Transitioning to a zero-emission vehicle (ZEV) fleet
involves numerous considerations, and among them is
the crucial element of electricity billing. As electric
vehicles (EVs) increasingly become the norm in transit
fleets, the role of the fleet manager is evolving to include
a deep understanding of new operational complexities
such as energy usage and costs.
Today, a substantial part of operating costs for electric
fleets can be attributed to electricity billing, making it
crucial for fleet managers to have awareness of
concepts like demand charges and how to reduce them.
Initial deployments of electric vehicles in fleets clearly
showed the importance of taking demand charges into
account as early as possible in the ZEV deployment
process and implementing strategies to mitigate
demand charges and reduce electric bill costs.
This overview takes a closer look at demand charges,
with an explanation of how they work, why they exist, and
methods fleets can use for demand charge reduction
while still prioritizing and meeting operational goals.
