Strategic Analysis for BC Hydro in Response to Plug-in Hybrid Electric Vehicles

This project addresses the question of how the adoption of Plug-in Hybrid Electric Vehicles (PHEVs) in British Columbia will impact the demand for electricity from BC Hydro. We develop three adoption scenarios along with an analysis of how each of these scenarios will affect BC Hydro’s key performance metrics. We utilize a balanced scorecard to look at the effect of four possible strategies on the impact of PHEVs on BC Hydro’s metrics. We find that the best of the four strategies analyzed is one in which BC Hydro adopts a dynamic rates system, which allows their customers to set a buy and a sell price for the electricity used to charge their PHEV battery. As well as adopting a dynamic rates system, the optimum strategy also utilizes reverse metering where the vehicle owner can sell their battery-stored power back to the grid or alternatively uses it to power their home.