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.

The PJM electricity market faces a capacity shortfall, due to rising demand and a slow and inefficient interconnection process. As millions of people across the region face rate hikes due to this capacity shortfall, the states that are part of the PJM market are seeking new ways to take action to help keep power affordable and reliable. 

In the face of these challenges, some stakeholders are seeking to attract more natural gas power plants to PJM states. However, natural gas power plants are not the solution to this crunch. (One reason for this is the gas turbine supply chain, which is currently stretched to a breaking point: Gas turbines are being ordered up to eight years in advance due to record demand.) State lawmakers and regulators need to expand capacity quickly, and they need to tap non-gas solutions to do so. 

America is at a crossroads. For the first time in decades, we’re experiencing a sharp rise in load growth driven by data center expansion, a resurgence in domestic manufacturing, and increased electrification. Without effective policies, consumer costs could rise, businesses may face investment uncertainty, and grid reliability may be at risk. But that doesn’t have to be the case. 

The 2024 NV Energy Integrated Resource Plan (IRP) proceeding is coming to a close, with a decision expected from the Public Utilities Commission of Nevada (PUCN) by December 20, 2024.

In Nevada, an IRP proceeding is conducted every three years with the goal of ensuring that NV Energy has the resources it needs to reliably and affordably serve Nevada’s electric customers and meet state policy goals. However, NV Energy’s proposed IRP, similar to those preceding it, exemplifies how the IRP process encourages investment in new gas resources, despite the availability of cheaper clean energy resources, such as Nevada’s abundant solar, geothermal, and distributed energy resources increasingly found on Nevadans’ rooftops and driveways.