Valuing Electric Vehicles...

Electric Vehicles have compelling value propositions in the US market. First, it can direct the dough away from OPEC to the pockets of US electric utilities. Second, it can create some cool jobs. Third, it will reduce demand for gasoline to further jack down oil price.

However, most people will not buy Electric Vehicle thinking – “Aha, let me bolster the US economy. Hey OPEC, you like the pinch, yeah?” Some of those saintly folks will buy EV because they are deafened by the carbon cry of our moribund planet, - and some of my miserly buddies will do it to save on fuel cost.

Well, emission continues: not through the tailpipes, but through the plant chimneys. Until renewables become a dominant mix in the generation portfolio, EV will only make just a little sense from the environmental standpoint.

But I think my cheap buds are wiser. EV, even in its diapers, can drive you up to 40 miles for less than 2 dollars. With dynamic pricing, this cost may go down to as low as 32 cents. If you are in Austin and you never have to drive more than 40 miles a day, your monthly fuel cost will be about $10. Pretty neat, indeed!

Captain Haddock on Dynamic Pricing

“Thank you contacting Smart Utility. This is Smarty Pants. How can I help you today?” 

“Billions of bilious blistering barnacles, - my bill has ballooned three times.”

“Sorry to hear that, Sir.” Smarty Pants gets ready to tap on the mute button. “May I have your name and address, please?”

“Captain Haddock. 1234 Smart Lane. Smart City.”

“I see that your bill for this month is $450, and your average for the last 12 months was $150.”

“Tell me why, Vampire!” Captain roared.

“Hmm, your usage looks a little higher.”

“So, you numb-skulled fuzzy-wuzzy, why is my usage so ramshackle high if my usage is just a tiny-miny higher?”

“Can I place you on hold?”

“No. I am sick of that bleeping music. I was holding for last 20 minutes.”

“No problem, Sir. Just to comfort you, - lots of people have the same complain. So, don’t feel that you are alone, OK?”

“OK. Thank you.”

“Sir, I found the problem. We replaced your electromechanical meter with a smart meter.”

“Darn good. Why do I pay more?”

“Two reasons. First – your previous meter was very old, and so was recording readings lower the actual. Now you have an electronic meter which actually works.”

“I thought I am the only one losing my pace. Balkan Beetle! You have been subsidizing my whisky for all these years?”

“You should feel good about that. Second, I notice that you are in real time pricing. And you seem to be swimming in your heated pool between 8 and 9 AM every morning”.

“Gibbering ghost, how do you know that?”

“Ho ho. I can tell a lot about your personal habits looking at your data.” Smarty Pants continued boastfully, "We got our home area network, Sir. Let me see. You had a 10 days vacation last month after which you hosted a series of bacchanalia at your place...you gotta pay for all that, Mr Haddock.”

“Yes I went to Tibet. Holy moly, I have been violated. I don’t understand this... what pricing?”

“Dynamic pricing, Sir. You apparently opted for the most risky category – Real Time.”

“Yes, yes. I am the captain, I love risks... but explain this thing to me, baboon!”

“Ummm...I don’t know anything beyond this screen, Sir. But if you hold, I can transfer this call to my supervisor. She has just completed the train-the-trainer course. But I can tell you that your bill will be significantly reduced if you take your laps after midnight.”

“You fuzz-headed profiteer, you are not getting away with that. I will have my razor-toothed piranhas cut your wires.” Captain hung up.