In a significant shift for the state’s electric vehicle (EV) infrastructure plans, Maryland officials have halted a program that allowed utilities to install EV charging stations using ratepayer funds. The Maryland Public Service Commission (PSC) ordered the stoppage, citing concerns over low usage and ongoing maintenance issues.
The program, which has been in operation for about five years, permitted four major Maryland power companies, including Baltimore Gas and Electric (BGE), to set up charging stations at government buildings across the state. However, the future of this initiative is now uncertain as the PSC mandates a thorough reevaluation.
Benjamin Baker, a senior commission adviser leading the electric vehicle working group, emphasized the need for a critical reassessment. “We’re dealing with ratepayer incentives here, not free resources,” Baker explained. “It’s crucial that we ensure these installations are making a real impact.”
The decision has sparked a debate about the role of utilities in the EV charging market. David Lapp, representing the Maryland Office of People’s Counsel, argues for a complete utility exit from the charging business. Lapp points to the lack of profitability for utilities and the unfair burden placed on ratepayers, especially those with lower incomes.
However, utility companies like BGE defend their involvement. BGE spokesman Richard Yost stated that the program was initiated at the state’s request to fill gaps in the private charging market. He acknowledged the modest usage figures but attributed them to intentional placement in less-trafficked areas and the still-developing EV market.
The utility’s investment in the program has been substantial, with BGE alone spending approximately $15.5 million on charger installations. Of the 372 chargers commissioned by BGE, 127 are located in what are termed “environmental justice” communities – areas traditionally underserved and overburdened by environmental issues.
Yet, the program has faced criticism beyond just its financial aspects. Lanny Hartmann, an EV enthusiast and blogger, conducted a survey in 2022 that revealed significant operational issues. Of the 69 fast chargers installed by BGE, only 71% were fully functional. Many failed to meet the federal standard of 97% uptime, with problems ranging from network connectivity issues to physical damage.
These challenges highlight the complexities of maintaining a reliable EV charging network. BGE admits that about 34% of its chargers currently fall below the required uptime standard, though the company is actively working to improve this figure.
Despite these setbacks, Maryland’s broader EV adoption goals remain ambitious. The state recently celebrated surpassing 100,000 registered EVs, a 59% increase from the start of 2023. This growth aligns with Maryland’s climate objectives, including a 60% reduction in emissions by 2031 and achieving net-zero emissions by 2045.
The state continues to encourage EV adoption through various means, including tax credits and rebates. Additionally, Maryland is expanding its charging infrastructure through federal programs like the National Electric Vehicle Infrastructure Program, which aims to install chargers along major highways.
As the PSC reassesses the utility-led program, key questions remain about the future of EV charging in Maryland. Should utilities continue to play a role in charger installation and maintenance? How can the state ensure equitable access to charging infrastructure while also meeting its climate goals?
The answers to these questions will shape Maryland’s approach to EV infrastructure in the coming years. As the state navigates this complex landscape, balancing the needs of ratepayers, utilities, and the environment will be crucial. The outcome of this reassessment could set a precedent for other states grappling with similar challenges in the transition to electric vehicles.
For now, as Maryland pulls back on its utility-run charging program, the state finds itself at a crossroads. The path forward will require innovative solutions and careful consideration to ensure that the growth of EV infrastructure aligns with both economic realities and environmental necessities.