eVgo charging station with fast charger

California's electric car charging deal with NRG clouded with controversy


The $100 million to be invested by NRG in building the eVgo electric car charging network in California will dramatically expand electric car charging access, but some advocates are raising red flags.

Three weeks ago California Gov. Jerry Brown and NRG announced a deal that both settled one of the legal cases arising from the California energy crisis a decade ago, and also started a huge step toward building the electric car charging infrastructure that California needs to meet the states environmental goals. The deal was glowingly positioned by the Governors office as a $120 million settlement paid by NRG, in return for which California will get an EV charging network. However and not all are happy with the deal and are making their concerns heard. NRG has answered most of the concerns and is reaching out to advocacy groups to satisfy the red flags.

The deal is worth $120 million, and settles the lawsuit filed by California against an NRG subsidiary that was one of the companies involved in illegal manipulation of California's energy markets a bit over 10 years ago. The money is split into two parts, a $20 million payment to the California Public Utilities Commission (CPUC) and $100 million that's going to build an electric car charging network over the next four years.

In our prior coverage we noted that while California describes this as a "settlement", NRG describes it as an "investment", and NRG will end up with a large electric car charging network business in California as a result. That fact has the potential to be controversial, for example a San Jose Mercury News article quoted Marin County Supervisor Steve Kinsey, co-chairman of the EV Strategic Council as saying "We feel like this rewards a bad actor in the energy field with another opportunity to dominate the market." What has the electric car advocates stirred up are concerns and uncertainty over how eVgo will operate the network.

Unfortunately, nobody but NRG and the CPUC have yet seen the actual agreement. The agreement is still being negotiated between California and NRG, and the first opportunity we'll have to inspect the terms is when the deal is presented to the Federal Energy Regulatory Commission (FERC) for approval.

NRG is saying all the right things about the terms of the deal, for example that it will give open access to the charging network, and that the deal will not undermine the existing charging networks (Blink and ChargePoint) already operating in California. However, as Jay Friedland of Plug In America said, "the devil is in the details".

Generally the concern is in the membership model eVgo uses currently, compared to the way owners of gasoline cars refill the gas tank. When a gas car runs low on gasoline, the car driver can pull into any gasoline station, pay some money, and refill the gas tank. It can even be a totally anonymous cash transaction. No membership clubs are required, though one can get credit cards that pay rewards points for buying gasoline.

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Comments

The $100 m "investment" is a transfer of a liability to the California ratepayers to a major protected control position, an investment for NRG which will thwart competition for over 5 years. If all companies could convert debt to new businesses lit would be kaos. Competitors investments have to come from their own equity, not from a fractional settlement of a $940 m claim for price fixing with the likes of Enron in the California energy crisis. And now tthese same bad actors are ceded a major protected investment position in an electricity providing sector. The CPUC is relying on this group to use "their best business judgement" in deploying, operating ang owning the "investment". Wow. No public insight, no public hearing, no industry or ratepayers debate, just awarding ratepayers fund to An already proven bad actor in the California energy world. Deja vu? The conclusion of this article is half baked. It is a monopoly play using ratepayers money now confiscated as an NRG asset. The 10,000 make ready residential and office site require a 3-5 year subscription, under the EVGo model ranging between $49 - $89 per month. None of the other providers require such fees to use the equipment. No other EVSE can use the make ready sites for 18 months of install. Finally, the reporter, David Herron, obviously spoke with NRG at length but failed to contact any of the competitors, yet refer to them as sour grapes. Note: NRG has less than 20 stations only in Texas. Ecotality and Coulomb, both California based companies have over 6000 installations nationwide.

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