Xcel Energy's electric-vehicle offensive in Minnesota includes spending up to $150 million on vehicle rebates and bolstering efforts to provide in-home and public charging systems.
The company's residential charging program recently won regulatory approval to move from pilot stage to a permanent offering, though its public electric-vehicle (EV) initiatives are moving slower than expected.
The vehicle-rebate proposal was disclosed in a recent filing with Minnesota Public Utilities Commission (PUC), which would have to approve any such plan.
Minneapolis-based Xcel, the state's biggest electricity provider, said its projections put 1.5 million electric vehicles on the road in its service areas by 2030 — making up about 20% of all automobiles and light trucks.
The company didn't have a breakdown by the eight states it serves. But a regulatory filing in June indicates that by 2030, Xcel forecasts 376,000 EVs in Minnesota in a "high-growth" scenario.
"If we can get 1.5 million EVs on the road in our service territories, customers will save $1 billion a year and we will significantly reduce carbon emission," said Xcel CEO Ben Fowke in an interview.
Electric-car fueling costs are the equivalent of $1 per gallon of gas on average, and 60 to 70 cents per gallon for Xcel's residential late-night charging programs.
But electric vehicles have a long way to go reach Xcel's forecasts. As of Feb. 1, there were only 12,959 EVs in Minnesota, 43% of which were plug-in hybrids, according to the Minnesota Department of Commerce.