The wise use of electricity, Beneficial Electrification, has sparked widespread re-thinking of policies that encourage or mandate less electricity use and promote infrastructure planning. Advancements in electric technologies continue to create new opportunities to use electricity as a substitute for on-site fossil fuels like natural gas, propane, gasoline, and fuel oil, with increased efficiency and control.  

Auto manufacturers are taking note, and as of January 2025, there are currently over 50 battery-electric vehicle models available in the US, with 60 new or updated EVs slated to release in 2025. EV alternatives for every driving need are also commercially available, such as electric transit and school buses, all-electric 18-wheelers, ferries, and agricultural equipment.  

Although the EV market is currently small, adoption is increasing. If current trends continue, co-ops could see significant penetration of electric vehicles over the next 15 years, particularly in suburban areas and bedroom communities for large cities.  

Auto manufacturers' commitments to all-electric lineups and shifts in policy and consumer demand are drivers of this rapid growth. Advancements in technology are allowing manufacturers to build cheaper and longer-range EVs, decreasing the major barriers to EV adoption of initial cost and range anxiety.  

If more vehicles are fueled with electricity in the coming years, a significant share of the $224 billion that Americans spend annually on gasoline would be redirected to the electric utility sector. This presents a growth opportunity for cooperatives that could lead to lower costs for consumer-members.

For co-ops, managing the timing of plug-in electric vehicle charging is essential if co-ops want to reap the potentially significant financial benefits from the plug-in electric vehicle (PEV) load. Co-ops can expect a 13 to 40 percent increase in electricity consumption among households that own an EV.

Encouraging off peak charging for households with level 2 (higher capacity, faster) chargers is important in order to minimize the negative impact to distribution systems. Increased adoption of EVs charging in co-op territories presents several opportunities for co-ops, including the ability to be their members’ trusted energy advisor by educating and engaging on the benefits of EVs, including how and when to charge them. Tracking the location of PEV adoption is also important to prevent stressing the distribution grid.

There is also an opportunity for co-ops and utilities to lead with rate design and charging programs. For cooperatives in areas with growing EV adoption, they may consider coordinating the charger installation process and providing incentives and price signals for when the vehicles charge, so that the demand management strategies of the co-op are supported rather than negatively impacted. For co-ops in largely rural areas, many may choose to take no action at this time, although it is recommended that even these co-ops have an idea of how they will respond to an EV connecting to their lines.

However, if co-ops can manage these key variables, PEV adoption is likely to result in increased profit, value to consumers, and beneficial electrification.