Advanced Energy Perspectives

In 36 states, electric vehicle (EV) drivers pay more in annual fees and taxes than drivers of gasoline-powered vehicles. As EVs gain market share, many state policymakers have moved to offset declining gas tax revenues by layering on EV-specific fees. These typically include additional registration charges, sales taxes on public charging, and per-kilowatt-hour (kWh) electricity taxes. While these measures are often framed as efforts to ensure all drivers contribute to road upkeep, they are frequently used to compensate for the long-standing inadequacy of the gas tax—a system that has failed to keep pace with inflation, rising construction costs, and improved fuel economy. The result is a growing patchwork of policies that disproportionately burden EV drivers, often charging them more than their fair share and more than many gasoline vehicle owners. This inequitable treatment risks undermining state and federal electrification and emissions-reduction goals.

Given the market surge of air and ground source heat pumps, Michiganders have more options than ever to efficiently and affordably heat and cool their homes with electricity. Especially when paired with additional energy efficiency measures, load management, dynamic rates, and distributed energy resources (DERs), the savings can be significant. But until customers upgrade their appliances and ditch the fossil fuels, many remain at risk. In Michigan, gas utilities are rapidly spending on capital-intense pipeline replacement and modernization projects, leading to higher and higher delivery costs for their customers.

If you’ve been tracking the contours of recent legislative sessions under the Gold Dome in Denver, you’ll likely have high expectations about Colorado’s ability to deliver ambitious, even nation-leading, clean energy bills year-after-year, spurring headlines and the envy of other states. Take, for example, last year’s Senate Bill 218 to modernize distribution-system planning, Senate Bill 16 in 2023 to cement a statewide commitment to net-zero emissions by 2050, Senate Bill 264 in 2021 to initiate “Clean Heat Plans” and innovative gas infrastructure planning, or Senate Bill 260 (also in 2021) to create stable multi-year funding streams for clean transportation initiatives—the list goes on.

What is a daily demand charge?  

A demand charge is a utility fee based on the maximum amount of energy a customer uses during a short period of time within a billing cycle. Nevada Power, a subsidiary company of NV Energy, is proposing to add a mandatory daily demand charge for its residential customers.

Under this plan, your electricity meter would be measured on a 15-minute cycle each day, and your bill will be based on the highest 15-minute period energy use during that day. For example, if your highest energy usage is from 6:45-7 PM on a day in July, the demand charge for that day will be based on this time, regardless of your usage during the rest of the day. This would be in addition to the basic service charge of $18.50 that customers already pay. This is something no other investor-owned utility (IOU) in the country currently does.