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California's settlement with NRG for electric car charging network headed to FERC

Today the CPUC and NRG released the finalized settlement of the decade-old legal battle over the 2000-1 California Energy Crisis, revealing details of the planned electric car charging station network to be built in California.

In March NRG and the State of California announced a deal that both settles a decade-long legal wrangle stemming from the 2000-1 energy crisis, and also makes a bold move to create a huge network of electric car charging stations in California. Today NRG followed up by releasing the actual settlement filed by the CPUC with the Federal Energy Regulatory Commission (FERC) for approval. The details of the proposed EV charging network we published earlier were based on a preliminary document provided by NRG, and today we have available the finalized agreement (published on the CPUC website).

The agreement stems from a period in California, during 2000 and 2001, where some energy companies abused a flawed deregulated electricity market in California, resulting in millions upon millions of dollars in excess electricity costs in California. Among those companies were certain subsidiaries of Dynegy, that were later bought by NRG, who then assumed legal responsibility. According to a statement by CPUC Commissioner Mark Ferron, "Dynegy together with NRG will have returned to the people of California more than $400 million in consideration" to atone for these acts. Of that amount, $300 million "will be paid in the form of cash to offset the electric bills of customers in California" and the remainder, more than $100 million, is the to-be-built charging station network infrastructure.

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Comments

Excellent summary! I like most of the deal, it is providing something that we EV drivers need but entities have been reluctant to provide due to uncertainty. EVO is being forced to take a risk and if the business model fails, the wiring will remain. So consumers win in that aspect. The current pricing plans EVGO has will work for me @ $89 covering my home electrical use as well as all of their network. Ecotality is a non-performing contractor and has earned no voice in the discussion.
Excellent summary! I like most of the deal, it is providing something that we EV drivers need but entities have been reluctant to provide due to uncertainty.  EVO is being forced to take a risk and if the business model fails, the wiring will remain.  So consumers win in that aspect. The current pricing plans EVGO has will work for me @ $89 covering my home electrical use as well as all of their network. Ecotality is a non-performing contractor even though they have the biggest advantage.
What a BAD deal for the EV community and residents of CA. This will create a scenario where two companies, NRG and Coulomb (who will supply the back-end technology to EVgo), will be given another gift from government to further control the market place. This is keeping costs to the consumer up because better, more cost competitive products and business models can't come to the market because subsidies and back-door deals are suppressing them with an uneven and unfair playing field. Once these two companies get control, it will be impossible for real competition to take hold and bring prices down. This will be a death blow to the long term outlook of the EV community. As a citizen of CA I am disgusted that the CPUC would take a $900M fraud claim against a company that ripped off CA citizens and lower the damages to $120m. And then allow the perpetrator of the accused fraud scheme to simply pay $100M of the penalty to itself. How many backdoor dinners and discussions and whatever else did it take to get this sweetheart deal done. I'm sure a lot of companies would pay $100m to ensure they lock up the California market for the next generation of vehicles if they new the CPUC and governors office where going to safeguard their investment.

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