Power companies say Electric Cars are cheaper to drive

Electric cars have been in the news for some time now with the advent of products from Tesla and Nissan already out while Ford, Toyota and Mitsubishi follow close behind. Still the question on our mind has always been what does it cost to power these cars compared to a combustion car. According to a recent survey by a Washington, D.C. based research group, it can be as little as $40 a month. Will $40 worth of gasoline get you through even one week?

The research group is known as the Northeast Group, LLC is focused on the smart grid market in both developed and developing countries, offering market research reports and consulting services.

"In all scenarios we studied, the costs to recharge an electric vehicle were cheaper than fueling a gasoline-powered car. In the most likely EV charging scenarios, costs were approximately one-tenth to half the costs of fueling a conventional vehicle with gasoline," according to the study. The cost analysis looked solely at power expenses, not considering other operating costs.

Power companies across the country are preparing for a flood of EVs as this reality sinks in. They are preparing to serve these new customers in two ways: time of use tariffs or flat rates. Time of use relates to recharging during off-peak hours, usually evenings or weekends. Flat rates are a simple stated amount for recharging a vehicle monthly, such as $40 per month.

“Utilities are now studying which tariffs will best accommodate the increasing number of electric vehicles on US roads," according to Northeast Group, LLC.
The study, titled United States Smart Grid: Utility Electric Vehicle Tariffs, provides an overview of EV tariffs from 10 different utilities in California, Georgia, Michigan, Nevada, Oregon and Texas. A description of the EV tariff structures offered is provided along with a list of utilities and their specific EV tariffs plus a comparative analysis thereof. The study also covers how different tariffs' costs vary for EV owners depending on the distance driven and when an EV is recharged.

If interested in purchasing the study, click here.