In light of the 100% mandate and the push for electrification, Minnesota received more than $614 million from the federal government to advance energy-related projects in the state. A large chunk of these funds will go to Xcel Energy, an investor-owned utility company, to fund a major power line project and additional funding for hydrogen production. However, despite a steady stream of federal dollars, Xcel continues to propose extreme rate increases and invests in sectors that do not benefit the totality of their ratepayers. 

 Earlier this year, Xcel convinced an administrative law judge to recommend residential rates be raised 12 percent over three years. In a surprising move, state regulators disagreed with the utility and lowered the increase to 9.6 percent. In response, Xcel  retracted its proposed investments in electric vehicle (EV) charging infrastructure.

 To ensure a capable electric grid system and swift build-out of EV charging stations, regulators must encourage utilities to prioritize reliable energy production and work to remove barriers that hinder the private sector from installing EV chargers. 

 A report from earlier this year found utility ownership of EV charging stations is “generally not in the public interest.” This is because regulated monopoly utilities control where distribution lines are placed, allowing them to unfairly compete connecting to the grid their own EV charging over private market competitors.

 For instance, electric utilities levy additional “demand charges” against the commercial class of energy users whose energy usage spikes for certain periods of day. This means nearly every time a fast-charging station is used, the company incurs a demand charge that is added to their monthly bill, often totaling more than the revenue received from the charging station. As a result, there’s little incentive for the private market to go out on a limb to invest oftentimes more than $100,000 in an EV charging station if the initial cost is followed by operating at a loss.

 Additionally, public charging stations have grown unreliable, frequently being under the maintenance of electric utilities who have little incentive to keep charging stations operational after installation. Utilities are quick to collect subsidies and funding to install stations, but that same revenue doesn’t exist for ongoing maintenance, leaving many charging stations inoperable. In fact, this year a J.D. Power survey found that one in five EV owners experience a malfunction when attempting to charge at a public charging station and were unable to use the charger. 

 If policymakers are serious about expanding access to charging stations, they must ensure a marketplace that encourages private sector installation of chargers, allowing them to do what they do best, serve consumers. With the goal of convenient locations in all corners of the state, the private sector is the obvious choice to be the primary caretaker of a nationwide network of EV chargers. Just as they have done for fossil-fueled vehicles, private businesses will adapt and serve consumer needs in a fair marketplace. 

 It is time for lawmakers and regulators in Minnesota to support that transition by making it competitive for the private sector to invest in charging stations and encouraging utilities to focus on their primary purpose of power production.