California’s push to lead U.S. sales of electric cars may result in higher power rates for consumers in the state, as a growing number of rechargeable vehicles forces utilities to pay for grid upgrades.
The autos’ effect on electricity fees is being reviewed by California’s Public Utilities Commission this month as the most populous U.S. state will require Toyota Motor Corp., General Motors Co., Honda Motor Co., Ford Motor Co. and Nissan Motor Co. to sell more plug-in vehicles from late 2011.
Power companies including Southern California Edison, the state’s largest, have to install new transformers and meters to handle greater demand and prevent blackouts when autos are being charged at outlets. Utility rates will rise to cover the costs, said Travis Miller, a Morningstar Inc. analyst in Chicago.
via California electric-cars push may raise power costs – Finance and Commerce.
