Guest: Public utilities and private retailers should stay in their lane on EV stations

The modern American road trip was born in Oklahoma. Route 66, the brainchild of a Tulsa businessman, is where Americans first got their taste for the freedom of the open road, and its construction in the 1930s sparked a gas station building bonanza throughout the state.

The gas stations, convenience stores and truck stops that line our highways today are proud to carry on that entrepreneurial tradition. We have spent decades serving the drivers traveling in and across our state. We know where they go, what they want and how to meet their expectations in an ever-evolving market.

Just as those first gas station operators saw opportunity in selling gasoline and diesel to drivers, we want to serve the electric vehicle (EV) drivers of the future.

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Unfortunately, Oklahoma public policy is making that nearly impossible today.

Businesses need certainty when deciding where to invest for the future, and Oklahoma’s EV charging marketplace is filled with uncertainty right now. Current state law allows for the possibility of our state’s public utilities entering the EV charging marketplace and enjoying near monopolistic power.

With rules in place that pre-date the electric vehicle, private businesses will not invest the hundreds of thousands of dollars that it takes to offer EV charging because they have no idea if they will end up competing against the power company.

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To be clear, the power companies here in Oklahoma have not ventured into the EV charging marketplace. Oklahoma Gas and Electric Co., the Public Service Co. of Oklahoma and electric cooperatives throughout Oklahoma have been laser focused on keeping the state’s lights on. Our utilities have done a heroic job of meeting the state’s increasing demand for electricity, strengthening the grid and replacing aging infrastructure. We all rely on them, and they have not strayed from their core mission.

However, in other states, public utilities are drifting from their mandate, allured by the possibility of expanding their monopoly to the EV charging market. Just look at our neighbors: Utilities in New Mexico, Colorado and Arkansas have all, to varying degrees, raised rates on their customers in order to pay for utility-owned EV charging stations.

When the power company owns and operates EV charging stations, private retailers can’t compete. Utilities can sell EV charging below market rates because their capital costs are subsidized by ratepayers. The utilities also have significant influence over pricing policies that can prevent any third party from being able to profitably sell electricity for EV charging.

Our fuel retailers here in Oklahoma see what is happening in other states. They also know that current Oklahoma law allows for the possibility of the utilities here making similar moves to enter the EV charging market. This makes investors nervous, and they take their money elsewhere. No matter how dedicated our utilities are to their core mission, the fear of them entering this upstart marketplace is keeping private investment out.

This market needs stability and certainty, which is why I appreciate recent legislation filed in the Oklahoma Legislature by Sen. Chuck Hall and Rep. Kyle Hilbert that would address the current broken EV charging marketplace.

This legislation would officially prevent utilities from passing along the cost of power company-owned EV charging stations to their customers. It would require utilities to establish a rate for the sale of electricity to EV charging providers, allowing individual retailers to purchase the electricity and then resell it at a rate that is competitive and profitable.

This is common-sense legislation that would inspire confidence in the EV charging marketplace, and encourage retailers to continue partnering with our power companies, rather than viewing them as potential competitors with extremely deep pockets.

OG&E, the PSO and our electric cooperatives deliver electricity to homes and businesses all over the state, every day. Fuel retailers serve drivers, helping them travel with confidence and get back on the road, every day.

This legislation would ensure investors that both the public utilities and private retailers stick to what they do best, which is what we need for Oklahoma’s EV charging marketplace to grow.

Candace McGinnis is the executive director of the Oklahoma Petroleum Marketers & Convenience Store Association. 

This article originally appeared on Oklahoman: Legislation could inspire retailers to invest in EV charging stations