
“Price is what you pay. Value is what you get.” – Warren Buffett
The price of a gallon of gas never differs much between gasoline retailers in my area. I’ve paid attention to gas prices lately as they have soared above $5.00 and then retreated a bit. Even though I don’t buy the stuff, a gallon of gasoline at the Exxon station on the corner never varies more than a few cents from the price advertised at the convenience store across the street. Public EV charging prices may be more stable in comparison, but they are not particularly uniform. How do EV charging prices get determined? Public documents from Fairfax County, Virginia give us a glimpse into their particular process for price setting.
Public Charging Fees Set by Fairfax County Board of Supervisors
This month, the Fairfax County Board of Supervisors approved a $0.30 per kWh fee for EV charging on county property. They also set an idling fee of $2.00 per hour.
The 30 cents per kilowatt hour is to be paid by members of the public as well as by county employees who charge their private electric vehicles while at work. The “dwell-time” fee of $2.00 per hour kicks in when the vehicle is finished charging after a 10-minute grace period.
The idling fee is to motivate EV drivers to vacate charging spaces at county office buildings when their battery is full. The idling fee is also deliberately intended to apply at Park-and-Ride and Metro garages where EV drivers cannot move their vehicles in the middle of the day. More on that later.
How did Fairfax County come up with these fees? Let’s take a look.
$0.30 per kWh for EV Charging in Fairfax County VA
A report titled “Establishment of Retail Fees for the Charging of Electric Vehicles at County-Owned Charging Stations” was prepared by county staff for the Board of Supervisors. It detailed the rationale for the $0.30 per kilowatt hour pricing and $2.00 per hour dwell-time fee.
The report said that the most important considerations in setting the fees were (1) the costs that are to be recovered by the fees; (2) the user’s ability to access and move their vehicle when charging is completed, and (3) competitiveness with the fees charged by other stations located nearby.
The methodology used to determine the pricing weighed the relative merits of a cost recovery method vs a competitive market approach. The report concluded that while cost recovery was an important consideration, pricing that remained in line with the competitive market took precedence. “Prices that are too high in comparison to those charged by other providers are likely to lead to reduced demand for the service absent some unique benefit.”
Level 2 Prices Conflated with DC Fast Charging
Fairfax County surveyed fees by various EV charging providers in the county but they did not distinguish between Level 2 and DC fast charger pricing. The fees that they compared are summarized in Table 1 of the report:
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