1

I was reading this article on EV-charger pricing schemes. There are some vague references to states requiring per-minute pricing, but 0 explanations of that thing. A little research has suggested that it is not the case that states require per-minute pricing on EV chargers, but that they only allow per-kWh pricing by regulated utilities.

What is the reasoning behind these laws? I get that the sale of electricity by the big players is regulated because sanctioned monopoly stuff. Is this restriction on others just part of the monopoly grant? What's the deal here?

Improve this question
6
  • It's quite possible that the laws are just worded so as to regulate anyone who sells electricity, and didn't anticipate that anyone other than a major utility would do so. The precise legal situation may be different between those states, so it'd help if you could pick one to focus on.
    – Nate Eldredge
    Commented Sep 16, 2020 at 22:05
  • 2
    Note that this site is more about what the law says and how it applies, instead of the "reasoning behind" it; the latter is the domain of Politics.
    – Nate Eldredge
    Commented Sep 16, 2020 at 22:06
  • 4
    I’m voting to close this question because we discuss what the law is not why, that's politics.
    – Trish
    Commented Sep 16, 2020 at 22:18
  • 2
    @NateEldredge the help page does not stipulate this. Discussion on Law Meta seems to suggest otherwise.
    – Him
    Commented Sep 16, 2020 at 23:12
  • 2
    This was asked and answered on Politics.SE
    – feetwet ♦
    Commented Sep 17, 2020 at 19:23

1 Answer 1

Reset to default
2

In most areas of the law, anything that is not prohibited is allowed.

In regulated industries, such as the sale of electricity derived from the electrical grid, the reverse pattern is the norm. Everything that is not expressly authorized and licensed is prohibited.

In particular, utility regulators always regulate prices and that means that the regulator needs to publish the allowed price that it decrees following administrative hearings, and that means it needs a simple pricing structure.

Kilowatt hours pricing was developed to keep the market for electricity simple enough for regulators and consumers to not be outwitted by complex schemes by regulated utility companies, and once it became customary and prescribed, pretty much every utility regulator followed suit, although some utilities now allow peak and non-peak price kilowatt hour price variations.

Aa EV-charger business is a participant in the regulated industry of providing electricity and thus, is a utility, even though it is not your classic image of one (secondary market sales of electricity to consumers is new, although secondary market sales of electricity at the wholesale level have actually been around for a century or so). Therefore, they are stuck in the same pricing structure that utility regulators have in place until legislation or innovative new regulations change the status quo.

Also, keep in mind that for a charger of a given voltage and amperage, per minute charges are exactly proportional to per kilowatt hour charges, based upon a formula you can derive from basic electrical power formulas. So, it is easy to see how the two concepts would become muddled.

Improve this answer
7
  • 1
    This all makes complete sense. Weirdly, though, the EV charging ppl are, by law in many states, prohibited from charging by the kWh. That is the curious business here...
    – Him
    Commented Sep 16, 2020 at 21:02
  • 1
    kWh is also a derived SI unit. The only other allowed SI unit for the measurement is Joules, the factor of conversion is 3.6 Megajoules per kWh.
    – Trish
    Commented Sep 16, 2020 at 21:03
  • 1
    "for a charger of a given voltage and amperage" This is true, but EV chargers don't generally fit this description. They charge your car as fast as it will take a charge
    – Him
    Commented Sep 16, 2020 at 21:04
  • 1
    @Scott what shall they use instead? Joules or the foot-pound, which has no meaning in electricity?
    – Trish
    Commented Sep 16, 2020 at 21:04
  • They should use kWh. Right now they have to charge by the minute.
    – Him
    Commented Sep 16, 2020 at 21:05

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .