5 Charging Infrastructure for Plug-In Electric Vehicles
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July 22, 2016 Ms. Kavita Kale Michigan Public Service Commission 7109 W. Saginaw Hwy. P. O. Box 30221 Lansing, MI 48909 RE: MPSC Case No. U-17990 Dear Ms. Kale: The following is attached for paperless electronic filing: Testimony of Douglas Jester on behalf of Sierra Club, Natural Resources and Defense Council, Environmental Law and Policy Center and Michigan Environmental Council Exhibits SC-1 through SC-9 Proof of Service Sincerely, Christopher M. Bzdok [email protected] xc: Parties to Case No. U-17990 James Clift, MEC ([email protected]) Ariana Gonzalez, NRDC ([email protected]) Laurie Williams, Sierra Club ([email protected]) Shannon Fisk, Earthjustice ([email protected]) Michael Soules, Earthjustice ([email protected]) Robert Kelter ([email protected]) STATE OF MICHIGAN BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION In the matter of the Application of CONSUMERS ENERGY COMPANY Case No. U-17990 for authority to increase its rate for the ALJ Hon. Dennis W. Mack generation and distribution of electricity and for other relief. DIRECT TESTIMONY OF DOUGLAS JESTER ON BEHALF OF SIERRA CLUB, NATURAL RESOURCES DEFENSE COUNCIL, ENVIRONMENTAL LAW AND POLICY CENTER, AND MICHIGAN ENVIRONMENTAL COUNCIL July 22, 2016 TABLE OF CONTENTS I. QUALIFICATIONS ......................................................................................................... 3 II. CONSUMERS’ ELECTRIC VEHICLE CHARGING PROPOSAL .......................... 7 III. THE COMMISSION SHOULD ACT TO ACCELERATE EV ADOPTION ............ 9 IV. UTILITY EV CHARGING PROGRAM STRUCTURE ............................................ 25 V. INTEGRATING EV CHARGING WITH THE ELECTRIC POWER SYSTEM .. 33 VI. PROMOTING DEVELOPMENT OF A COMPETITIVE EV CHARGING MARKET......................................................................................................................... 35 VII. SPECIFIC VEHICLE CHARGING RECOMMENDATIONS ................................. 41 VIII. LINE LOSS REDUCTION AND DISTRIBUTION SYSTEM OPTIMIZATION... 44 July 22, 2016 - U-17990 Direct Testimony of Douglas Jester on behalf of Sierra Club, Natural Resources and Defense Council, Environmental Law and Policy Center, and Michigan Environmental Council Page 1 of 61 1 I. QUALIFICATIONS 2 Q. State your name, business name and address. 3 A. My name is Douglas B. Jester. I am a principal of 5 Lakes Energy LLC, a Michigan 4 limited liability corporation, located at Suite 710, 115 W Allegan Street, Lansing, 5 Michigan 48933. 6 Q. What is the purpose of your testimony? 7 A. I review Consumers Energy’s proposal to initiate an electric vehicle charging program 8 and recommend that: 9 the Commission act to accelerate adoption of electric vehicles through utility 10 engagement in electric vehicle charging infrastructure, 11 the electric vehicle charging program be structured to be strategic, 12 comprehensive, and equitable in the deployment of charging infrastructure, 13 the Commission take steps to ensure that vehicle charging will be well integrated 14 with the electric power system, and 15 the Commission take steps to enable development of a competitive vehicle 16 charging market, while supporting utility engagement in this market. 17 I conclude testimony about electric vehicle charging with specific recommendations as to 18 how the Commission should respond to Consumers Energy’s proposal and structure 19 tariffs for electric vehicle charging as well as how the Commission should provide for 20 evaluation and revision of vehicle charging programs in future cases. 21 In addition, I am testifying concerning Consumers Energy’s proposals for various 22 expenditures on its distribution system. I have testified in case U-17735 that Consumers July 22, 2016 - U-17990 Direct Testimony of Douglas Jester on behalf of Sierra Club, Natural Resources and Defense Council, Environmental Law and Policy Center, and Michigan Environmental Council Page 2 of 61 1 Energy should be making specific efforts to reduce losses in its distribution system and in 2 case U-17317 that Consumers Energy should be adopting dynamic volt-VAR control and 3 the practice Conservation Voltage Reduction. With respect to both issues, progress can be 4 greatly facilitated by using data from advanced meters, which Consumers Energy will 5 have virtually completed deployment by the conclusion of this case. In this case, 6 Consumers Energy represents that it is advancing on both loss reduction and voltage 7 regulation. I testify in support of those efforts but encourage the Commission to begin 8 expecting Consumers Energy to produce concrete results, by requiring the Company to 9 report its results and by requiring those results to be reflected in the loss factor used to 10 project Power Supply Cost Recovery (PSCR) expenses. 11 Q. On whose behalf are you appearing in this case? 12 A. I am testifying on behalf of Sierra Club, Natural Resources Defense Council, 13 Environmental Law and Policy Center, and Michigan Environmental Council concerning 14 electric vehicle charging. I am testifying on behalf of Michigan Environmental Council 15 and Natural Resources Defense Council concerning Consumers Energy’s proposed 16 distribution system expenditures. 17 Q. Summarize your experience in the field of electric utility regulation. 18 A. I have worked for more than 20 years in regulating the electricity industry and in related 19 fields. My work experience is summarized in my resume, attached as Exhibit SC-1. 20 Q. Have you testified before this Commission or as an expert in any other proceeding? 21 A. Yes. I have testified in: 22 • Case U-17473 (Consumers Energy Plant Retirement Securitization) July 22, 2016 - U-17990 Direct Testimony of Douglas Jester on behalf of Sierra Club, Natural Resources and Defense Council, Environmental Law and Policy Center, and Michigan Environmental Council Page 3 of 61 1 • Case U-17096-R (Indiana Michigan 2013 PSCR Reconciliation) 2 • Case U-17301 (Consumers Energy Renewable Energy Plan 2013 Biennial Review); 3 • Case U-17302 (DTE Energy Renewable Energy Plan 2013 Biennial Review); 4 • Case U-17317 (Consumers Energy 2014 PSCR Plan); 5 • Case U-17319 (DTE Electric 2014 PSCR Plan); 6 • Case U-17674 (WEPCO 2015 PSCR Plan); 7 • Case U-17679 (Indiana-Michigan 2015 PSCR Plan); 8 • Case U-17689 (DTE Electric Cost of Service and Rate Design); 9 • Case U-17688 (Consumers Energy Cost of Service and Rate Design); 10 • Case U-17698 (Indiana-Michigan Cost of Service and Rate Design); 11 • Case U-17762 (DTE Electric Energy Optimization Plan); 12 • Case U-17752 (Consumers Energy Community Solar); 13 • Case U-17735 (Consumers Energy General Rates); 14 • Case U-17767 (DTE General Rates); 15 • Case U-17792 (Consumers Energy Renewable Energy Plan Revision); 16 • Case U-17895 (UPPCO General Rates); 17 • Case U-17911 (UPPCO 2016 PSCR Plan); and 18 • Case U-18014 (DTE General Rates). 19 In the past, I have also testified as an expert witness on behalf of the State of Michigan 20 before the Federal Energy Regulatory Commission in cases relating to the relicensing of 21 hydro-electric generation. I also have been listed as a witness on behalf of the State of July 22, 2016 - U-17990 Direct Testimony of Douglas Jester on behalf of Sierra Club, Natural Resources and Defense Council, Environmental Law and Policy Center, and Michigan Environmental Council Page 4 of 61 1 Michigan, prepared case files and submissions, and been deposed in cases before the 2 United States District Court for the Western District of Michigan and the Ingham County 3 Circuit Court of the State of Michigan, concerning electricity generation matters in which 4 the cases were settled before trial. 5 Q. Do you have specific qualifications in relation to electric vehicle charging 6 infrastructure? 7 A. In 2010, I served as an active member of the Commission’s electric vehicle charging 8 collaborative. 9 In 2012, my colleagues and I at 5 Lakes Energy, on behalf of the Pew Charitable Trusts, 10 engaged stakeholders in a number of States in roundtable discussions about the 11 development of electric vehicle infrastructure and drafted a report about best practices, 12 which informed Pew’s subsequent work in this field. 13 More recently, my colleagues and I at 5 Lakes Energy have produced integrated resource 14 planning tools for least-cost compliance with the Clean Power Plan in ten states. These 15 tools incorporate means to model the potential effects of various levels of electric vehicle 16 market penetration on the electricity system. 17 Q. Are you sponsoring any exhibits? 18 A. SC-1 Resume of Douglas B. Jester 19 SC-2 NRDC Report on Driving Out Pollution 20 SC-3 NRC on Overcoming Barriers to Deployment of Plugin EVs 21 SC-4 Richardson Paper on Electric Vehicles and the Grid 22 SC-5 Li et al paper on Indirect Network Effects in Vehicle Charging July 22, 2016 - U-17990 Direct Testimony of Douglas Jester on behalf of Sierra Club, Natural Resources and Defense Council, Environmental Law and Policy Center, and Michigan Environmental Council Page 5 of 61 1 SC-6 Consumers Energy Response to Discovery 17990-ELPC-CE-98 2 SC-7 Consumers Energy Response to Discovery 17990-ELPC-CE-93 3 SC-8 Lefkowitz Testimony (partial) in Maryland PSC Case 9418 4 SC-9 Consumers Energy Response to Discovery 17990-MEC-CE-49 5 Q. What materials have you reviewed in preparation for your testimony? 6 A. I reviewed Consumers Energy’s application in this case. In addition, there is a substantial 7 literature on electric vehicles and electrical vehicle charging that I have routinely read 8 over the last several years. For a summary of that literature that is most relevant in this 1 9 case, I recommend a recent report by staff of the Natural Resources Defense Council0F0F0F 10 that I sponsor as Exhibit SC-2. I have also reviewed the Commission’s orders and 11 selected portions of the record in cases U-17317 and U-17735. In addition, I cite sources 12 from my accumulated personal library on relevant subjects. 13 II. CONSUMERS’ ELECTRIC VEHICLE CHARGING PROPOSAL 14 Q. Please summarize Consumers Energy’s proposal to develop electric vehicle charging 15 infrastructure? 16 A.