Charging ahead with electric vehicles.

New models of electric vehicles are making their debut as automakers march toward the government's deadline for getting specific volumes of pollution-free vehicles onto American highways. Manufacturing electric vehicles is one feat - but keeping them running is clearly another. This author outlines

As discussed in the last issue of Business Forum, the public policy case for electric vehicles-ensuring that the air we breathe is healthy-is compelling. But, now that electric vehicles are available in showrooms, how do we ensure that consumers drive them?

A recent study conducted by J. D. Power and Associates found that nearly one-quarter of Southern Californians would consider buying an electric vehicle. The study also found, however, that the EV's success will be based on how it performs as a vehicle - not its effect as an environmental solution.

My company-Edison EV-was launched by Edison International (parent company of Southern California Edison) last January to ensure that using and fueling electric vehicles is even more convenient than a trip to the gas station.

Charging at Home

We at Edison EV serve as a bridge between the automobile manufacturers, whose responsibility ends at the car fender, and utilities which are limited by regulators to services on "their side of the meter." Edison EV fills that gap by providing a simple, one-stop answer for EV owners' charging needs.

Without Edison EV, customers would be faced with time-consuming and confusing tasks: finding a reliable contractor, establishing costs, and coordinating with the local utility and with permitting agencies. And, customers would assume the risk of inadequate installation. Edison EV coordinates all aspects of charging installation. We also provide maintenance, repair service, and warranties for charging stations.

We expect most EV drivers to charge their vehicles at home overnight (when rates offered by Southern California Edison and other utilities are low enough that, mile for mile, fueling an EV will cost less than one-fourth of its gasoline counterpart. In fact, we had underestimated how much drivers enjoy backing out of the driveway each morning completely fueled.

Importance of Public Charging

Unfortunately, today's battery technology seriously limits the driving range of electric vehicles. Because of this limit, public charging stations are critically needed to create a market for electric vehicles.

The public charging issue has been characterized as a chicken-and-egg dilemma: Consumers are reluctant to buy electric vehicles until a network of public charging stations is available, although there is little incentive for businesses to install public charging facilities until there are more vehicles on the road.

Edison EV has always believed that the infrastructure must come first {that's why we were in the market nearly a year before any vehicles}. Fortunately, we've been able to locate a number of pioneering businesses and local governments whose leaders also share this vision.

Our goal has been to work with forward-thinking companies and municipalities to provide public charging at convenient locations such as restaurants, resort hotels, commuter parks, shopping malls, country clubs, and entertainment centers.

We bring the fuel to the customers so they don't have to make a special trip to refuel. These are locations where customers will spend an hour or so - enough time to extend vehicle range by more than half. And, because these locations are highly visible, they not only meet the needs of current EV drivers; they also build awareness of EV technology among potential customers, thus helping to expand the market.

In our first round of installations completed in mid-1997, we opened more than 100 public charging stations at locations such as Price Costco (at six different stores, from Oxnard to San Diego), Ralphs grocery markets (four locations), Hawthorne Savings (three locations), and Scripps Hospitals (four locations in San Diego), as well as in cities such as Pasadena and Thousand Oaks. We completed nearly 200 stations by the end of the year.

Businesses have a number of reasons for hosting public charging sites. Some see pioneering these stations as consistent with their image as technological leaders. Others view public charging as a means to further their commitment to environmental protection. Many want to attract EV drivers-a loyal and enthusiastic group whose income and educational levels are above average-as customers.

Recognizing that public charging is critical to the development of the electric vehicle market, both Arizona and California have established publicly-funded programs and grant programs to facilitate the installation of public charging sites. These programs typically require site hosts to absorb at least 50 percent of the cost.

Fleet Charging

While public charging stations are popping up all over Southern California and Arizona, we have just completed the nation's first major, non-utility fleet installation at the Naval Construction Battalion Center, Port Hueneme, located just outside Oxnard, CA.

The Navy selected the Port Hueneme site as one of four sites in the country to deploy electric vehicles in large numbers. The base houses 23Chevrolet S-10 electric pickups, as well as six electric-powered Chrysler EPIC (officially, Electric Power Interurban Commuter) minivans. We installed a charger for each vehicle and included an expansion capability for another ten chargers across the base.

Fleets are a natural market niche for electric vehicles because they usually travel short distances over an established route and are centrally refueled. Port Hueneme is the first, and we expect many governmental fleets-federal, state; and municipal, as well as a number of utility and other corporate fleets-to deploy electric vehicles over the next five years.

Alliances

Creating a new industry is too large a task for any single company - even one with the resources of Edison International behind it. That is why we have pursued a strategy of building alliances with automakers, utilities, and charger manufacturers.

Last year, Edison EV formed a partnership with Saturn retailers to provide charger installation services for GM's EV1 and secured an exclusive distributorship in California and Arizona for the Delco inductive charger designed for both the sporty coupe and the electric S-10 pickup.

Earlier this year, we announced a similar alliance with American Honda Motor Co., whose electric vehicle, the EV Plus, has been available since May 1997. Honda's EV uses a conductive charging system that is built into the car; Edison installs electric vehicle connecting devices to support charging. Last November, Ford Motor Company and Honda announced that they had joined forces to provide funds to accelerate our installation of charging stations in Southern California.

Edison EV has also formed alliances with utilities in California and Arizona where EVs are for lease. These alliances recognize that Edison EV, as an electric vehicle infrastructure company, and other utilities have different, but complementary, roles in fostering the introduction of electric vehicles and related technology in the utilities' service areas. Agreements address selling and marketing electric vehicle chargers in each utility's service territory, branding practices on charger units in public and private settings, and servicing chargers.

The goal of all of these alliances is to facilitate the rapid introduction of EV charging in to meet the needs of EV drivers.

It is precisely on EV drivers that we now must focus our attention. Remember, there haven't been many EV drivers until now: automotive technicians and utility researchers, yes; members of the general public driving high-quality vehicles mass produced by major automakers, no. The whole world is watching California's EV experiment. Edison EV is committed to working with our partners to ensure customer satisfaction and the success of this new industry.

DIANE O. WITTENBERG is president and chief executive officer of Edison EV. Previously, as division vice president of Southern California Edison from 1994 to 1996, Wittenberg was responsible for all Edison activities undertaken to prepare Southern California for electric cars, public transit infrastructure, new business development, and electric transportation. As manager of electric transportation from 1992 to 1994, she oversaw electric vehicle research and development, commercialization, and electrified mass transit activities. She was also appointed to the Transportation Committee for the President's Council on Environmental Quality.