NRG Energy (NYSE: NRG), through its eVgo subsidiary, has been cleared to provide Californians with the nation’s most comprehensive electric vehicle (EV) charging network including fast chargers that allow drivers to add 50 miles of range in 15 minutes at premier retail environments. With today’s Federal Energy Regulatory Commission (FERC) approval of the agreement between the California Public Utilities Commission and NRG, eVgo can now begin work on a network that will raise the bar on convenience for EV drivers.
As part of its agreement with the Commission, NRG is investing approximately $100 million over the next four years in the eVgo California charging network, generating in the process more than 1,500 jobs and a total economic benefit of more than $185 million from employment and procurement of goods and services.
“This approval enables one of the most visionary "public-private partnerships" ever conceived to move forward; enabling NRG to begin bringing the benefits of a comprehensive EV fast charging network to the largest population centers in California,” said David Crane, President and CEO of NRG Energy. “This network will open the door for more California drivers to enjoy the enormous benefits of EV ownership.”
The fee-based eVgo charging network will consist of at least 200 publicly available fast-charging stations conveniently located at premier retail locations in the San Francisco Bay area, the San Joaquin Valley, the Los Angeles Basin and San Diego County.
As part of the agreement, NRG will also facilitate EV ownership for Californians who live in apartment buildings and other multi-unit housing complexes and for Californians hoping to commute to work in an electric vehicle through its "make ready" commitment. eVgo will install the wiring (make readies) for at least 10,000 individual charging stations located at offices, multifamily communities, schools and hospitals.
To help ensure electric vehicle charging is available to Californians of all income levels, NRG will install at least 20 percent of the fast charging stations in low income areas and ensure that mixed-income housing locations are identified, evaluated, and pursued for the individual charging station make readies.
As part of the commitment to California, NRG will spend $5 million in collaboration with researchers and stakeholders on technology demonstration projects that will test new charging and related technologies and invest $4 million, in consultation with The Greenlining Institute, the California Plug-In Electric Vehicle Collaborative and other key stakeholders, to support low income car-sharing, workforce training, and related opportunity programs.
“With gasoline having just set new record highs, FERC’s decision today couldn’t be more timely or important for California drivers,” said Terry O’Day, Director of Business Development for eVgo in California. “Now that we can start building eVgo fast-charging stations in California, EV drivers should expect range confidence from the first Freedom Station sites in early 2013 and many more to follow.”
Follow our progress online at eVgoNetwork.com and on your favorite social networks! Join the conversation on twitter: #evgoCA
In addition to the investment NRG will be making in EV infrastructure to benefit Californians, NRG will contribute $20 million to the California Public Utility Commission for rate payer relief.
“We commend California and the California Public Utility Commission for their forward-looking views on the benefits of Zero Emission Vehicles like EVs and then turning their views into action to actually encourage greater EV ownership,” added Crane. “Together, we are creating an outstanding environment for making EVs an extremely viable, sustainable and fun way to drive in the State.”
The agreement resolves outstanding litigation arising out of a long-term electricity contract entered into over a decade ago by a subsidiary of Dynegy, Inc., then a co-owner with NRG of a portfolio of power generating plants in California. NRG inherited responsibility for resolving this matter in 2006 when the Company acquired Dynegy's 50% interest in the assets.
NRG is at the forefront of changing how people think about and use energy. A Fortune 500 company based in Princeton, NJ, NRG is a pioneer in developing cleaner and smarter energy choices for our customers: whether as one of the largest solar power developers in the country, or by building the first privately funded electric vehicle charging infrastructure or by giving customers the latest smart energy solutions to better manage their energy use. Our diverse power generating facilities can support more than 20 million homes and our retail electricity providers—Reliant, Green Mountain Energy Company and Energy Plus—serve more than two million customers. More information is available at www.nrgenergy.com. Connect with NRG Energy on Facebook and follow us on Twitter @nrgenergy.
eVgo is creating the nation’s first privately funded, comprehensive electric vehicle ecosystem. The eVgo(SM) network gives EV owners new freedom and range confidence via home charging and fast-charging stations conveniently located at major retailers, employers and along highways across eVgo cities. eVgo allows EV owners to avoid paying large up-front costs for a home charger and provides unlimited use remote charging—all for one low monthly fee. To find out more, or to join the eVgo network, visit www.eVgoNetwork.com. Connect with eVgo on Facebook and follow us on Twitter @evgonetwork.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions and include NRG’s expectations regarding the Company’s agreement with the California Public Utilities Commission and electric vehicle infrastructure and forward-looking statements typically can be identified by the use of words such as “will,” “expect,” “believe,” and similar terms. Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, general economic conditions, hazards customary in the power industry, competition in wholesale power markets, the volatility of energy and fuel prices, failure of customers to perform under contracts, changes in the wholesale power markets, changes in government regulation of markets and of environmental emissions, and our ability to achieve the expected benefits and timing of our electric vehicle projects. NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect NRG’s future results included in NRG’s filings with the Securities and Exchange Commission at www.sec.gov.