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Helping a client develop a strategy to promote and stimulate growth in the local electric vehicle market

Background

A Southwest electric utility was struggling to define a strategy for electric vehicles (EV). In this strategy “vacuum,” a series of actions were being taken, such as preparing to install public EV charging stations without regulatory approval, offering rebates for home charging, negotiating with local area employers to subsidize the installation of charging stations for employees, and making commitments to a state-wide EV coalition.

Solution

Working closely with the company’s Strategy group, MCR systematically looked at the local market for EVs, the barriers to adoption within the local auto market, and the regulatory landscape in order to develop an EV situation assessment. Based on this assessment and the company’s strategies, goals and risk profile, MCR developed a set of strategy alternatives. Each alternative was assessed in the context of a set of core beliefs of the EV market (e.g., how fast the market will evolve; likelihood the utility commission would support a particular EV request, such as the inclusion of EV charging stations in rate base; etc.). The assessment led to the selection and articulation of an EV strategy.

Based on the EV strategy, MCR developed a set of potential EV pilots and programs. Each of the potential pilots and programs were evaluated in terms of their impact on the strategy (e.g., how likely would a specific EV pilot be successful in recruiting participants, how likely would an EV promotion campaign result in EV purchases). Selection of the pilots and programs led to the development of a set of more detailed plans for organizations across the company, including Marketing, Sales, Regulatory, Legislative Affairs, IT, etc. The detailed plans drove implementation of the EV pilots and programs.

Results

Our client successfully launched several EV programs, including promotional campaigns to stimulate the local EV market, regulatory initiatives to gain clarity about certain elements of their strategy, and direct sales efforts with selected commercial businesses. Specific performance measures are being monitored with the anticipation that these initiatives will be iterative in nature and adjusted as market feedback is assessed.