The city of Cold Lake’s electric vehicle (EV) chargers have seen steady use since their installation, but the high cost of energy means that the city is facing significant financial losses in operating the stations.
After resolving early technical issues, the chargers saw 214 users over their first six months, yet the city incurred a loss of $6,818 during this period, primarily due to high transmission and distribution fees.
Mayor Craig Copeland acknowledged the importance of the chargers in promoting sustainability and emission reduction goals but expressed concerns about the financial viability. “It is good to see that they were being used, but with initial numbers showing that the operations result in a large subsidy for EV users, we are unsure if the chargers are financially sustainable, given the electricity costs and the transmission and distribution fees we are seeing,” Copeland said.
The city charges 50 cents per minute of charge time, one of the higher rates for EV charging in northern Alberta, and benefits from a special electricity rate designed for charging stations. However, in the first six months, Cold Lake received $3,065 in sales and $2,461 in revenue, while energy costs totaled $9,279. The largest loss occurred in September, with $481 in revenue and $2,926 in energy expenses. A credit pf $3,815 was later issued by ATCO Electric due to billing issues, reducing the overall loss to $3,003, though it remains unclear how this credit will apply.
City administration noted that the high operating costs, particularly the distribution and transmission fees, make it difficult for the EV charging service to be financially viable. “This does not seem to be an issue that can be resolved by scale,” said CAO Kevin Nagoya. “Increasing sales would simply magnify the losses suffered.”
The city is currently exploring ways to reduce costs. ATCO Electric suggested connecting the chargers to adjacent facilities to blend distribution fees, which might reduce some charges. However, administration warned that this would make it difficult to track the true cost of operating the chargers, as the distribution fees are variable and usage dependent.
Nagoya further cautioned that future grid updates to accommodate increased electric vehicle adoption could raise distribution costs even further. “Our prices would have to more than double and that would not begin to touch the capital costs of the units themselves,” he said.
Mayor Copeland emphasized that the city will continue researching solutions and will examine how other municipalities are addressing similar challenges. The two chargers were installed as a learning opportunity, funded by federal grants. “It’s a chance for us to learn, iron out some wrinkles, and see how far down this road we can go,” Copeland added.
The city will need to make a decision on whether to continue operating the EV chargers as they evaluate potential solutions and consider the long-term sustainability of the program.
