Hybrid Cars May Raise Cost of Electricity
I guess it’s only a matter of time and I think that this is problem that’s been forecasted so measures may have to be underway. Only, the adjustments to be made is projected to be very expensive.
Bloomberg reports that as many car owners in California are now getting into the hybrid rave and while carmakers are continuing to push and produce electric cars, very important upgrades to California’s power grid may soon be unavoidable. Because right now, there are limited areas as to where these cars can be recharged, it may soon be necessary to build additional infrastructure to accommodate this. What that means for California is that the state may soon be besieged with larger power bills.
Transformers and more plugs all over the state should be installed and upgraded and while that may eventually be cost-effective, everyone, even those without hybrids, will be affected by the power increase.
California’s push to lead U.S. sales of electric cars may result in higher power rates for consumers in the state, as a growing number of rechargeable vehicles forces utilities to pay for grid upgrades. The autos’ effect on electricity fees is being reviewed by California’s Public Utilities Commission this month as the most populous U.S. state will require Toyota Motor Corp., General Motors Co., Honda Motor Co., Ford Motor Co. and Nissan Motor Co. to sell more plug-in vehicles from late 2011.
Power companies including Southern California Edison, the state’s largest, have to install new transformers and meters to handle greater demand and prevent blackouts when autos are being charged at outlets. Utility rates will rise to cover the costs, said Travis Miller, a Morningstar Inc. analyst in Chicago. “If you look at the kind of money that will be needed for a full smart grid and support for electric vehicles, then you are talking about a substantial amount,” Miller said in a phone interview. The spending may total “multiple billions” of dollars over a decade or more, he said.
From model years 2012 through 2014, the largest carmakers by volume in California must sell about 60,000 plug-in hybrids and electric cars combined, according to the state Air Resources Board. President Barack Obama is aiming for 1 million plug-in cars on U.S. roads by 2015 to curb tailpipe emissions and cut dependence on foreign oil.
Via Bloomberg
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