Senate approves restrictions on utility cost recovery for high-speed EV chargers

The Senate adopted committee amendments to S.275 on Feb. 26 that would prevent utilities from recovering the installation cost of high-speed electric-vehicle (EV) charging stations through standard electric rates charged to all customers.

Sponsor summary: The sponsor said the bill would prohibit electric utilities, including investor-owned utilities and electric cooperatives, from placing the capital cost of EV chargers into rate base and passing those costs to all ratepayers. The sponsor said the measure preserves options for entities that want to install chargers: owners may finance chargers through charger-generated revenue, municipality funds, or federal grants rather than using general rate-recovery mechanisms.

Committee amendments: The subcommittee and committee amendments addressed technical issues and clarified that existing utility investments approved earlier (for example those previously granted permission by the Public Service Commission) may still be recovered under prior approvals. Amendments also clarified that municipalities acting as utilities can install chargers using non-rate funds (for example local funds or grants) if they so choose.

Questions and rationale: Senators asked whether electricity for charging would be paid by the vehicle user (the sponsor said yes) and whether the bill covered different charger levels. The sponsor said the bill focuses on high-speed/fast chargers (level 3 and above) rather than level 2 or trickle charging that municipalities or park systems might already host.

Vote and outcome: The committee amendment was adopted on the floor by voice vote, and subsequent technical amendment was adopted; the bill received a second reading with appropriate votes recorded. Sponsors said the measure is intended to avoid subsidizing private charging infrastructure with utility customers' rates.