………………….. page 35 9. Conclusions……………………………………………………………………... page 38 10. Recommendations……………………………………………………………... page 46 Appendices (Separate cover)……………………………………………………Volume 2 WHPacific, Inc. Alaska Energy Authority | Wrangell Electric Vehicle Feasibility Study 1. Executive Summary a. Project Overview The City and Borough of Wrangell Alaska requested a feasibility study to explore the viability of purchasing electric vehicles (EV) and plug-in hybrid electric vehicles (PHEV). The City desires to replace or supplement their existing fleet and in so doing take advantage of the abundant hydroelectricity available from the Southeast Alaska Power Agency (SEAPA) electric grid. This feasibility report lays the groundwork for Wrangell to make informed decisions regarding the use of these vehicles. Wrangell’s location, economy, demographics, environmental factors and long-range electrical planning are elements that are included in this study.This report includes the following sections: • Background information on the City of Wrangell • Codes and standards applicable to EV and PHEV • Wrangell Electric Grid • Smart grid and demand side load management of electric utility delivery systems • Economic evaluation of EV and PHEV • Conclusions • Recommendations • Appendices (under separate volume) b. Project Approach The feasibility study process for Wrangell consisted of three key stages: research current EV/PHEV market and the related equipment and technologies to support electric vehicles, consideration of Wrangell’s existing vehicle fleet, and report writing and documentation. Specific tasks completed in this study: • Understand the City of Wrangell relative to its fleet of vehicles and their use • Assess electric vehicles and associated equipment for use in the Wrangell area • Assess infrastructure requirements, applicability and costs • Provide direction regarding applicable codes and standards • Provide assessment of any impact to the area’s electric grid • Explore Smart Grid and load demand management to determine its applicability • Provide an evaluation of electric vehicle purchases and their operating costs WHPacific, Inc. Page 1 Alaska Energy Authority | Wrangell Electric Vehicle Feasibility Study c. Conclusions The electric vehicle market continues to grow and adjust according to numerous developments including advances in technology, national and global energy concerns and market demand. It is clear that the cost of ownership (purchase price and ongoing operating costs) is higher than internal combustion engine (gasoline) equivalents. Electric vehicles also require support systems along with infrastructure changes that can add significant costs as well. Small quantities of the right type of vehicles appear plausible and do not represent any significant cost impact. This study identifies those types of vehicles that are the most likely candidates for Wrangell. However, classes of vehicles including pickup trucks and specialized vehicles (e.g. refuse, sweepers, line trucks, dump trucks, super-duty pickups, fire, and ambulance) are not readily available. Custom electric conversions for these classes of vehicles are available but at a significant premium. Impact to the electrical grid is not a likely concern for the foreseeable future and the same holds for Smart Grid and load management products and services. The EV and PHEV markets are forecasted to grow modestly in the short term. However, until prices drop and technology issues are addressed, manufacturers will continue to meet public resistance to change. Government policy and legislation will also continue to influence buyer decisions. d. Recommendations Develop a business strategy that includes entry-level, short-term and long-term plans for both municipal and community use of electric vehicles. While the City is looking at specific fleet requirements, the community at large must be an integral part of their business planning. Costs must also be viewed in light of potential revenue streams. Revenue sources that should be considered from the use of EVs in the community include pay for use of public charging stations for tourism, residential and commercial and spin-off businesses to support and maintain electric vehicles. If the City pursues an electric vehicle implementation plan, it will be necessary to conduct a specific life-cycle cost analysis for vehicles chosen along with, support equipment, installation services and infrastructure. WHPacific, Inc. Page 2 Alaska Energy Authority | Wrangell Electric Vehicle Feasibility Study 2. Contact Information This Report prepared For: This Report Prepared By: City and Borough of Wrangell WHPacific, Inc. P.O. Box