Charging Stations Shortchange City Coffers

It was little more than a year ago when the City of Socorro’s past and future coincided as two electric vehicle charging stations were constructed near the city’s historic plaza.

However, the future of green-energy transportation has done nothing more than shortchange the city’s coffers. For every $1 the city brings in, the expense is $3.

Pricey transformation

Digging began in early May 2023 for the electric vehicle charging station in Socorro’s Historic Plaza.

The plaza was selected as the location for the charging station to help drive tourism to the historic area of Socorro. Ideally, visitors will walk through the plaza, patronize local businesses on the plaza, visit the Isidro Baca Veteran’s Park or visit the nearby San Miguel Mission as their vehicle charges.

Albuquerque’s APIC Solutions Inc. was responsible for charging stations’ construction. However, the charging station in Socorro needed significantly more electricity than was available through the existing infrastructure, which was part of the high installation cost. The transformer at the plaza had to be upgraded so it had enough capacity for the electricity required to run the charger, which incurred a $49,000 expense paid to the Socorro Electric Co-operative.

Approval for a new transformer slowed down the project thus the actual first charge wasn’t until November of 2023.

The city has spent just shy of $40,000 on the project. Plus, it had to pay $27,000 for a four-year service agreement with ChargePoint to run the charging stations in addition to replacing the road that was dug up, which cost an estimated $10,000.

ChargePoint, the charger manufacturer and the company that runs payment processing, receives 10 percent of the fee when someone charges at the station, while the city collects the rest.

However, what the city receives doesn’t cover the expense to support the two stations.

City records indicate in a period of nine months, from November of 2023 to June of 2024, it has received a mere $10,649.07 from fees for the two charging stations.

The expense is a different story.

During the same time frame, the city has paid more than $31,897.10 in expenses. Almost all the expense is electricity purchased from Socorro Electric Co-operative because of demand charges.

A demand charge is when a lot of power is pulled from the transformer all at once, similar to a refrigerated air conditioner being turned on. Recently a New Mexico DOT official told a city official only electric co-ops associated with Tri-State charge demand fees for its use of a larger transformer for EV charging stations. Public Service Company of New Mexico (also known as PNM) does not charge a demand fee for EV charging stations located within its jurisdiction.

Governor’s vision

The electric vehicle charging station was part of Gov. Michelle Lujan Grisham’s $38 million federal investment to place electric charging stations throughout the state in 2022. The charging stations in all locations are not brand-specific, so any electric vehicle is able to power up at Socorro’s Plaza.

The governor hosted a ceremony to launch the deployment of those funds in Socorro, where the funding’s first two EV chargers were to be built on the city’s historic plaza.

“New Mexico is leading the nation in driving the future of greener transportation forward,” Lujan Grisham said two years ago. “Whether it’s a trip across town or across the state, we are using every available tool to ensure that everyone in New Mexico can benefit from electric vehicles. Building a comprehensive network of EV charging stations throughout the state will not only reduce our greenhouse gas emissions caused by transportation – and their effects in frontline communities – but also open cities and towns across New Mexico for additional tourism, attracting new visitors and putting more money into local economies.”

Under the Bipartisan Infrastructure Law, New Mexico was slated to receive $38 million over five years to complete the state’s portion of a national electric infrastructure network. Under the state’s National Electric Vehicle Infrastructure (NEVI) plan submitted this week to the federal Department of Transportation, electric vehicle (EV) chargers will be located no greater than every 50 miles along New Mexico interstates, supporting safe and comfortable travel across the state for the growing number of EV owners in New Mexico and throughout the country.

A 2022 press release from the governor’s office stated the over half a million-dollar project was funded primarily by the federal American Rescue Plan Act and by state funds. The charging station itself is $150,000, but the work to install it comes at a much higher price tag of $407,000.