Examination of Transit Agency Coordination with Electric Utilities (2024)

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CHAPTER 5 Findings and Further Research Needs The goal of this synthesis was to document the state of collaboration between transit agen- cies and electric utilities as transit agencies adopt battery electric buses. The research approach provides an overview of the state of electric utility programs and policies that can support transit bus electrification efforts, from planning support to capital funding or financing to operational support. The research then provides a high-level picture of how transit agencies are working with their utilities and what kinds of programs and policies are being offered to provide capital, operat- ing support, or planning support. Finally, the research delved into a select set of case examples of how a diverse cross-section of transit agencies and utilities are collaborating on a specific agency’s BEB rollout. This section provides a summary of the findings from this research and identifies possible areas for future research suggested by the findings. Findings An important overarching note is that every utility, like every transit agency, is its own entity that operates slightly differently than others. Practically speaking, this means that transit agen- cies and utilities may not be able to simply transfer a set of programs, practices, or policies to their own relationship. Importantly, each utility will differ according to its governance structure. There are important differences between what regulated utilities can do, and how quickly they can act, to support BEB deployments versus what a public power utility or a cooperative utility may do. Nevertheless, the following lists what this report identifies as the highlights, lessons learned, and findings from this research that other transit agencies, and electric utilities, may want to consider when deploying BEBs: • Both transit agencies and utilities are subject to an array of regulations at the federal, state, or local level that define and set parameters around the types of collaborative efforts they can undertake to facilitate BEB deployment. • It is vital for both entities to understand how their opposite partner operates and their regula- tory or governing environment in order to approach collaboration effectively. • Effective collaborations with an electric utility on BEB programs are most likely to happen when the utility has a clear commitment, at an executive level, to clean energy, renewables, and electrified transportation. This commitment is especially critical for the IOUs, as they face more regulatory restrictions to implementing programs and policies that support transit bus electrification. For public power and cooperative utilities, the commitment of the governing entity or the members to electrified transportation is key. 59 

60   Examination of Transit Agency Coordination with Electric Utilities • Public power and cooperative utilities will find it easier to put in place funding or financ- ing programs to help a transit agency, due to their governing structure. However, this will be highly dependent on the commitment of the utility governing board or council, or the membership. • For utilities, the benefits of actively engaging with the transit agency’s BEB program are find- ing new electrification markets like transit, helping the utility meet its carbon reduction goals with electrified transit, and helping it meet overall fleet emissions reduction goals. • Up-front planning support was the most commonly offered support from the utility. The util- ity can help the agency in design, engineering, power capacity, and load assessment as the agency is planning out its BEB infrastructure and facility needs. Because utility-side infra- structure upgrades are expensive, it is a benefit to the utility to help the agency optimize its BEB fleet’s electricity consumption. • While many transit agencies desire a special rate to lower their operating costs, securing a rate can be challenging and time-consuming, especially for an IOU. There are structural reasons for how rates are established that can make it challenging to provide special rates for any par- ticular category of customer; in addition, an IOU must proceed through a special docket filing that entails a lengthy review process. Co-ops and public power utilities can more readily offer special rates as they have a less regulated governance structure. • Following on the previous point, agencies working with an IOU can expect that it will take longer to implement any new programs to support BEB deployment since the IOU must receive approval from the PUC. • Utilities want evidence that the transit agency has a long-term commitment to transit bus electrification, such as a ZEB transition plan. Uncertainty around the agency’s future BEB bus procurements is a risk factor for the utility, which may need to make significant new expendi- tures in grid capacity for projected BEB deployments. • In programs where the utility provides infrastructure capital or operating funding support, a key component will typically be that the agency installs a separate meter for the BEB charging and provides the charging data to the utility. The utility sees a benefit in being able to under- stand what the likely loads will be from a growing BEB fleet and can also help the agency in managing demand to lower fueling costs. • Several of the case examples where there was an especially strong relationship were in situ- ations where the agency was a large customer of the utility. In these cases, the utility more readily prioritizes the needs of the agency than in a case where the agency is a fairly small commercial customer. • Many utilities—especially the IOUs—are large, complex entities. Identifying a central utility employee who acts as an ally and point-of-entry into the utility for the transit agency partner is an important factor in getting a BEB infrastructure project done. Indeed, having a central point of contact for the BEB collaboration at both the agency and the utility is one of the most often cited lessons from these case examples. It allows each partner to more easily navigate its partner organization to find the right person needed to help with specific issues. • Each utility may organize its transportation electrification efforts differently. Those that locate their transportation electrification team under a single umbrella will be easier to engage with effectively than those with less internal coordination. In those cases, the agency may have to be proactive in seeking out the right people to work with for different parts of the BEB transition. • Regular meetings organized by the central point of contact at the utility and the agency were cited by the case examples as an important tool to keep a BEB project moving forward. These meetings typically include others involved in planning and facility or fleet management. These meetings give each side an opportunity to share as much information as possible and to anticipate potential issues or challenges. This can help address these challenges and avoid delays. 

Findings and Further Research Needs   61 Future Research Needs Based on the research in this synthesis, the following are some areas of potential future research: • Further research into utility rate design and how it affects operating costs for BEB fleets • Research into real data on electricity consumption from BEB fleets as they are deployed • Examples of how to work through the utility PUC process • Managing the resiliency of BEB fleets is being explored in a current TCRP project • More research into on-site energy generation, power purchase agreements, and community microgrids • Better understanding of the potential of vehicle-to-grid integration • Where there is the potential to work with other agencies or fleets that are electrifying, such as school districts, to gain better leverage with the utility • Viability of the charging-as-a-service model for the transit industry. Would it alleviate the challenges of the agency in understanding how to work effectively with the electric utility?