LONG ISLAND POWER AUTHORITY Electric Vehicle Supply Equipment

LONG ISLAND POWER AUTHORITY Electric Vehicle Supply Equipment Policy Considerations July 18, 2018 Justin Bell Director of Rates and Regulation • 1

Long Island’s EV policies should: ▲ ▲ Support New York’s ZEV and emissions reduction goals Empower competitive EV and EVSE markets (avoid picking winners) Maximize benefits and minimize costs to all Long Islanders Encourage efficient use of grid assets 2

Policy in action: ▲ ▲ ▲ Launched workplace charging rebate program Added EVs and chargers to PSEG Long Island fleet Residential smart charging proposed in PSEG LI Utility 2. 0 Plan Launched customer EV outreach and engagement campaign TODAY’S TOPIC: Innovative DCFC “set point” incentive proposal 3

PSEG – LONG ISLAND A Self-Regulating Rate Incentive For Public Chargers July 18, 2018 Daniel Zaweski Manager, Planning and Evaluation Energy Efficiency and Renewable Energy LONG ISLAND 4

Purpose of Rate Proposal • Address Potential Adoption Barrier caused by “Range Anxiety” — What if I need to charge between home and destination — What if I don’t have access to charging at home or destination • Remedy for “Range Anxiety”: comprehensive network of fast convenient public charging stations (high power DCFC) that is always easily accessible • Challenges ― ― Infrastructure must be in place BEFORE mainstream consumers will adopt v Low initial utilization v Existing Tariff Structures v Difficult business cases Multiple phases likely: v Phase One: Achieving a critical mass of geographic coverage (initial focus) v Phase Two: Responding to “usage hot spots” as driven by increased demand LONG ISLAND 5

A Proposed Solution: An Essential Charging Network • A Two Part Solution — ― • Part One: Development of geographic coverage requirement map v Elimination of “dead zones” v Ensure essential level of charging capability is available v Minimize redundant incentives Part Two: Offer an off-bill rate-incentive that caps overall $/KWH exposure (Set Price) v Incentive paid for defined time period v Prioritize availability of rate-incentive consistent with targeted “coverage map” v Incentive could be location or policy specific (lower incentive offered in load pockets, higher incentive offered in underserved areas) Rate Incentive Program: ― Charging Station utilizes existing tariffs. ― Utility provides an OFF-BILL INCENTIVE that offsets above target on set time period ― Incentive SELF-REGULATING – increased sales lowers average KWH cost closer to Set Price. LONG ISLAND 6

How It Works • • Example – for illustration only ― Set point of 40 cents/KWH, provided for a seven year period, after which normal rates apply ― Example: in a given month, normal utility bill is $471 to deliver 550 KWHs: effective cost of electricity is 85. 6 cents/KWH ($471/550 KWH). ― Provide off-bill reimbursement of 45. 6 cents/KWH ($250. 8 paid to customer) ― Amount of incentive naturally customized per location/customer, varies each month depending on actual use Important Details: ― Utility/Industry Collaboration: utility provides an incentive – market builds station and sells to customers ― Incentive provided on first-come/first-served, applications approved consistent with prioritization framework (coverage map) and interconnection queue ― Dedicated meter required, to allow transparent incentive computation ― Eligibility criteria established to maximize public benefit (high power, technical standards, open and equitable access, etc) ― Cost of incentive recovered through rates LONG ISLAND 7