CC Minutes - 02/16/10 Joint Meeting with EWEB

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Work Session February 16, 2010 Page 5 one thing to consider was what role would be appropriate for local government. Mr. Parker said there would be implications to the power industry since electric vehicles were shifting the energy burden from the fossil fuel sector to the electric sector. He also pointed out that installation of a number of charging stations in the downtown area, as an example, could overwhelm the system. In response to a question from Mr. Cassidy, Mr. Parker clarified that the capital investment for the batteries required for electric vehicles made a potential station to exchange batteries cost prohibitive. He noted that the batteries for the Nissan LEAF cost between $28,000 and $35,000. He said the current literature suggested that lithium ion technology would not improve quickly enough over the next decade or two to make a big difference. Ms. Ernst considered this to be a great opportunity for utilities. She declared that utilities should be as proactive as possible. She discussed the smart grid technology, which she surmised would mean that the cars could be plugged back into the grid when not in use and the power used. Mr. G. Brown asked what the range of the Nissan LEAF was. Ms. Parisi replied that it could go 100 miles per charge. In response to a follow-up question from Mr. G. Brown, Ms. Parisi stated that it would cost $1 or $2 to drive 80 miles in an electric vehicle and $16 to drive a gas-fueled vehicle the same distance. Mr. Farmer remarked that the challenge for the utility lay in that if electric cars became successful they would have to determine where the power would come from. He explained that the northwest was on the brink of running out of power but was facing a potential increase in demand from electric cars. He related that the Bonneville Power Administration (BPA) contracts for all utilities in the northwest were being renewed in 2011. He said basically the utilities had been allocated the amount of power they were receiving now and anything above that would have to be purchased on the open market, either by the BPA or by the individual utility. He pointed out that hydroelectric power, though cheap, was not likely to proliferate; it was unlikely that more dams would be built at this point. He said where they would get the power, should the utility be faced with a huge demand, and how much it would cost, were issues to consider. The challenge they faced lay in resource planning. Ms. Ortiz expressed concern that the revenue from the gas tax would fall and this meant there would be less money for streets. She pointed out that EWEB paid a Contribution in Lieu of Tax (CILT) and asked that they consider this drop in revenue when thinking about their budget. Ms. Parisi said this was an issue on the state level, because gas tax revenue had dropped statewide. President Brown surmised that the City would charge franchise fees for infrastructure installed on public rights-of-way. Mr. Parker responded that those were questions that would have to be sorted out. He said at this point it appeared that a number of different entities would jump into the market and it would likely be messy for perhaps the first ten years. Ms. Taylor expressed concern about people whose garages were no longer used to house cars and where they could charge their vehicles. Ms. Parisi replied that a charging station could be outside a house. She said the biggest constraint would be panel capacity, especially in older homes. President Brown passed out a sample of what could be a proposed joint resolution so that the council