Expanding electric vehicles in Michigan would generate billions in savings

Report shows massive potential for growth in MI Ahead of Michigan Technical Conference on Alternative Fuel Vehicles

Lansing. August 8, 2017 -A new report released today by M.J. Bradley & Associates, and commissioned by Charge Up Midwest, found expanding electric vehicles could save Michigan families, drivers and electricity customers billions of dollars over the next three decades. The report also found there is significant potential for growth for electric vehicles in Michigan. 

“Our study estimated the costs and benefits of increases in plug-in electric vehicles in the state of Michigan and found significant potential for electric vehicle growth and subsequent savings for residents,” said Brian Jones, senior vice president of M.J. Bradley & Associates. “Our highest projections are very attainable if the utilities, regulators and the private sector aggressively pursue electric vehicle adoption in Michigan.”

The report includes both “moderate” and “high” adoption scenarios based on Midcontinent Independent System Operator (MISO) and Bloomberg forecasts, respectively. According to the Bloomberg forecast, by 2050, up to 55.7 percent of all passenger vehicles and trucks in Michigan could be powered by electric vehicle technology. Key findings for cumulative financial benefits from mainstream Electric vehicle adoption in Michigan include:

  • Reduced electricity bills for utility customers are $800 million (moderate) and $2.6 billion (high) by 2050 
  • Savings from ownership of an EV compared to a gasoline vehicle are $6.3 billion (moderate) and $23.1 billion (high) by 2050
  • Societal benefits from reduced pollution are $1.5 billion (moderate) and $5.7 billion (high) by 2050

“The benefits of electric vehicles for Michigan are significant – especially when it comes to the potential for new auto sector jobs and protecting our air, land and Great Lakes,” said Charles Griffith, climate and energy program director for the Ecology Center. “In order to maintain Michigan’s leadership in the auto industry, as well as realize the economic and environmental benefits of reducing our use of imported petroleum, government, the private sector and utilities must work together to create smart policies and investment strategies to support the emerging electric vehicle sector.” 

Tomorrow, the Michigan Public Service Commission is hosting the Michigan Technical Conference on Alternative Fuel Vehicles. At the conference, automakers, electric utilities, charging station companies and other stakeholders will discuss the future of electric vehicles in Michigan.

“Michigan, the birthplace of the auto industry, could lead the electric vehicle revolution,” said Luke Tonachel, Director of Natural Resource Defense Council's Clean Vehicles and Fuels Project. “With the right infrastructure, electric vehicles can be an economic and environmental force that cuts pollution, lowers electricity rates, while being cheaper to operate than conventional gasoline vehicles.”

The report examined other benefits, including reduced oil use and lower greenhouse gas emissions in Michigan, including:

  • Gasoline saved annually: 138.6 million gallons (moderate) and 243.6 million gallons (high) by 2030
  • Greenhouse gas emissions reduced annually: 1.9 million tons (moderate) and 7.7 million tons (high) by 2050

“Accelerating the use of electric vehicles in Michigan will reduce dangerous pollution and protect our air, land and Great Lakes, said Joe Halso, Associate Attorney with the Sierra Club. “Now is the time to put Michigan on the road to cleaner air, a better grid, and stronger economy by improving drivers' access to our cleanest and cheapest transportation fuel: electricity.”

 

###