May 27, 2020 Ms. Lisa Felice Executive Secretary Michigan Public Service Commission 7109 West Saginaw Highway Lansing, Michigan 48917 Re: In the matter of the Application of DTE Electric Company for authority

to increase its rates, amend its rate schedules and rules governing the distribution and supply of electric energy, and for miscellaneous accounting authority.

MPSC Case No. U-20162 Dear Ms. Felice: Attached for electronic filing in the above-captioned matter is DTE Electric Company’s May 2020 Electric Vehicle-Charging Forward Annual Status Report. Very truly yours,

Kelly M. Martorano

KMM/erb

Kelly M. Martorano (313) 235-3813 kelly.martorano@dteenergy.com

DTE Electric Company One Energy Plaza, 1635 WCB Detroit, MI 48226-1279

P a g e | 1

CHARGING

FORWARD

Annual Status Report

May 2020

P a g e | 2

TABLE OF CONTENTS

Executive Summary ................................................................................................. 4

Annual Status Report Purpose................................................................................. 5

Electric Vehicle Market Update

Industry Updates ............................................................................................. 5

Michigan Trends ............................................................................................... 6

Charging Forward Overview

Program Overview & Objectives ......................................................................... 6

Stakeholder Engagement .................................................................................. 7

Network Provider Qualification ........................................................................... 7

Estimated Deployment & Budget ........................................................................ 8

Customer Education and Outreach

Overview & Objectives ...................................................................................... 9

Outreach Tactics .............................................................................................. 9

Equitable Access ............................................................................................ 11

Dealership Engagement .................................................................................. 12

Evaluation & Modifications ............................................................................... 12

Residential Smart Charger Support

Overview & Objectives .................................................................................... 14

Evaluation & Modifications ............................................................................... 15

Charging Infrastructure Enablement – Light Duty Vehicles

Overview & Objectives .................................................................................... 18

Evaluation & Modifications ............................................................................... 19

Charging Infrastructure Enablement – Fleets

Overview & Objectives .................................................................................... 24

Evaluation & Modifications ............................................................................... 24

Additional Program Components

EV-Grid Impact Study Summary ...................................................................... 25

EV-Ready Builder Rebate Summary .................................................................. 26

Bring Your Own Charger Pilot Overview ............................................................. 26

Key Program Learnings

Charging Profiles & Utilization .......................................................................... 27

Cost-Benefit Analysis ...................................................................................... 30

Appendix

Other EV Pilot Updates .................................................................................... 31

Stakeholder Discussion Participants .................................................................. 32

P a g e | 3

LIST OF TABLES AND FIGURES

Table 1: Charging Infrastructure Deployment Estimate .......................................... 8

Table 2: Charging Infrastructure Spend Estimate.................................................... 8

Table 3: Key Customer Education & Outreach Goals by Segment ............................ 9

Table 4: Customer Education & Outreach Channel & Tactic Overview ..................... 9

Figure 1: DTE Residential EV Website Landing Page .............................................. 10

Figure 2: 8-Step Process for Charging Forward Businesses ................................... 10

Figure 3: Virtual EV Showroom Tool ...................................................................... 11

Figure 4: Awareness of DTE’s Lower Night and Weekend Charging Rates ............. 13

Figure 5: Updated Graphic for the EV TOU Rate ..................................................... 14

Table 5: EV Models for Charging Forward Residential Participants ........................ 15

Table 6: Charger Models for Approved & Under Review Residential Participants .. 16

Figure 6: Map of Approved Charging Forward Residential Rebates ....................... 17

Figure 7: Charging Forward Rebated Make-Ready Model ...................................... 18

Table 7: Commercial Charging Forward Application Statuses ................................ 19

Table 8: Charger Models for Approved & Under Review Site Hosts ........................ 20

Table 9: Approved Charging Forward Applications by Vertical .............................. 21

Figure 8: Map of Approved Charging Forward Level 2 Sites ................................... 21

Figure 9: Map of DCFC Sites in DTE Territory ......................................................... 22

Table 10: Average Commercial Charger Installation Costs .................................... 22

Table 11: Site Host Application Runtimes .............................................................. 23

Table 12: Electric Bus Pilot Summary .................................................................... 24

Figure 10: Total Charging Sessions by Month, Oct 2019 – Apr 2020 ...................... 28

Figure 11: Residential Station Usage, Oct 2019 – Apr 2020 .................................. 28

Figure 12: Length of Commercial Charging Sessions, Oct 2019 – Apr 2020 ........... 29

Figure 13: Commercial Session Charge versus Idle Time, Oct 2019 – Apr 2020 .... 29

Table 13: Commercial Charging Session Characteristics........................................ 30

Table 14: Overview of NPV Gross Margin Calculation for Lifetime of EV ................ 30

P a g e | 4

EXECUTIVE SUMMARY

Forecasts for electric vehicle (EV) adoption in the long-term remain relatively unchanged,

although 2019 EV sales in the United States (US) dropped 9% compared to 2018. Near-term

challenges for EV adoption include the expiration of federal tax credits, EV model availability

in popular vehicle segments, and COVID-19 economic impacts. However, battery prices

continue to decline, making EVs more affordable and advancing the launch of more than 200

EVs in the next 10 years.

Charging Forward’s primary goals include maximizing program participation at a minimum

cost, aggressively testing new technologies to ensure that new load associated with EV

charging maximizes net benefits to all utility customers, and ensuring investments in make-

ready infrastructure reduce barriers to adoption while minimizing distribution system

investments. Charging Forward is making progress toward achieving all goals.

First, Charging Forward is maximizing participation at a minimum cost by deploying a make-

ready model (requiring site host investment), leveraging other sources of available funding,

and launching the Bring Your Own Charger pilot as an alternative to the residential rebate

component. Second, DTE Electric (DTE or the Company) is aggressively testing new

technologies to efficiently integrate the load with the grid through its battery-powered fast

charging, demand response, and residential off-peak charging pilots. Finally, the Charging

Forward team is ensuring investments in make-ready infrastructure both reduce barriers to

adoption through approval criteria (including future-proofing) and minimize distribution

system investments through an Engineering Initial Estimate process.

Charging Forward and its three primary components were approved on May 2, 2019. The

three original components included Customer Education & Outreach, Residential Smart

Charger Support, and Charging Infrastructure Enablement for a total of $13.1 million. In

addition, other EV pilots initiated in 2018 were rolled under the Charging Forward umbrella.

DTE meets bi-annually with stakeholders and based on feedback, three additional program

components have been folded into Charging Forward activities: an EV-Grid Impact Study, an

EV-Ready Builder Rebate pilot, and a residential off-peak charging pilot (Bring Your Own

Charger). The overall Charging Forward program now totals $14.2 million.

As of April 30, 2020, Charging Forward has successfully executed its Customer Education &

Outreach marketing plan to-date and approved rebates for 163 residential chargers, 138 Level

2 ports, and 34 fast chargers, translating to a corresponding program spend of approximately

$1.4 million to-date. The purpose of this report is to provide a detailed update on Charging

Forward’s primary components, additional program components, and pilots as well as key

program learnings regarding charging behavior and an updated cost-benefit analysis. Where

applicable, it will lay out program design modifications and proposed changes, like an

expanded Charging Forward eFleets program in future regulatory filings.

Impacts from COVID-19 to the overall economy, the EV market, and Charging Forward are

still fluid and not fully understood. The Charging Forward team expects sales in the near-term

to be an even bigger challenge than already described due to economic hardship, delayed EV

P a g e | 5

launches, and supply chain challenges. Lower EV sales have negatively impacted Charging

Forward’s residential rebate component, and economic uncertainty has caused some already-

approved site hosts to pause fast charging installations. The Charging Forward team will

continue to push forward where possible, remain actively engaged with stakeholders, and

adjust the program components as necessary to adapt to the quickly evolving EV market.

ANNUAL STATUS REPORT PURPOSE

As stated in the Order from proceeding U-20561, “The Administrative Law Judge agreed with

the Staff and recommended that the Commission require the company to file a status report,

prior to the implementation of Charging Forward, so that all interested persons and the

Commission are aware of the scope and nature of the program, in addition to the agreed upon

annual reports” (p. 111). DTE filed the Pre-Implementation Status Report on May 28, 2019

to summarize the decision from the Order and review its go-to-market strategy for the overall

Charging Forward program and each of its components. The purpose of this first Annual Status

Report is to provide a detailed update on Charging Forward’s primary components, additional

program components, and other EV pilots. As agreed in proceeding U-20162, DTE will provide

key program learnings regarding charging behavior and an updated cost-benefit analysis with

each of its annual reports. Where applicable, DTE will also lay out program design

modifications and proposed changes, like an expanded Charging Forward eFleets program in

future regulatory filings.

ELECTRIC VEHICLE MARKET UPDATE

Industry Updates

EV sales in the US in 2019 dropped 9% compared to 2018, which was a steeper decline than

the overall passenger vehicle sales drop of 2%. The decline in EV sales was highlighted by a

year-over-year decrease in Q4 of 26%, with 2018 having the highest quarter of EV sales in

history.1

One major factor that led to the decrease in EV sales was the expiration of federal tax credits

for top selling automakers. EVs do not yet have upfront price parity with similar internal

combustion engine (ICE) vehicles, so federal tax credits remain an important policy to help

drive EV Sales in the near-term. Both Tesla and General Motors (GM), the two highest selling

EV automakers, experienced a sales decline after their tax credits expired in Q4 2018 and Q1

2019, respectively. There is also a disconnect in supply and demand for the types of EVs that

are currently available. Trucks, Sport Utility Vehicles (SUVs), and Crossover Utility Vehicles

(CUVs) make up over 60% of new vehicle sales but less than 20% of available EV models.

Additionally, of the available CUV and SUV models, most are at a price point that competes

with “luxury” ICE vehicles, which shrinks the potential market even further.2

These factors will remain challenges in 2020, with the potential exceptions of the Tesla Model

Y and Ford Mustang Mach-E driving more interest in the SUV and CUV segments. However,

1 Atlas Public Policy 2 Bloomberg New Energy Finance (BNEF) Long-Term Electric Vehicle Outlook

P a g e | 6

impacts from COVID-19 are not yet fully understood and could have a large, near-term

impact, though not disproportionately on EVs. The good news is the US EV market is poised

to make significant jumps over the next five years. First, in relation to the EV premium price

barrier, experts forecast smaller EVs will achieve upfront price parity with similar ICE vehicles

by 2023, significantly improving the economics – especially once annual fuel and maintenance

savings are taken into account.3 Larger vehicles will follow suit in the mid-2020s. Second, in

relation to matching supply to consumer preferences, the market is expecting an influx of

larger EV models. Based on automaker announcements, there are over 200 EV launches

expected in the next 10 years, a 600% increase in available models. With these factors in

mind and despite near-term challenges, the industry remains optimistic about overall EV

adoption in the long-term.4

Michigan Trends

EV Sales in Michigan saw an even larger drop than the overall US market, coming in 27%

lower in 2019 (1,878) compared to 2018 (2,571). Through the first three quarters of 2019,

sales were down only 5%, but Q4 saw a decline of 66%, driven primarily by Tesla sales in Q4

2018 spiking in order for customers to take advantage of the aforementioned expiring tax

credit. As of the end of February 2020, Michigan has ~19,500 EVs in the state, with ~13,600

(70%) of them in DTE territory.5

The next few years will continue to be challenging for EV sales in Michigan for the same

reasons as the overall US market described above, but the long-term forecast for EV sales

remains relatively unchanged. DTE is projecting that EVs will be 3%-4% of vehicles on the

road and 8%-9% of new purchases in Michigan by 2030. That adoption curve would increase

EVs in Michigan from ~20,000 on the road today to ~300,000 in 2030.

CHARGING FORWARD OVERVIEW

On May 2, 2019, the Michigan Public Service Commission (MPSC) approved the $13.1 million

Charging Forward program proposed by DTE in Case Number U-20162 with some

modifications, guidance, and recommendations.

Program Overview & Objectives

The Charging Forward program components approved by the MPSC include Customer

Education and Outreach, Residential Smart Charger Support, and Charging Infrastructure

Enablement.

The Charging Forward program rolled the pilots DTE initiated in 2018 under its umbrella as

recommended by MPSC Staff. For a summary status of the pilots, please see the Other EV

Pilot Updates section in the Appendix. Based on feedback from stakeholders since approval,

additional program components have also been folded into Charging Forward activities,

3 Even with low gasoline prices due to COVID-19 impacts, the electric e-gallon equivalent is still cheaper at $1.44 compared to $2.04/gallon for Michigan as of March 2020 (Alternative Fuels Data Center) 4 BNEF 5 IHS Markit

P a g e | 7

including an EV-Grid Impact Study, an EV-Ready Builder Rebate pilot, and a residential off-

peak charging pilot (Bring Your Own Charger). After including the other EV pilots and

additional program components (totaling $1.0 million), the overall Charging Forward program

now totals $14.2 million.6

As part of the Order, the Commission adopted the following three program objectives:

1. Maximize program participation at minimum cost;

2. Aggressively test new and novel practices and technologies to ensure that new load

associated with EV charging maximizes net benefits to all ratepayers; and

3. Ensure that investments in make-ready infrastructure serve double duty by directly

addressing core barriers (such as range anxiety), and by enabling the Company to

learn reasonable and practicable ways to actively manage charging times and

locations, to minimize required investment in new distribution infrastructure, and to

obviate adverse grid impacts related to uncontrolled charging.

DTE believes its achieving each of these objectives through the strategic implementation of

Charging Forward’s primary components and additional program components as detailed in

the “Evaluation” sections below. Unless otherwise specified, all numbers throughout the

remainder of this report reflect Charging Forward’s status as of April 30, 2020.

Stakeholder Engagement

To continue to evolve with market dynamics and integrate lessons learned from other EV

programs, DTE has remained actively engaged with both national and regional entities. On a

national level, DTE is an active member of the Alliance for Transportation Electrification (ATE),

the Department of Energy (DOE) US DRIVE7 program, and the Edison Electric Institute (EEI)

Electric Transportation Task Force. Additionally, the Charging Forward team regularly

participates in EV working group sessions hosted by the American Council for an Energy-

Efficient Economy (ACEEE), Forth Mobility, and Smart Electric Power Alliance (SEPA). On a

regional level, DTE remains an active board member of Clean Fuels Michigan (CFM) and also

participates in both Michigan Energy Innovation Business Council (MEIBC) EV Convenings and

Midwest Transportation Electrification Collaborative (MTEC) meetings. Through its various

pilots, the Company also remains in close, frequent contact with both Ford and GM.

To ensure Charging Forward is meeting expectations and achieving its goals, DTE hosted its

second key stakeholder discussion on January 29, 2020 to discuss the progress of the program

and solicit feedback. Program participants from the stakeholder meeting are included in the

Appendix. DTE also sends high-level quarterly reports to brief the same group of key

stakeholders on EV sales in DTE territory, Charging Forward application updates, and key

achievements or announcements from the quarter.

Network Provider Qualification

DTE created a Request for Information (RFI) for EV Supply Equipment (EVSE) Network

Providers after benchmarking the RFIs from other utilities and leveraging ATE’s efforts to

6 $13.123 million + $1.048 million = $14.171 million 7 US DRIVE stands for Driving Research and Innovation for Vehicle efficiency and Energy sustainability

P a g e | 8

standardize the process across the nation. To date, the team has completed two RFIs in

February and October of 2019, sending it to a total of 30 different vendors. The team created

a scorecard to evaluate submissions based on network capabilities, data sharing processes,

hardware attributes, and the responding company’s value proposition (to both site hosts and

DTE). Using this scorecard and process, the five Network Providers that currently qualify for

the make-ready component of Charging Forward include ChargePoint, Enel X (formerly

eMotorWerks), EVConnect, Greenlots, and Volta. Two of the five also qualify for the residential

rebate component: ChargePoint and Enel X. The EV Team will refresh qualified hardware with

already-approved Network Providers bi-annually and qualify Network Providers through the

RFI process annually to ensure DTE is promoting a competitive marketplace environment and

including the latest charging technology.

Estimated Deployment & Budget

Based on 2019 actuals and the current COVID-19 environment, the team estimates the

charging infrastructure deployment schedule shown in Table 1.

Table 1: Charging Infrastructure Deployment Estimate

2019 2020 2021 Total

Percent ~4% ~22% ~74% 100%

Residential Rebates 95 300-400 1,200-1,800 ~2,000

Level 2 Ports 24 250-350 600-700 ~1,000

DC Fast Chargers 2 15-20 30-60 ~65

Fleet Customers n/a 2 4 6

Using the midpoint of the above ranges and program spend to-date of ~$1.4 million, this

equates to spend by calendar year shown in Table 2.

Table 2: Charging Infrastructure Spend Estimate

(in thousands) 2019 2020 2021 Total

Percent 1% 30% 69% 100%

Customer Education & Outreach $382 $599 $757 $1,738

Residential Smart Charger Support $48 $170 $750 $968

Charging Infrastructure Enablement $100 $2,765 $6,203 $8,753

Other EV Pilots $62 $300 - $362

Additional Program Components $227 $194 $265 $686

Program Management $273 $529 $548 $1,350

Total $1,092 $4,556 $8,523 $14,171

The quantity of chargers and expenditure forecasts could change over time as DTE better

understands market uptake, refines its cost estimates, and/or potentially adjusts the program

parameters based on lessons learned and stakeholder feedback.

P a g e | 9

CUSTOMER EDUCATION & OUTREACH

Overview & Objectives

The Customer Education and Outreach plan has two primary objectives:

1. Increase EV adoption by educating customers on the associated lifetime economic and

environmental benefits of EVs; and

2. Promote the other components of the Charging Forward program.

The marketing and communications efforts have been split between residential customers (EV

drivers) and business customers (site hosts). The key goals for these two segments are

described in Table 3.

Table 3: Key Customer Education & Outreach Goals by Segment

EV Drivers Site Hosts

• Inform on available rebates • Educate on available incentives

• Educate on EV benefits and

available EV models

• Make clear the benefits of providing public,

multi-unit dwelling, and workplace charging

• Increase in-person exposure and

access to EVs

• Raise awareness on fleet electrification

opportunities and benefits

• Improve the dealership

experience

• Educate on the various pricing strategies and

future-proofing opportunities

Outreach Tactics

Implementation of the Charging Forward Education & Outreach marketing plan has created

outreach to more than 4.8 million customers to-date. DTE has executed 40 tactics across 10

channels as shown in Table 4.

Table 4: Customer Education & Outreach Channel and Tactic Overview

Channel EV Driver Tactics Site Host Tactics

Media Events Charging Forward & ChargeD launches

Direct Mail 2 postcards 1 postcard

Email 11 emails 9 emails

Messaging on Bills 2 bills

Press Releases 2 Charging Forward & 1 ChargeD

Print Materials Handouts, brochures, dealership collateral, & magazine ads

Ride & Drives 1 event & 1 sponsorship

Social Media 7 posts 4 posts

Website Updates 6 improvement updates

DTE Major Account

Services (MAS)

Customer Meetings

106 site host leads

P a g e | 10

As outlined in Table 4, the team has refreshed the DTE EV website six times since launch. The

residential website is focused on both raising awareness of EV benefits to potential drivers

and providing resources to current drivers. The landing page for the residential website clearly

lays out the menu of resources as shown in Figure 1.

Figure 1: DTE Residential EV Website Landing Page

The business website is focused on educating entities on the benefits of installing EV charging

and then facilitating the process to do so. For example, Figure 2 highlights an easy-to-follow

8-step process for customers interested in participating in the Charging Forward program.

Figure 2: 8-Step Process for Charging Forward Businesses

P a g e | 11

The most recent update in April 2020 included the addition of a virtual EV Showroom tool as

shown in Figure 3 below. The EV Showroom is an interactive and continually-refreshed

educational tool that not only enables customers to discover and compare available EV

models, but also highlights the operational savings of switching to an EV and any incentives

that may be available to them. In less than one month, 1,350 users have already visited the

EV Showroom.

Figure 3: Virtual EV Showroom Tool

Charging Forward has also launched EV Connections, an initiative to create a sense of

community centered around EVs. All customers are welcome to join, with more than 160

doing so in less than one week. The goal is to engage these members with in-person events

in the future once COVID-19 health risks have subsided.

Equitable Access

Charging Forward has provided equitable access to EV Education & Outreach by utilizing

channels available to all customers, such as DTE bill messages, postcards, radio

advertisements, and in-person events. The team is also engaged with EV Noire, an award-

winning consulting group working at the intersection of transportation and energy equity. The

team will work with EV Noire to determine how it can be more intentional in its effort to reach

diverse communities, including potential ride & drive events (both digital and in-person) and

student STEM8 programs leveraging the electric school bus pilot.

8 Science, technology, engineering, and mathematics

P a g e | 12

DTE strives to further enable equitable access of EVs by exploring partnerships to electrify

ride-hailing and ride-sharing vehicles in Southeast Michigan. Evidence suggests that over 50%

of transportation network company (TNC) rides start or end in low-income areas.9

Additionally, one electric TNC vehicle could create over 5,000 EV experiences per year,

drastically increasing exposure to EVs for residents and visitors alike.10 The Company believes

this opportunity would be the best way to expose low-to-moderate income customers to EVs

at this stage in the market, since the availability of used, affordable EVs is limited.

Finally, as part of a settlement with the Environmental Protection Agency (EPA), DTE will be

replacing old mass transit and school buses in communities downriver with all-new electric

buses to reduce the public’s exposure to harmful particulate matter in those areas. Although

this settlement is unrelated to Charging Forward, the team will leverage the opportunity to

learn from the bus replacement project for future endeavors.

Dealership Engagement

DTE recognizes that there are several pain points for interested EV drivers that need to be

addressed at the dealership level. For example, DTE conducted an undercover shopping trial

in 2017 and found that few dealerships stock or sell EVs. Even if they did stock them,

shoppers were often redirected to a gasoline alternative when asking specifically about EVs.

The team believes the introduction of the virtual EV Showroom tool described above will

help address these types of educational issues going forward.

However, the team also engaged with dealerships directly to try to address the issues. From

a bottom-up perspective, the Charging Forward team visited over 30 dealerships of 10

different automakers in 2019 across DTE territory based on EV inventory availability. The

team educated salespeople on Charging Forward incentives, electric pricing options, and DTE

EV website resources. The team also provided leave-behind materials for both the sales staff

and potential EV buyers.

From a top-down perspective, DTE and Consumers Energy presented an overview of the EV

market and available program incentives to ~120 participating dealership personnel at the

Michigan Automobile Dealers Association (MADA) annual conference on December 4, 2019 in

East Lansing. Additionally, the Charging Forward team hosted a Lunch and Learn at the Detroit

Auto Dealers Association (DADA) to ~10 dealerships on December 12, 2019 in Troy. The team

continues to share any available EV dealership training webinars with both organizations.

Evaluation & Modifications

DTE values customer feedback, and the Charging Forward team is using surveys to both

gauge program effectiveness and integrate program improvements based on customer

feedback in a quick and efficient manner.

Tracking Survey

Charging Forward is conducting a tracking survey to measure customer awareness of EVs by

9 https://www.lyftimpact.com/stats/cities/detroit 10 Assuming 80 rides per week and 1.25 passengers per ride

P a g e | 13

sending the same question set to randomly selected customers who manage their utility bill

to receive 450-500 responses on an annual basis. Small, but consistent and positive

changes in perceptions and attitudes about EVs were seen among both current EV and non-

EV owners in the results from November 2019. For example, 2019 likelihood to purchase an

EV among DTE customers went up 6% from 2018. Customers are also becoming more

aware of DTE’s EV Education and Outreach efforts with a 6% and 4% awareness increase in

customers who own an EV do not yet own an EV, respectively.

One noteworthy achievement documented in the latest tracking survey is efforts to ensure

EV owners are aware of time-of-use (TOU) electric rates have proven successful as shown in

Figure 4. All EV owners surveyed were aware of the available TOU rates. Additionally, there

was a 50% increase in awareness of lower TOU rates for EV charging among non-EV owners.

Figure 4: Awareness of DTE’s Lower Night and Weekend Charging Rates

Charging Forward Participation Survey

DTE sends all participating residential and commercial customers a survey after rebate checks

have been processed to get their feedback on both the process and program. The Charging

Forward team has received feedback from 74 participants to-date. When asked if and why

they appreciated Charging Forward, residential customers overwhelming stated they

appreciated it. Some verbatim examples of what they specifically appreciated include:

• “The money covered the cost of purchasing a level 2 charger, which is the most

difficult aspect of owning an electric vehicle.”

• “The program made the decision to install a charger at home an easy one.”

• [Charging Forward provides…] “Incentive for improving convenience as an EV

owner. LOVE level 2 charging at home!”

• “$500 rebate and the cheaper off-peak rate”

Residential customers also feel EVs are beneficial to society as a whole, and Charging Forward

will encourage others to adopt EVs based on the following verbatims:

• “…the rebate is an incentive for more folks to consider the EV option.”

• “Helps get people involved in the EV market.”

• “It helps encourage people to consider greener technologies.”

• “The overall benefit to society of encouraging EV charger installation being

advocated by DTE.”

P a g e | 14

The Charging Forward team reviews all survey responses for potential areas of improvement

and acts quickly on consistent pain points or valuable recommendations when possible. For

example, based on feedback from a few residential customers, the team modified the EV

Electric Pricing webpage to simplify the difference between the available TOU rates as shown

in Figure 5.

Figure 5: Updated Graphic for the EV TOU Rate

Modifications & Budget Adherence

DTE originally proposed $1.6 million for Customer Education & Outreach but has since added

an additional ~$140,000 to this component based on overwhelming support from

stakeholders in the January 2020 meeting to pursue a potential TNC electrification opportunity

like described above. The team accommodated the increase by shifting funds from the

Residential Smart Charger Support component. To-date, Education & Outreach spend is within

budget at $382,000.

RESIDENTIAL SMART CHARGER SUPPORT

Overview & Objectives

To ensure the benefits of transportation electrification accrue to all customers, DTE’s primary

objective of the Residential Smart Charger Support component is to shift EV load to off-peak

hours through enrollment in the Company’s TOU rates. For the Residential Smart Charger

Support component, DTE provides a rebate of $500 to residential customers who purchase or

lease an EV, install a qualified Level 2 charger, enroll in a year-round TOU rate, and commit

to enroll in future demand response (DR) pilots.11

The full eligibility requirements and terms & conditions to receive the rebate are detailed in

the Residential Smart Charger Support Agreement. All residential rebate applications and

documentation are managed through the residential PowerClerk website.

11 Future DR programs will always provide options to customers to override the signals if required/desired to do so

P a g e | 15

Prior to program launch, DTE agreed to two recommended modifications to the Residential

Smart Charger Support component and has since implemented them as follows:

• Closed the EV Monthly Flat Fee option from Rate Schedule D1.9 to new enrollment and

transitioned all customers previously enrolled on this rate to the EV TOU option; and

• Added the following language in Rate Schedule D1.9: “The Company is exploring

additional possible metering options to be offered at the Company’s discretion. This

includes but is not limited to, collecting data directly from charging stations and/or

utilizing technology beyond the general service meter to measure EV usage.”

More information about the Company’s pilot to incentivize off-peak EV charging without the

installation of a second meter can be found in the Bring Your Own Charger section below.

Evaluation & Modifications

Evaluation

Residential rebate applications are lower than estimated, but that can be expected with the

overall lower EV sales described above. DTE has received 195 applications and processed

rebates for 163 of them; the remaining 32 were either rejected (22) or are under review (10).

The EV make and model of approved and under review Charging Forward participants (173)

is outlined in Table 5.

Table 5: EV Models for Charging Forward Residential Participants

Make Model Quantity

Chevrolet Bolt 52

Tesla Model 3 36

Chevrolet Volt 19

BMW i3 8

Nissan Leaf 7

Audi Etron 6

Chrysler Pacifica Hybrid 6

Tesla Model X 6

Honda Clarity 4

Jaguar I-PACE 4

Ford Fusion Energi 3

KIA NIRO 3

Tesla Model S 3

FIAT 500e 2

Toyota Prius Prime 2

Volkswagen e-Golf 2

Various Various12 10

Total 173

12 One each of BMW 530e, Cadillac ELR, Fiat 550e, Ford Energi, Ford Focus, Hyundai Kona, Kia Soul, Mercedes B250e, Mitsubishi Outlander, and Volvo XC60T8

P a g e | 16

Considering the majority of plug-in hybrid EVs (PHEVs) likely charge their vehicle with a

standard wall outlet (due to a smaller electric range), and Tesla drivers are likely to use

proprietary Tesla chargers, the team is looking at participation in the residential component

from a non-Tesla all-battery EV (BEV) perspective. To that end, 44% of non-Tesla BEV

purchasers in DTE territory (128 of 290) have participated in the program.

Of the 163 participants in Charging Forward, over one-third purchased a used EV (55). Used

car sales made up 70% of total car sales in the US in 2018,13 so as more EVs become available

on the used vehicle market, it is more likely that people will purchase one. Additionally, as

more affordable EVs become available, more low-to-moderate income customers can

purchase an EV. There is only one low-income Charging Forward participant so far.

DTE has qualified four chargers for residential use with various amperage and power outputs.

Participants have selected the charging equipment that best meets their specific home and

EV needs as outlined in Table 6.

Table 6: Charger Models for Approved & Under Review Residential Participants

Make Model Amps Max kW Quantity

Enel X Juicebox Pro 40 40 10 95

Chargepoint CPH25 32 7.7 59

Chargepoint Home Flex 16-50 12 11

Enel X Juicebox Pro 32 32 7.7 8

Total 173

Since the primary objective of this program component is to shift EV load to off-peak hours,

enrollment in TOU rates is a requirement for the rebate. Approved and under review

participants have selected all three eligible TOU rates, but the Whole-Home TOU rate (77

participants, or 44%) and EV-Only TOU rate (69 participants, or 40%) are more popular than

the Dynamic Peak Pricing rate (27 participants, or 16%). In the application submission survey,

83% of applicants said the Charging Forward rebate “Somewhat” or “Very Much” influenced

their decision to sign up for a TOU rate, demonstrating that the program is successfully

shifting EV load off-peak. Details about the team’s approach to continue to shift EV load off-

peak for more EV drivers in DTE territory – regardless of type of EV or charger - can be found

in the Bring Your Own Charger section below.

From a logistical perspective, the residential rebate component is running extremely well. Of

195 applications received, the team has only rejected 22 (11%) due to qualifications. The

team reviews reasons for rejection (primarily an unqualified charger thus far) and implements

clarifying improvements in both the website and application process to ensure customers

understand the eligibility requirements and reduce risk of rejection. The team is also

processing the applications quickly; the average runtime for DTE to review the application

and confirm eligibility is only six days. The time for DTE to confirm the connectivity with the

Network Provider is seven days, making the total runtime for application processing only 13

days (compared to a target of 30 days).

13 DOE

P a g e | 17

DTE is tracking geographic diversity of residential rebate applications, though it is not a

criterion for approval. The team has approved applications across 66 cities and towns in DTE

territory and, not surprisingly, applications are higher where EV adoption is denser. The

spread of approved applications is outlined in Figure 6.

Figure 6: Map of Approved Charging Forward Residential Rebates

Modifications & Budget Adherence

Because uptake of the residential rebate component is lower than estimated, DTE has

removed the eligibility requirement for EVs to be purchased on or after January 1, 2019.

Additionally, the team modified the original proposed budget ($1.5 million) as follows:

• Shifted $140,000 to the Education & Outreach component as described above; and

• Shifted $390,000 to the fleet portion of Charging Infrastructure Enablement to support

the rapid uptake of electric bus pilots described below.

After shifting funds to other components, Residential Smart Charger Support is estimated at

$970,000, and spend is well within budget at $82,500 thus far.

P a g e | 18

CHARGING INFRASTRUCTURE ENABLEMENT – LIGHT DUTY VEHICLES

Overview & Objectives

To address the “range anxiety” barrier to EV adoption and improve customers’ confidence in

the ability to refuel, DTE is supporting the deployment of charging infrastructure through a

make-ready model as outlined in Figure 7.

Figure 7: Charging Forward Rebated Make-Ready Model

Prior to program launch, DTE agreed to three recommended modifications to the Charging

Infrastructure Enablement component and has since implemented them as follows:

• Allowed site hosts to set usage fees on a per-kilowatt-hour (kWh) basis;

• Added the following language to Rate Schedule D3: “The 1000 kW discretionary

demand restriction does not apply to service provided to Electric Vehicle Fast-Charging

Stations until June 1, 2024”; and

• Added the following language to Section C6.1: “Beginning in May 2019, the Company

will waive the contribution in aid of construction calculated pursuant to Section C6 for

the term of the Company’s Charging Forward program, in order to construct and

extend its facilities to serve new loads associated with three categories of electric

vehicle charging stations. These categories include: (1) DC Fast Charging stations, (2)

Level 2 Charging stations, and (3) Fleet Charging stations.”

Other recommendations from the Commission included:

• Keeping rebate amounts flexible;

• Future-proofing Direct Current Fast Charger (DCFC) sites where possible; and

• Educating site hosts on available rates and assist in determining reasonable and

market-based pricing options, while also providing the site hosts flexibility and

authority to set rates based on their individualized needs.

At program launch, the rebate amounts were $2,500 per port for Level 2 and $20,000 per

charger for DCFC. DTE also capped the rebates at 20 Level 2 ports per site and 100 Level 2

ports per company. To participate in Charging Forward, site hosts are required to:

• Share their charger utilization data with DTE;

P a g e | 19

• Commit to maintain the chargers in good working order for five years following the

installation date;

• Install a minimum of two Level 2 ports per site (if installing Level 2 stations); and

• Install a minimum of two DCFCs per site (if installing DCFCs).

The full eligibility requirements and terms & conditions to receive the rebate are detailed in

the Charging Infrastructure Enablement Agreement. All commercial applications and

documentation are managed through the commercial PowerClerk website.

Evaluation & Modifications

Evaluation

Charging Forward is behind deployment estimates for Level 2 ports but far exceeding original

estimates for DCFC chargers. The Level 2 portion of the program could quickly get back on

track if one or two large site hosts participate. For example, the Charging Forward team is in

discussions with two potential site hosts for as many as 190 potential Level 2 ports across

their campuses. The status of commercial customer applications is outlined in Table 7, and

additional details about the statuses are described below.

Table 7: Commercial Charging Forward Application Statuses

Type Received Approved Under

Review

On

Hold Withdrawn

Level 2 sites

(ports)

34

(152)

32

(138)

2

(14) - -

DCFC sites

(chargers)

34

(70)

16

(34)

1

(2)

7

(14)

10

(20)

Level 2 applications range from two to ten ports with an average of four ports per site. DCFC

applications range from two to four chargers with an average of two chargers per site.

Approved applications meet the eligibility requirements described above. DCFC sites undergo

an additional check of the following criteria prior to approval:

• Proximity to highway exit or urban center;

• Availability of surrounding amenities;

• Distance to existing (or known pipeline) of non-Tesla DCFCs along highways; and

• Impact on distribution circuit.

To maximize program participation and minimize required investment in new distribution

infrastructure – two primary objectives of the overall Charging Forward program – the

Charging Forward team has agreed an “initial estimate” process with the Distribution

Operations (DO) Engineering team to determine impact and risk to the circuit for anything

over 200 kW. Based on the recommendation of MPSC Staff and other key stakeholders, DTE

is “future-proofing” most sites by assuming the DCFC sites are 250-600 kW, even if they are

only planned for 100-125 kW currently. All but three of the DCFC applications have undergone

the initial estimate process after discussions with the site host. Any sites which were not

deemed low impact and low risk were placed On Hold.

P a g e | 20

On Hold applications undergo a more detailed cost estimate with the DO Engineering team,

and - to uphold the objectives of the program - Charging Forward will only cover $100,000

per site for the EV Service Connection. Anything above and beyond that cost will be the

responsibility of the customer. The team is still sorting through the cost details and customer

discussions of the seven On Hold applications to determine if those will move into the

Approved or Withdrawn buckets.

Withdrawn applications are rescinded by the site host for reasons outside of Charging

Forward’s control. Of the ten Withdrawn applications, five were from not qualifying for

matching Charge Up Michigan rebates (described in the next paragraph) and the remaining

five were due to site host budget concerns.

Charging Forward’s rebated make-ready model leverages other funding by design (since the

site host fund, owns, and operates the charging stations), but an important goal of the

Charging Forward program is to leverage all available funding sources. To that end, the first

DCFC Charging Forward installation site host received $29,192 in funding from the

Volkswagen (VW) settlement funds that Michigan Department of Environment, Great Lakes,

and Energy (EGLE) is managing (Charge Up Michigan). There is another potential $325,000

in funding currently going through the Charge Up Michigan evaluation process, and more will

be leveraged as other sites are approved by DTE. Additionally, the Charging Forward team

notified all approved site hosts that the federal tax credit of up to $30,000 was extended

through 2020 to encourage installation prior to year-end.

Charging Forward currently has 17 commercial Level 2 chargers qualified ranging from 7.2-

10 kW and eight DCFC chargers qualified ranging from 125-350 kW. Site hosts have selected

the charging equipment that best meets their needs as outlined in Table 8.

Table 8: Charger Models for Approved & Under Review Site Hosts

Network Manufacturer Model Amps Max kW Quantity

Enel X Enel X Juicebox Pro 32 32 7.7 49

ChargePoint ChargePoint CT4000 30 7.2 45

ChargePoint ChargePoint CPE250C 200 125 26

Enel X Enel X Juicebox Pro 40 40 10 18

Greenlots EVBox BusinessLine 32 7.4 16

EV Connect EVBox BusinessLine 32 7.4 12

EV Connect BTC Power HP L4 Modular 200 150 6

Greenlots Tritium Veefil-RT 100 5014 4

EV Connect BTC Power L2 30/40/70 7.2 4

EV Connect EVoCharge EVO-Innovate 32 7.7 4

Greenlots EVoCharge EVO-Intelligent 30 7.7 4

Total 188

DTE is tracking site host verticals of approved applications, though it is not a qualification

requirement. Approved applications by vertical are outlined in Table 9 below. As expected,

14 DCFC chargers below 125 kW are no longer qualified for the program (see “Modifications” section below)

P a g e | 21

the workplace and retail verticals are the most popular thus far, while uptake in multi-unit

dwellings (MUDs) is slower to start. Based on stakeholder feedback, if significant gaps still

exist in the MUD category by 2021, then the team will propose program and/or rebate

modifications in the bi-annual stakeholder meetings.

Table 9: Approved Charging Forward Applications by Vertical

Type Workplace Multi-Unit

Dwelling Retail Municipality

Other

Public

Level 2 sites

(ports)

16

(75)

2

(8)

12

(46)

2

(9) -

DCFC sites

(chargers) - -

14

(28) -

2

(6)

Even though most Level 2 ports are for workplaces, this is an important vertical for EV

charging deployment for two reasons. First, employees at workplaces where EV charging is

available are six times more likely to purchase an EV, helping to drive adoption.15 Second,

60% of residential respondents from the Charging Forward post-rebate survey said they do

not have access to charging at work today, indicating a large gap still exists.

DTE is also tracking geographic spread of Level 2 applications, though it is not a criterion for

approval. Oakland County has the most approved applications (18), followed by Wayne (7),

Washtenaw (4), Livingston (2), and Macomb (1). There are still no approved applications in

Monroe or Sanilac counties. The spread of approved Level 2 applications is shown in Figure 8.

Figure 8: Map of Approved Charging Forward Level 2 Sites

15 US DOE’s EV Everywhere Workplace Charging Challenge

P a g e | 22

DTE does review geographic spread as a criterion for DCFC site approval. The Charging

Forward team is pleased that there is at least one approved application across all seven

counties in DTE territory, since DCFC infrastructure is important for travel across the state.

Counties with more than one approved site host include Oakland (5), Wayne (4), and

Washtenaw (3). The spread of applications for DCFCs, as well as existing DCFC infrastructure,

is outlined in Figure 9.16

Figure 9: Map of DCFC Sites in DTE Territory

None of the sites installed so far required any EV Service Connection costs, since the site

hosts had enough capacity on their existing services. Because DTE is putting any circuit-

impacting applications through an On Hold process (described above), the team expects EV

Service Connection costs to continue to remain relatively low. Cost information for the

installed sites is outlined in Table 10.

Table 10: Average Commercial Charger Installation Costs

Type Sites

Installed

Average (Avg)

Ports per Site

Avg EV Service

Connection Cost

per Site

Avg EV Supply

Infrastructure Cost

per Site

Level 2 14 4 $0 $7,000

DCFC 1 2 $0 $53,000

16 Existing infrastructure includes any public, non-Tesla DCFC installed outside of the Charging Forward program

P a g e | 23

Since all of the installations thus far are on the site hosts’ existing services, no separately-

metered rates have been selected by the site hosts specific to the chargers; all of the site

hosts have added the chargers to their existing rates. The 14 Level 2 site hosts are on eight

different electric pricing plans, with the most common one being Rate Schedule D3 (General

Service Rate). The majority of Level 2 charging installed is currently free to EV drivers (84%),

but nine Level 2 ports do charge a fee with an average rate of $1.32/session (with an average

usage per session of 4.1 kWh). The one DCFC site installed is on Rate Schedule D11 (Primary

Supply Rate) and is available to EV drivers for $0.30 per kWh, which equates to an eGallon

price of approximately $2.50.17

From a logistical perspective, the application process is running smoothly for commercial sites

as well. For the installed sites, both Level 2 and DCFC applications have been processed within

target, which is 120 days for Level 2 and 270 days for DCFC as shown in Table 11. The vast

majority of the time in the process - 96% for Level 2 sites and 92% for the DCFC site – is

after approval and waiting for the customer to install. The team expects to see the total

runtimes increase as applications in the pipeline require EV Service Connections.

Table 11: Site Host Application Runtimes (in days)

Type Review to

Approval

Approval to

Install

Install to

Rebate Sent

Total

Runtime

Over / (Under)

Target

Level 2 5 97 11 113 (7)

DCFC 11 128 1 140 (130)

Modifications & Budget Adherence

Based on lessons learned from the first six months of implementation and feedback from the

January 2020 stakeholder meeting, DTE has made the following three changes to the light-

duty Charging Infrastructure Enablement component of the program:

• After refining site cost estimates (primarily lowering EV Service Connection estimates),

DTE shifted funds from Level 2 to DCFC installations. This will accommodate additional

DCFC deployments for which the market has demonstrated demand and that will

enable electrification of TNC and other high-mileage vehicles.

• Because there have not been any EV Service Connection costs associated with Level 2

installations so far, the team lowered the minimum required ports for a site from four

to two. Four was originally proposed to achieve economies of scale, but since that does

not appear to be an issue and site host leads have demonstrated interest in only two

ports, DTE lowered the minimum requirement to encourage more deployments.

• DTE has changed the structure of the DCFC rebate. Originally, DCFCs with 50+ kW

output would receive $20,000 per charger installed. With the early success of

applications for these chargers, DTE is shifting its focus to higher-powered charging to

prepare for the longer-range BEVs of the future. Going forward, DTE will require DCFCs

to have an output of 125+ kW for a rebate of $50,000 per charger.18 There are a few

cases where DTE will still accept 50 kW chargers at the team’s discretion, such as MUD

applications and where geographic DCFC gaps exist in its territory.

17 Based on DOE methodology and assuming 33 mpg ICE equivalent and 4 miles/kWh 18 If two chargers can be tied together to output 125 kW to one car, the site will qualify for one $50,000 rebate

P a g e | 24

The original proposed light-duty component of Charging Infrastructure Enablement budget of

$6.6 million has remained approximately the same, and program spend to-date is well within

budget at $180,000.

CHARGING INFRASTRUCTURE ENABLEMENT – FLEETS

Overview & Objectives

To begin to test the fleet electrification market and based on strong stakeholder support, DTE

included a small fleet piloting element in the Charging Infrastructure Enablement component

of Charging Forward. The four initial qualifying categories of fleets include public transit,

school buses, delivery vehicles, and shared mobility services.

DTE will support fleet charging infrastructure through a make-ready model as described

above. However, since fleet charging solutions are unique to each operator, the team did not

qualify any specific equipment or define a fixed rebate amount. Instead, Charging Forward

will cover the EV Service Connection cost upfront and reimburse the electrician or fleet

operator for the EV Supply Infrastructure cost after installation.

Evaluation & Modifications

Evaluation

Within three months of program launch, Charging Forward fully subscribed the school bus and

public transit categories of its fleet element. DTE is partnering with two school districts to

deploy six electric school buses and three regional transit agencies to deploy eight mass

transit e-Buses as outlined in Table 12.

Table 12: Electric Bus Pilot Summary

Owner Number of

e-Buses

Type of

Bus

Type of

Charger

Quantity

of

Chargers

Estimated

Deployment

Ann Arbor 4 Thomas

Built Buses

60 kW

(4 ports) 1 Q4 2020

Roseville 2 Thomas

Built Buses

60 kW

(2 ports) 1 Q4 2020

BWT19 2 Proterra 450 kW

125 kW

1

2 Q1 2022

DDOT20 2 Proterra 500 kW

125 kW

1

2 Q1 2022

SMART21 4 Proterra 500 kW

125 kW

1

4 Q1 2022

For the school bus pilots, construction Requests for Proposals (RFPs) have been released. DTE

expects to select a vendor in Q2 and begin construction in Q3. For the mass transit pilots, the

three regional transit agencies (BWT, DDOT, and SMART) are in the process of finalizing their

19 Blue Water Area Transit 20 Detroit Department of Transportation 21 Suburban Mobility Authority for Regional Transportation

P a g e | 25

product specifications and city environmental requirements before issuing purchase orders

(POs). Meanwhile, DTE is working to site charger locations to minimize distribution

infrastructure investments. Once the POs are issued to Proterra, DTE will begin construction

for the charging infrastructure.

As already described above, an overall goal of the program is to leverage additional funding

sources, and the fleet component is another example of that. DTE has helped to secure $2.6

million in Federal Transit Administration (FTA) Low-No Grant funding for the DDOT and SMART

mass transit pilots and $1.5 million from Michigan’s Volkswagen Mitigation Settlement for the

Ann Arbor and Roseville school bus pilots.

Modifications & Budget Adherence:

After discussions with municipalities and feedback in the January 2020 stakeholder meeting,

DTE added governmental fleets as a fifth qualifying category to its fleet element. Charging

Forward originally estimated $1.6 million to support fleet charging infrastructure in its initial

proposal, but the team has shifted approximately $390,000 from both Residential Smart

Charger Support and Program Management to be able to accommodate the e-Bus pilots while

still supporting the remaining three fleet categories. Total fleet spend to-date is $11,000 for

a deposit on the installation of a charger at the maintenance facility for the school bus pilots.

Fleet electrification can require highly customized charging infrastructure solutions, which is

why the Charging Forward team has needed to shift funds from other areas of the program

to increase the budget for this element by 50% (from $1.6 to $2.4 million) in less than one

year to subscribe all five categories. To support the growing market and ensure benefits of

fleet electrification accrue to all customers, DTE will likely propose a more robust fleet

Charging Forward eFleets program in a future regulatory filing.

ADDITIONAL PROGRAM COMPONENTS

Three additional program components with which the Company has decided to move forward

based on stakeholder feedback include the EV-Grid Impact Study, the EV-Ready Builder

Rebate Pilot, and the Bring Your Own Charger Pilot.

EV-Grid Impact Study Summary

The goal of the EV-Grid Impact study was to identify power quality issues that emerge across

various EV penetration scenarios and at what point the grid experiences violations that would

require consequent action. While EV impacts are extremely dependent on the specific circuit

infrastructure and load allocation, the study concluded the following at a high level:

• Up to 20% of EV penetration can be accommodated on many circuits without major

upgrades, but clusters of early, high adoption will require localized investments.

• Because the timing of widespread EV adoption is uncertain, the suitability of grid

infrastructure, planning criteria, and standards should continue to be evaluated and

incorporated into DTE’s multi-year standards update cycle. For example, where

applicable, running three-phase wires to more premises will help reduce phase

imbalance and deploying larger distribution transformers will mitigate unnecessary,

expensive upgrade costs in the future.

P a g e | 26

• Continuing to pilot managed charging solutions and alternatives to infrastructure

upgrades like battery storage will be important to minimize distribution system

investment as EV penetration increases.

The study provided engineering and planning tools to perform circuit impact scenario analysis,

which can be extrapolated to similar circuit configurations and voltages to assess the potential

infrastructure needs required. The infrastructure investments to support EVs will be

incorporated in future distribution investment and maintenance plans. Total study spend is

$330,000, and the full summary report is filed under U-20162.

EV-Ready Builder Rebate Summary

The cost to retroactively install a 240-volt outlet to supply a Level 2 charger in a home is

approximately four times greater than installing the same wiring during the construction

phase. However, builders are unlikely to install a 240-volt outlet unless a customer specifically

requests and is willing to pay for it. After researching other utilities, including Georgia Power’s

current home builder rebate program, DTE is implementing an EV-Ready Builder Rebate Pilot

to “future-proof” new construction homes with the wiring for Level 2 chargers.

DTE has benchmarked with local builders and electricians to understand the costs associated

with installing the wiring for a 240-volt outlet during new single-family home (SFH)

construction. The cost of this wiring ranges from $200-$300 per home, so DTE has defined a

rebate of $250 to electricians that install the wiring and outlet in the garages of newly

constructed homes. With program requirements and rebate amounts set, DTE is moving

forward with execution, looking for builder and electrician partners.

DTE is also in the process of benchmarking with developers and electricians to create a similar

pilot in the MUD vertical. Defining the MUD pilot requirements and rebate amounts has been

delayed due to COVID-19 impacts, but the team still plans to begin implementation in 2020.

Total spend estimated for both SFH and MUD pilot implementation is $100,000.

Bring Your Own Charger Pilot Overview

One of the primary goals of Charging Forward is to ensure EV load is efficiently integrated

with the grid, which includes incentivizing off-peak charging. A barrier to the current EV-only

TOU rate (Rate Schedule D1.9) is the upfront cost to the customer to have a second meter

installed. Utilities across the nation are piloting ways to address this issue, including collecting

residential EV load data through a networked charger, a second meter inside the customer’s

residence, vehicle telematics, or algorithms performed on Advanced Metering Infrastructure

(AMI) data. DTE released an RFP in February 2020 to 19 companies across these varying

technical solutions and received eight responses. After evaluating the proposals based on

price, ease of solution, volume of potential EV drivers eligible, data security, and technical

capabilities, the team has decided to partner with Sagewell, leveraging their SageSight AMI

meter data analytics software and EVFinder algorithm.

This approach to incentivize off-peak charging, named the “Bring Your Own Charger” program

by Sagewell, requires no hardware, works with any charger and EV, and can be launched

immediately following contract negotiations. The pilot will enroll up to 1,000 participants (that

P a g e | 27

are currently not on a TOU rate) to charge their EV off-peak for an 18-month period.

Customers that charge their EVs off-peak (11pm – 9am) at least six times per month will

receive $8, to be paid out in quarterly instalments of up to $24. Estimated launch for the pilot

is Q3 2020, with total pilot spend estimated at approximately $250,000.

KEY PROGRAM LEARNINGS

In addition to the learnings provided in each section above, there are two areas of analysis

the company is undertaking: charging profiles & utilization and cost-benefit analysis.

Charging Profiles & Utilization

As a condition of qualifying as an approved vendor for Charging Forward, Network Providers

must share the charging data with the team on an anonymized basis. DTE has set up an

internal dashboard using Power BI to analyze the data. Chargepoint and EnelX are integrated

in the dashboard tool so far (representing 100% of residential and 86% of commercial

installed chargers). EV Connect will be integrated in Q3 2020 (representing the remaining

14% of installed commercial chargers), but DTE has included its data in this report through

access to an online web portal to the extent possible. The remaining two vendors (Greenlots

and Volta) will be integrated in the dashboard tool once they have chargers deployed and

online in the program.

Based on the deployment of 163 residential Level 2 chargers, 56 commercial Level 2 ports,

and 6 DCFCs22 deployed in Charging Forward, 220 Megawatt-hours (MWh) have been

consumed to-date. This is the equivalent of approximately 880,000 electric miles powered by

DTE, translating to 200 metric tons of carbon emissions eliminated and over 25,000 gallons

of gasoline avoided.23 For Chargepoint and Enel X chargers (99% of usage), 91% of

consumption fell outside the critical peak hours of 3pm-7pm. Overall, usage has been

primarily overnight, driven by residential charging. Energy consumption is much lower than

it would have been in the absence of COVID-19; once Michigan’s Stay at Home order took

effect on March 23, the team noticed a sharp decline in charging sessions for the remainder

of March and all of April as shown in Figure 10.

Prior to COVID-19 impacts dramatically lowering utilization, the team saw growth in sessions

of 207% between October and February, while the number of chargers only increased by

approximately 139% during that same timeframe. From February to April, there was a decline

in sessions of 62%, while the number of chargers increased 22%.

22 Includes four DCFCs from ChargeD pilot (see “Other EV Pilot Updates” section) 23 Assumes 4 miles/kWh (based on Chevrolet Bolt), 0.5 pounds of carbon abatement per mile (per the Alternative

Fuels Data Center), and 35 mpg (based on comparable Chevrolet Cruze Hatchback)

P a g e | 28

Figure 10: Total Charging Sessions by Month, Oct 2019 – Apr 2020

Residential charging makes up 91% of total participating charger consumption (or 201 MWh).

As expected with the TOU requirement, residential participants primarily charged off-peak as

shown in Figure 11. For all of the residential chargers, 93% of consumption fell outside the

critical peak hours of 3pm-7pm. The graph shows spikes around 7 pm (when off-peak pricing

starts for the Whole-Home TOU rate) and 11 pm (when off-peak pricing starts for both the

EV-Only TOU and Dynamic Peak Pricing rates).

Figure 11: Residential Station Usage, Oct 2019 – Apr 2020

For commercial charging, session times are fairly consistent for DCFCs but vary greatly for

Level 2 stations as shown in Figure 12. For DCFCs, 68% of sessions finished charging within

30 minutes as expected. For Level 2 stations, while the most common charging session was

30 minutes or less at 49%, the second most common session duration was over four hours

at 19%, highlighting the difference in use cases from topping off (e.g., at a retail location) to

filling up (e.g., at a workplace).

P a g e | 29

Figure 12: Length of Commercial Charging Sessions, Oct 2019 – Apr 202024

Since all DCFC charging has a fee, and most Level 2 charging is free, it’s not surprising that

EVs remain parked and idle at Level 2 chargers long after their charging session has ended

as shown in Figure 13. This also makes sense with free Level 2 workplace charging, where it

might only take one to two hours to charge the EV, but it will remain parked for eight to nine

hours without much incentive to move.

Figure 13: Commercial Session Charge versus Idle Time, Oct 2019 – Apr 2020

High level charging station characteristics for commercial Chargepoint and Enel X chargers

are outlined in Table 13. Even with a lower charging speed, average Level 2 charging time is

only 69 minutes with an average usage of 5.2 kWh per session (or about 21 miles of electric

range). This aligns with the average EV driver traveling approximately 40 miles per day. With

the higher charging speed, DCFC charging time is typically only 41 minutes with an average

peak demand of 51 kW and average usage per session of 18.5 kWh (or about 74 miles of

electric range).25

24 Based on ChargePoint data only (74% of commercial usage) 25 AAA; assuming 4 miles/kWh

P a g e | 30

Table 13: Commercial Charging Session Characteristics26

Type

Average

Charging

Time

(minutes)

Average

Peak

Demand

(kW)

Average

Usage per

Session

(kWh)

Average

Fee to

Driver

($)

Level 2 69 7.7 5.2 0.04

DCFC 41 51.0 18.5 5.50

Cost-Benefit Analysis

In its initial proposal, the Charging Forward team estimated net present value (NPV) of

$2,100-$2,800 in gross margin that each EV sale provides toward DTE system fixed costs

over its lifetime (assuming 10 years) as described in Company Witness Mr. Serna’s testimony

(pages 43-44) in filing U-20162. Based on market dynamics and charging behavior lessons

learned, the team has updated the NPV of lifetime gross margin to ~$2,100-$2,600 as

outlined in Table 14.

Table 14: Overview of NPV Gross Margin Calculation for Lifetime of EV

Description Value Key Assumptions Source

EV usage per

year (kWh) 3,575

• 0.3 kWh/mile for BEVs

• 0.35 kWh/mile for PHEVs

• 60% of EVs are BEVs

• 12,000 miles/year

• GTM Research

• GTM Research

• IHS Markit

• M-DOT

Weighted

Average

Revenue rate

($/kWh)

~0.13

~0.12

~0.17

• Offpeak Whole-Home TOU rate D1.2

• General service rate D3

• Residential service rate D1

• Current rates and

load profiles

Average supply

cost ($/kWh) ~0.03 • Base fuel + PSCR factor • DTE Regulatory

NPV Energy

Benefit ($/EV)

$2,100

-

$2,600

• Discount rate of 6.79%

• Low end – residential only

• High end – including commercial

• DTE Regulatory

Using this incremental NPV benefit range as a basis and total program spend of $14.2 million,

EV sales of approximately 5,500–6,600 cover the costs of the program. Assuming that’s

achieved by year-end 2021 and there are EV sales of ~6,000-7,000 in 2022, NPV affordability

benefits of approximately $13-$18 million over the life of the EV begin accruing to DTE’s

customers in 2022. Additional NPV affordability benefits will continue to accrue to DTE’s

customers as additional EVs are sold each year, increasing to as much as $28-$41 million by

2025 as EV adoption continues to grow.

Playing an active role in these early adoption years to ensure DTE is learning about EV

charging behaviour, piloting new technologies, and efficiently integrating charging

infrastructure with the distribution system is important to ensure the benefits of added EV

load accrue to all of DTE’s customers.

26 Calculated by totaling characteristic columns for every charger and dividing by total number of sessions

P a g e | 31

APPENDIX

Other EV Pilot Updates

After receiving support for proposed EV pilots during the February 2018 Technical Conference

hosted by MPSC Staff, DTE moved forward with pilot scope definition, partner identification,

and implementation. The Company provided an overview of the pilots in its Charging Forward

proposal, and in the regulatory proceeding, MPSC Staff recommended DTE include any 2018

pilot-related costs in the Charging Forward program following approval. The team began

including any pilot costs incurred after May 2nd, 2019 in rate cases and will continue to provide

updates on the status of each of the four pilots below.

Detroit Showcase (ChargeD)

ChargeD is part of a larger mobility initiative with the City of Detroit and other partners.27

DTE’s primary objectives for the downtown showcase pilot are to develop process guidelines

for future make-ready deployments, analyze station utilization and impacts on the grid during

peak times, and to leverage the showcase proximity to parks for enhanced EV education and

outreach opportunities. Blue Energy and Chargepoint were selected through an RFP process

together with the City of Detroit, and the first phase of installation – four DCFCs at Beacon

Park – launched in September 2019. The second phase of installation – two additional DCFCs

in downtown Detroit – is currently in development and expected to be deployed in 2021.

Additionally, PlanetM and the Downtown Detroit Partnership (DDP) are working with Next

Energy to develop EV education and outreach programming ideas that can leverage ChargeD.

A large mobility activation was planned for the North American International Auto Show in

June but will be rescheduled following the auto show cancelation due to COVID-19.

Battery-Powered DCFC Corridor Site

The goals of the Battery-Powered DCFC Corridor Site are to better understand the cost-benefit

of installing a battery versus upgrading the distribution system, the cycle time of recharging

the battery based on charger usage patterns, and the health of battery and potential

degradation based on Michigan weather and frequency of charge/discharge events. DTE

selected eCamion as the site host through an RFP process to install two DCFCs and a Level 2

charger powered by a 120-kW battery. The pilot launched in February 2020. DTE and eCamion

are exploring the potential for the battery to be a grid asset by testing bidirectional

interactions with the battery.

Demand Response (DR) Pilot

The goals of the DR pilot are to analyze the energy reduction (kWh), demand reduction (kW)

and effectiveness of DR events given differences in timing and participation incentives utilizing

car telematics. For Phase I of the pilot, DTE partnered with Electric Power Research Institute

(EPRI), Sumitomo, Ford, and GM. It concluded in August 2019 after calling 12 events with

approximately 165 Ford and GM employee EV drivers. Phase II of the pilot will expand beyond

automotive employees, increase to up to 1,000 participants, and may include additional

automakers. Other testing elements in Phase II may include testing overnight DR curtailments

27 Boston Consulting Group, PlanetM (Michigan Economic Development Corp’s mobility branch), General Motors Co.,

Lear Corp., Bedrock Detroit, Quicken Loans Community Investment Fund, New Economy Initiative.

P a g e | 32

and requesting EV drivers to start charging when there is excessive renewable energy on the

grid. Phase II should be completed by Q2 2021. The DR pilot (including spend) is managed

by DTE’s Energy Waste Reduction (EWR) team.

Delta Extreme Fast Charger Pilot

Delta Electronics and other pilot partners28 were the recipient of a DOE grant with the goal to

develop and test a 400-kW extreme fast charger (XFC). There are two phases to the pilot:

indoor and outdoor testing. Phase I is the independent design and development of the charger

at the Delta Electronics Livonia site and the vehicle at a GM site. Phase II, outdoor testing, is

in two parts. Part one will be at the Next Energy facility in Detroit where they will test both

the car and charger together with some limited roadway testing beginning in Q3 2020. Part

two will be done at the American Center for Mobility (ACM) facility in Ypsilanti, with more real-

world grid and roadway interactions, beginning in Q3 2021.

Stakeholder Discussion Participants

Organization Attendees

5 Lakes Energy Douglas Jester

Alliance for TE Phil Jones

Atlas Public Policy Nicole Lepre

CALSTART Maureen Marshall, Lily Paul

Chargepoint Newonda Nichols, Mike Waters

Clean Fuels Michigan Mike Alaimo

Daimler Trucks of North America Jonathan Yan

DTE Alex Brasil, Ben Burns, Robert Feldmann, Sean Gouda,

Angela Gust, Milena Marku, Kelsey Peterson, Brett Steudle

Ecology Center Charles Griffith

EVConnect Ahmed Mineissi, Bill Soule

General Motors Alex Keros

Greenlots Annie Gilleo

MI Dept of EGLE Robert Jackson, Debbie Swartz

MEIBC Cory Connolly

MPSC Al Freeman, Lauren Fromm, Karen Gould, Patrick Hudson,

Kevin Krause, Tremaine Phillips, Nick Revere, Joy Wang

NRDC Mark Nabong

Nissan Marcus English

Sierra Club Joe Halso

Volta Charging Karen Zelmar

28 General Motors, Virginia Tech, Next Energy, Michigan Energy Office, and City of Detroit.