Electric vehicle information

WH understands member-consumers have choices when it comes to transportation. As an electricity provider, electric vehicles (EVs) directly impact our business more than other vehicles or fuels. Therefore, we have a responsibility to be prepared and adapt our business accordingly, which may mean providing additional education and resources on a specific technology.

As consumers increasingly consider and choose EVs – and national projections show triple-digit growth in the coming years, Wright-Hennepin seeks to provide education on resources that are available to our members. Education is a cornerstone of the cooperative business model. If a Wright-Hennepin member-consumer chooses to purchase an EV, there are significant benefits to participating in a program or rate that will help our member-owned cooperative be as efficient as possible while also saving members money.

Six major automobile manufacturers, from Ford to GM, have announced they won’t produce internal combustion engines after 2040. If this transportation shift comes to fruition, it means more Wright-Hennepin members will have EVs, thus increasing the amount of electricity consumers use. Wright-Hennepin must be prepared to meet the increased electricity needs of its consumers.

Co-op members participating in an EV program doubled from 2021 to 2022. Wright-Hennepin must provide member-consumers who purchase EVs with reliable charging methods that don’t impact the reliability or cost for other co-op members. With approximately 80% of EV charging taking place at home, Wright-Hennepin must be prudent in planning for and supporting grid improvements and infrastructure needs.

Across the country, electric cooperatives are working with state and federal agencies to address infrastructure needs and ensure that their communities’ needs are met. Addressing the needs for electric transportation is not a one-size-fits-all approach. Some communities will benefit from public charging at parks, others need DC fast chargers on highways, and others won’t have either need but could benefit from electric school buses.

The bottom line is that Wright-Hennepin is seeing increased EV adoption among its member-consumer base. With approximately 80% of EV charging taking place at home, Wright-Hennepin must be prudent in planning for and supporting grid improvements and infrastructure needs. Our decisions are always rooted in our guiding cooperative values, which are centered on operating in our community’s best interests today and in the future.

Wright-Hennepin believes public policy decisions on EVs should be based on careful and thoughtful assessment of both costs and benefits. As always, Wright-Hennepin will advocate for policies we believe produce significantly more benefits than costs. Wright-Hennepin wants to ensure that if EVs become mainstream, electricity remains as reliable and affordable as it is today.

If a Wright-Hennepin member-consumer chooses to purchase an EV, there are significant benefits to participating in a program or rate that will help our member-owned cooperative be as efficient as possible while also saving the member money.

We offer the following:

• Wright-Hennepin offers rebates up to $ 500.00 to members that are installing a new hardwired, 240-volt, level 2 wall-mounted charging station.
• Members can save about half price on their electric cost vs. general service if they charge overnight.

Charging EVs overnight can reduce the need to build additional infrastructure. If member-consumers who own EVs charge overnight, it is good for the member (lower cost rate options), the utility (avoids demand spikes) and the environment (reduces the need to build new power plants). WH encourages all members with an EV to participate in a program where charging occurs during non-peak times.

According to an analysis by the Great Plains Institute, EV drivers contribute more to the Highway User Tax Distribution Fund than drivers of equivalent gasoline-powered vehicles. This is because the higher upfront cost of EVs results in higher motor vehicle sales tax and tab fees.

Furthermore, any EV tax should reflect the higher fuel efficiency of EVs. Over-taxing EVs today discourages adoption and slows market development. Wright-Hennepin supports comprehensive solutions to roadway funding challenges and the calculation of fair vehicle taxes that consider the higher fuel efficiencies of EVs.

As a vast array of additional products and technology that use electricity come online, the grid will need to be improved. Since our founding 85 years ago, we have consistently made investments into the grid to accommodate members’ evolving needs and technology changes that have become mainstream. Wright-Hennepin is proud of its proven track record of successfully and proactively adapting to increased consumer needs.

While Wright-Hennepin can make local decisions to benefit our members as a whole, the grid is a massive, interconnected system. Policymakers also play a significant role in ensuring infrastructure is available to meet consumers’ dynamic energy needs fairly and responsibly. Wright-Hennepin invites and encourages our members to actively participate in public discussions about grid infrastructure improvements.

It is worth noting that additional electricity usage provides more revenue to the cooperative, supporting infrastructure enhancements to ensure reliable service

Wright-Hennepin members participating in an EV program have doubled from 2021 to 2022. Just like vehicles with internal combustion engines, there are a variety of makes, models and price ranges of EVs.

Examples:

• The Chevy Bolt EV has an MSRP of $25,600 as of August 2022.
• The Nissan Leaf has an MSRP of $27,400 as of August 2022.

While upfront costs might appear higher in some models, EVs cost less to drive than internal combustion engines.

• EVs have lower maintenance costs due to fewer components needing fewer repairs.
• EVs have lower fuel costs.
• Some EV models are eligible for tax credits.
• Overall, battery costs are expected to go down while range is expected to go up.

Some of the technologies involved in EVs are outside of the scope of our business. We rely on the respective experts to make decisions aligned with established policies or protocols. For example, mineral mining is outside the scope of WH’s business. WH does not sell EVs or batteries. Our mission is solely to deliver the power, products and competitive pricing essential for improving the quality of life of the members and communities we serve.