Executive Summary

Canadian utilities play an important role with regards to the electrification of transportation, including electric vehicle supply equipment (EVSE), for both high-powered and low-powered electric transit systems, as well as hydrogen fuel cell electric transit systems. Canadian transit agencies recognize the need to develop robust utility relationships to ensure sustainable electrification initiatives. However, most major utilities in Canada are poorly prepared for transit electrification as most of the few utility-led transportation electrification strategies existent in Canada today are focused on light-duty electric vehicles (EVs) as personal passenger cars. This report provides a comprehensive market scan of electrification of transportation strategies launched by Canadian electrical utilities. It also provides a review of case studies and best practices across North America related to electrification strategies, including legislation and regulation that promote utility involvement in the electrification of transit fleets.

This market scan is based on documents available online on the websites of Canadian utilities. These documents are examined to identify strategies related to electrified transportation, with an emphasis on information related to electric buses. Overall, few utilities mention electrified transport strategies in any manner on their websites or in other publicly available documents. In cases where electrified transportation is mentioned, it most often relates to light-duty EV charging stations and networks or the purchase of EV fleets for utilities themselves.

Hydro Québec presents the most evident and transparent strategy among Canadian utilities with regards to electrified transportation. That utility strategy aligns the goals of the Province of Quebec with the utility’s own growth projections. In other parts of Canada, however, the situation is less promising. Some significant initiatives have emerged that involve utilities, such as Toronto Hydro’s support for the Toronto Transit Commission’s (TTC) Green Bus Program, transit-focused strategies at BC Hydro in support of TransLink’s electric bus program, and Newmarket-Tay Power Distribution Ltd. (NMTPD) support of York Region Transit’s electric bus program. However, few other examples of explicit transit electrification strategizing or planning exist within the Canadian utility sector. In Canadian jurisdictions where regulations do allow utilities to engage in businesses related to electrified transportation, some utilities are creating unregulated affiliates or using their unregulated affiliates to enter the electric vehicle marketplace. This can include providing for-profit or consulting services to electric bus fleet operators. For example, Envari Energy Solutions, an affiliate of Hydro Ottawa, designs and installs EV charging equipment and has been involved in Ottawa’s transition to electric buses in recent months [1]. This report also provides case studies of specific electric utility investments and rate developments that promote the electrification of transit fleets in Ontario, British Columbia and California. These case studies provide examples of best practices in legislation and regulation that can overcome transit electrification barriers. For example, California Senate Bill 350 redefines the state’s Public Utilities Code to allow utility investment in transportation electrification as an activity in the interest of the ratepayer. Electricity ratepayers, in general, are deemed to benefit from investments in transportation electrification assets owned and programs run by California’s utilities. This means those utilities can share the cost of EV and electric transit investments with all electricity customers, regardless of whether the ratepayer/customers own or operates an EV themselves. The case studies reviewed in this report also demonstrate ways in which utilities address the financial and infrastructure barriers of fleet owners moving to electricity as a fuel source. Several California utilities, for example, are replacing high-cost demand charges (i.e., the charges utilities levy to build the infrastructure required to deliver high-power electricity to customers) with subscription rates. They are also investing in make-ready infrastructure and electric vehicle supply equipment (EVSEs) as allowed for by the California Public Utilities Commission (CPUC) to build networks of distributed users overtime. CUTRIC -CR ITUC Know ledge Series Volume 2, No. 3

In brief, Canadian utilities and provincial ministries of energy can look to California for examples of leadership on experimental utility-led programming and regulation that has allowed for the growth in that state’s heavy-duty (transit) and light-duty (EV) marketplace, in the interest of action on climate change and domestication of energy supplies. Canadian case studies from British Columbia, Ontario and Quebec show that utilities can be involved in supporting transit electrification through unregulated business operations or regulated business operations. This is especially true if provincial regulators and political decision-makers make a concerted effort to recognize the value to all ratepayers of transit and transportation electric charging equipment investments in the fight against climate change.